“A foundational industry, much like steel was": Ashwini Vaishnaw says semiconductor will be India's next job engine

Ashwini Vaishnaw, the Minister of Electronics and IT, said that semiconductors will play an important role in driving India’s next wave of job creation and industrial expansion just as steel did in the 20th century.

Speaking to Network 18’s Group Consulting Editor Bodhisatva Ganguli and Moneycontrol’s Deputy Executive Editor Chandra Ranganathan, the Minister said, “Semiconductors are a foundational industry, much like steel was. Once you build that base, it powers growth across a wide range of sectors.” 

Minister Ashwini Vaishnaw hopeful about semiconductors

He remarked that steel enabled the rise of industries like automobile manufacturing, construction, and infrastructure. Similarly, semiconductors are now central to modern manufacturing, embedded in everything from televisions and refrigerators to electric vehicles and advanced electronics.

“Practically every manufacturing sector today has an element of chips in its design and production processes. Establishing a strong semiconductor base in India will have a multiplier effect across the economy,” Vaishnaw added.

The Minister explained how countries that successfully developed semiconductor ecosystems have seen widespread benefits, including high-value employment, innovation, and resilience in critical supply chains.

India currently has 10 ongoing semiconductor projects worth $18 billion, with construction underway in five of them, including a facility in Assam.

Under the India Semiconductor Mission (ISM), the government intends to build not just chip fabrication but the entire supporting ecosystem, from speciality chemicals and gases to precision machinery and trained talent.

Minister Vaishnaw disclosed that semiconductors are not just about high-tech prestige, but they act as a huge employment opportunity, both directly and through their multiplier effect.

“Practically every modern manufacturing sector has semiconductors at its core. Establishing this foundational industry will ripple through every layer of the economy,” he said.

Echoing PM Modi’s recent remark that “while oil was black gold, chips are the new digital diamonds,” Vaishnaw added that India is placing the groundwork for a 25-year roadmap to establish a resilient and globally competitive semiconductor ecosystem.

“We started this journey in January 2022 with the announcement of the India Semiconductor Mission (ISM). Today, five of the ten approved units are already under construction—including one in Assam. The mission spans all critical sectors, from automotive and telecom to power electronics, defence, and strategic applications,” he said.

Despite growing concerns around renewed US trade protectionism and potential Trump-era tariffs, Vaishnaw assured that India continues to attract major investments in the semiconductor and electronics manufacturing sectors.

He mentioned how global players like Apple are not hesitating to invest in India’s electronics ecosystem.

Vaishnaw said that India’s growing strength in chip design, policy stability, skilled talent base, and global credibility are proving to be decisive factors for international companies to expand in the country.

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