New Delhi

Noting that India is doing a lot of right things to boost its semiconductor sector, John Neuffer, president and CEO of the US-based Semiconductor Industry Association has said that diversification of the supply chains is inevitable and it creates more opportunities for India to be part of the US supply chain.

In an exclusive interview with ANI on the sidelines of Carnegie India Global Technology Summit here on Friday, John Neuffer said more companies will participate in India's semiconductor ecosystem.

Neuffer said India is heading in the right direction and he very positive on the outlook.

However, he said India needs to focus on some problems at the border with customs, some tariff and non-tariff issues.

"It's inevitable that we're going to get more diversification of the supply chain. That started in earnest coming out of the pandemic and we saw that there were vulnerabilities and over concentrations in our supply chain. That creates opportunities for India to vacuum up more of our supply chain," Neuffer told ANI.

He said India has made significant progress in its semiconductor mission.

"Compared to where India was a couple of years ago, it's made really significant progress. We have six very important projects already in play. India is doing a lot of the right things. India needs to focus on some problems at the border with customs, some tariff and non-tariff issues... But overall, India is heading in the right direction, very positive on the outlook," he added.

Asked how India US collaborate more in semiconductor manufacturing, Neuffer said everybody in the supply chain plays a different role.

He also suggested that India should process more critical minerals and other components required in the front end of the semiconductor manufacturing ecosystem.

"Everybody in our supply chain plays a different role, and I think India has a very strong future when it comes to our backend assembly tests and packaging. It's a very important part of our supply chain, but on the front end, there's also critical minerals. India has a lot of these critical minerals and a lot of processing it does in other industries that the critical minerals and gases come from...So I think India needs to double down in those particular areas," Neuffer said.

"As India joins more actively in our supply chains, I think it's inevitable that we're going to get more companies participating in India's semi ecosystem," he said.

Earlier speaking at the Carnegie India Global Technology Summit, Neuffer said India should look at PCBs - Printed Circuit Boards.

"That's an important part of our supply chain. And then finally critical minerals. There is one country that does a ton of processing of those critical minerals... We are in an era where the diversification of our supply chains is going to accelerate. That's an opportunity for a lot of players around the world, but in particular India, our market size right now is about USD 600 billion a year in sales. Because of AI Automotive, many other sectors are demanding our chips, and we're probably going to be a trillion-dollar sector by 2030. If India plays its cards right, its piece of pie will become even bigger," he said.

Neuffer referred to the TRUST agreement between India and the US and to the talks for a bilateral trade agreement.

"India has done a lot right when it comes to our sector (semiconductor). 20% of our workforce is here. You have the design of our chips. You have a great ecosystem for that. We're in a very special moment right now. We have this TRSUT initiative in front of us, but we also have a bilateral trade agreement," he said.

"Those are two potential vectors for change that can make a difference as India moves in design and manufacture... India has made some great progress so far. Two years ago, there was nothing in play. Now, there are six important projects in play for manufacturing, including the assembly test packaging facility being built by Micron out in Gujarat...Someday, India is going to have a USD 10- USD 20 billion fab... That's a great aspiration," he added.

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During Prime Minister Narendra Modi's visit to the Unites States in February, he and US President Donald Trump announced the launch of the US-India TRUST ("Transforming the Relationship Utilizing Strategic Technology") initiative, which will catalyze government-to-government, academia and private sector collaboration to promote application of critical and emerging technologies in areas like defense, artificial intelligence, semiconductors, quantum, biotechnology, energy and space, while encouraging the use of verified technology vendors and ensuring sensitive technologies are protected.

Industry estimates place the Indian semiconductor market at approximately $38 billion in 2023, with projections indicating growth to $109 billion by 2030. To support this rapid expansion and reduce reliance on imports, the Indian government has implemented several initiatives aimed at promoting domestic semiconductor manufacturing. The India Semiconductor Mission (ISM) aims to build a sustainable semiconductor and display ecosystem that will position India as a leader in electronics manufacturing and design. Guided by international semiconductor experts, ISM coordinates efforts across government ministries, industry, and academic institutions to ensure efficient deployment of resources and support.