India's Semiconductor Ambition Faces Cyber Threats, IT Minister Warns Industry
India's IT Minister, Ashwini Vaishnaw, has cautioned the semiconductor industry and deeptech startups to be vigilant against potential cyberattacks and disruptions. This warning comes as India emerges as a competitive player in the high-stakes global value chain.
In an interview with PTI, Vaishnaw emphasized the need for continued vigilance against geopolitical risks as India builds its capabilities to design and manufacture chips. "We have to continuously be watchful of the potential geopolitical risks which will arise because India is now emerging as a country which can design and manufacture chips. Obviously, that will be seen as a threat by many other established players," Vaishnaw said.
Vigilance Against Cyber Threats
Vaishnaw had a candid discussion with the industry on the issue, and they are cognizant of the risks. He advised the industry to be prepared for cyberattacks and other kinds of threats and disruptions that might be created by countries that do not want India to succeed in the semiconductor value chain.
India's Semiconductor Push
India has stepped up efforts to build a full-stack semiconductor ecosystem, backed by government incentives for chip fabrication, packaging and testing, design, and talent development. The push has attracted investments from global and Indian companies, with multiple semiconductor units now under development or production.
Semicon 2.0 Policy
Under the Rs 1,27,500-crore Semicon 2.0 policy, India is deploying heavy capital incentives, flexing its engineering capabilities, and consumer market strength to create an end-to-end semiconductor value chain. According to the government, about $11-12 billion of semiconductor investment interest has emerged under Semicon 2.0, with projects expected to materialise over the next two to three years.
Why It Matters
The warning by Vaishnaw assumes significance as India seeks to strengthen domestic manufacturing and position itself as a key player in electronics and semiconductor supply chains. The semiconductor industry is critical for India's ambition to become a major player in the global technology landscape.
Context
The global semiconductor industry is highly competitive, and India's emergence as a significant player could be seen as a threat by established players. The government's efforts to create a supportive ecosystem for the industry, including the Semicon 2.0 policy, are aimed at attracting investments and promoting domestic manufacturing.
What to Watch
The industry's response to Vaishnaw's warning and the progress of semiconductor projects under the Semicon 2.0 policy will be crucial to watch. The success of these projects will depend on the industry's ability to mitigate cyber threats and other disruptions.