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An urgent action and swift implementation is needed from the government regarding the establishment of Semiconductor Chip Manufacturing and Wafer Fabrication (Fab) facilities in Punjab, along with the upgradation and modernization of the Semi-Conductor Laboratory at SAS Nagar valued at Rupees 10,000 crores.

The government’s decision for finalizing the modernisation plan of SCL Mohali and the partner for the same should be selected expeditiously as three projects in Gujarat and Assam have already been approved recently with private investors.

Punjab has a strong ecosystem in Electronic System Design and Manufacturing (ESDM), as it has units in fab manufacturing, telecom equipment, electronic testing labs, and state-of-the-art manufacturing lines. The advantage of Punjab’s infrastructure, including India’s, is only large-scale ASIC Fabrication Laboratory at the Semi-Conductor Laboratory in SAS Nagar.

The Punjab government has also submitted a proposal to the Ministry of Electronics and IT for establishment of a Semiconductor manufacturing unit at Rajpura for which land of 250 acre has already been identified. Central government should approve this proposal also.

I have written to IT Minister Ashwini Vaishnaw mentioning the critical importance of the semiconductor industry in the modern digital landscape. The recent data presented by the Ministry in the Rajya Sabha, emphasized that India stands as the second-largest importer of semiconductor chips globally, with a significant 92% surge in chip imports over the last three years. Projections indicate a substantial growth in semiconductor consumption, underlining the urgent need for domestic production facilities.

The recent global semiconductor shortage has underscored the strategic significance of investing in semiconductor manufacturing, particularly for nations aiming to ensure digital sovereignty, critical infrastructure security, and defense system integrity. Local production of semiconductor chips and allied items is essential for stabilizing the trade balance and reducing dependency on imports.

About the author:
Dr Vikram Sahney

Dr Vikram Sahney Dr. Vikram Sahney, is a Rajya Sabha member and a known philanthropist who has interests in education, skill development and is always forthcoming for social cause. He is also a composer, lyricist and a singer by hobby.

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