Cyient Ltd. has announced its decision to expand into the semiconductor sector by launching a wholly-owned subsidiary. This move aligns with India’s initiative to enhance its chip technology landscape.
Market Projections and Growth
According to the Indian Electronics and Semiconductor Association (IESA), the global semiconductor market is expected to reach a trillion dollars by 2030. In parallel, India’s electronics and semiconductor sector is projected to grow to US$100 billion by the same year.
Global Importance of Semiconductors
Semiconductors have gained strategic importance in global politics due to their vital role in industries like defense, automotive, and telecommunications. Countries such as the US, Japan, and China are heavily investing in developing their national capabilities in this essential technology.
India’s Progress in Semiconductor Industry
In March, India approved three semiconductor plant proposals, projected to cost Rs 1.26 lakh crore and expected to boost the country’s electronics industry.
Key Developments and Investments
The details of the plan were unveiled in January 2022. Approximately 18 months later, in June 2023, US-based Micron announced plans to build an OSAT (Outsourced Semiconductor Assembly and Test) plant in Sanand, Gujarat. This marked a significant milestone, with Micron committing $825 million of the $2.75 billion investment needed for the project. The remaining funds will come from federal and state government incentives.
