India is actively promoting the growth of its semiconductor industry and has implemented a production-linked incentive (PLI) scheme to support this endeavor. During his second day of the US state visit, Prime Minister Narendra Modi met with several American CEOs and extended invitations for increased investment in India. The CEOs included Sanjay Mehrotra from Micron Technology, Gary E Dickerson from Applied Materials, and H Lawrence Culp from General Electric. Discussions also took place with Elon Musk, CEO of Tesla, regarding potential investments in India.
The Ministry of External Affairs stated that Prime Minister Modi invited Micron Technology to enhance semiconductor manufacturing in India. Sanjay Mehrotra expressed optimism about future opportunities in India, emphasizing Micron’s leadership in memory and storage technology across various sectors. Gary E Dickerson, after meeting with the prime minister, emphasized the potential for incredible growth in India and expressed eagerness to work together. Modi also invited General Electric to play a larger role in India’s aviation and renewable energy sectors, acknowledging their commitment to manufacturing in India and discussing technology collaboration.
India’s semiconductor industry is gaining significant attention from global companies, attracted by the PLI scheme and the country’s positioning as an attractive destination for electronics and semiconductor manufacturing in Asia. While the Indian semiconductor market is valued at $27.2 billion and projected to grow at a strong rate, it currently relies on imports. Prime Minister Modi’s visit to the US is expected to motivate American companies to explore investment opportunities in India, aiming to reduce their reliance on China for manufacturing activities.
The report highlights the United States as the third-largest source of foreign investment in India, with over $60 billion accumulated from 2000 to 2023. Recent investment announcements by US companies further demonstrate their increasing interest in India. These include Tesla’s potential significant investment, Micron Technology’s approved plan for a semiconductor testing and packaging unit, Boeing’s investment in a logistics center, Amazon.com’s $13 billion investment in cloud infrastructure, Apple’s store openings and manufacturing collaborations, Foxconn’s investments in manufacturing plants and AirPods production, Cisco Systems’ manufacturing plans, Walmart’s goal to export goods, and General Electric’s potential involvement in aviation and renewable energy sectors. PM Modi also invited Applied Materials to contribute to India’s semiconductor ecosystem, particularly in process technology and advanced packaging capabilities.
