Indian government is up to the semiconductor challenge, says SIA chief John Neuffer

As the government of India is sharply focused on making India a global and trusted partner in the electronics ecosystem and semiconductor space, India’s vision is well appreciated by the experts globally. Speaking to Business Today, John Neuffer, president and CEO of the US-based Semiconductor Industry Association (SIA), said that he is very excited about India’s Semiconductor Mission and would like India to succeed. “A lot is going on in the semiconductor space right now. And India is making a significant move here. It is always good to have a new competitor in the market. It keeps us all innovative and lean.”

He also said that he believed that India would be able to set up semiconductor fabs soon, and that dream will turn into a reality.

Sharing insights on his understanding of India’s semiconductor program and incentive, Neuffer pointed out that while India has exhibited political commitment, but the country needs also to realise that the semiconductor industry is a very complex one.

“We are a global industry, and we are heavily reliant on supply chains. And it's very important when we're doing business at the border, a seamless experience. And so for example, tariffs at the border are problematic. So, as India thinks about it, plans to build fabs or integrated soft more deeply in the supply chain, it needs to also think about the broader ecosystem around the supply chains that enable them to work," he said.

The SIA chief emphasized on the fact that getting the supply chain right could be a big challenge, and is the biggest piece of the puzzle for India to figure out.

"But we've talked to a lot of Indian government officials so far, and definitely think your government's up to the challenge. Even with the significant program, being contemplated in the US Congress, to the tune of $52 billion, we are very upfront with the US government and with Congress, that that's a very good first step. And I think similarly, with India, this is a very good first step. But this is a very important industry. And I think, more attention by our governments to it will be necessary in the future,” he added.

John Neuffer was in New Delhi for signing a memorandum of understanding on behalf of SIA with India Electronics and Semiconductor Association (IESA) to foster collaboration and identify potential opportunities between the two countries in the semiconductor sector.

“IESA [can] give us a bridge to India, so that we can be a part of this discussion about what India is attempting, attempting to hear. But as I said, we are very excited about this," he said.