Govt advances efforts to develop mobile chips, cutting foreign tech reliance

India's smartphone market is growing swiftly, with the possibility of soon exceeding China. Driven by rising smartphone demand and a boom in production facilities, India has positioned itself as the world's second-largest smartphone market. The government is making notable progress to aid this expansion, rapidly pursuing the creation of chip production facilities domestically. At present, the chip industry is led by the United States and China.

This growth in the smartphone market is expected to gather more momentum. The Ministry of Electronics and Information Technology (MeitY), alongside the Department of Telecommunications (DoT), has developed a strategy to significantly enhance India’s smartphone industry. Through the Atmanirbhar Bharat Yojana, the government seeks to boost domestic chip manufacturing, anticipated to greatly support the smartphone sector.

During a recent talk at an ET program, MeitY Secretary S. Krishnan highlighted the vital importance of chipsets in relation to mobile operating systems in India. He emphasized that initiatives such as Atmanirbhar Bharat, the India Semiconductor Mission, and the Design-Linked Incentive Scheme will be crucial in this progress. 

The latest budget also demonstrates a dedication to prioritize semiconductors. This year, a significant budget increase of 83 percent has been set by the government for the Semiconductor Mission, bringing the total to Rs 7,000 crore. Furthermore, the funding for the Production Linked Initiative Scheme has increased by 55 percent, reaching Rs 9,000 crore. 

In comparison, China's semiconductor budget is roughly 47 billion dollars, which is about Rs 4 lakh crore. The progress of semiconductors is expected to propel AI growth in India, as these elements will improve AI applications that are likely to be crucial in multiple sectors moving forward.