 in an assembly and test facility in the western state of Gujarat, Taiwanese tech giant Foxconn withdrew from its $19.5bn joint venture with India's Vedanta to build a chip-making plant in the country. Plans of at least two other companies appear to have been stalled, local media say. But as Mr Modi's government waits for high-value investments from chipmakers to match a $10bn incentives outlay, it has been inking a bunch of technology partnerships to get the industry on a firmer footing. Following an agreement with the US on Critical and Emerging Technology (iCET) to enhance bilateral collaboration on semiconductor supply chains, India signed a similar memorandum of understanding with Japan last week. Separately, at least three Indian states have announced individual policies aiming to secure investments in this sphere. While generous subsidies and a strong policy push have created a springboard for the sector to take off, time is of the essence and transfer of technology will be key to India's emergence as a manufacturing hub, says Konark Bhandari, a fellow at Carnegie India. "Whether companies commit to bringing these technologies will hinge upon an agglomeration of multiple factors, such as business climate, domestic market, export potential, infrastructure and talent," he says. As things stand, only parts of this puzzle appear to have fallen into place. Semiconductors power every aspect of modern, digital life - from tiny smartphones to mega data centres that control the internet. Advanced semiconductor technologies also play a key role in the auto industry's transition to climate-friendly electric vehicle){kind=link}
It has been a year-and-a-half since India announced incentives to power up a homegrown semiconductor manufacturing industry and launched a national mission, but progress has been slapdash.
Days after US major Micron announced it would invest nearly $3bn (£2.3bn) in an assembly and test facility in the western state of Gujarat, Taiwanese tech giant Foxconn withdrew from its $19.5bn joint venture with India’s Vedanta to build a chip-making plant in the country.
Plans of at least two other companies appear to have been stalled, local media say.
But as Mr Modi’s government waits for high-value investments from chipmakers to match a $10bn incentives outlay, it has been inking a bunch of technology partnerships to get the industry on a firmer footing.
Following an agreement with the US on Critical and Emerging Technology (iCET) to enhance bilateral collaboration on semiconductor supply chains, India signed a similar memorandum of understanding with Japan last week.