The AI Rush is in full swing, and while some, particularly the equity markets, have shown a slowing interest in the AI fever, the field continues to draw attention.
India’s Chip Chapter
One of the ways is by laying the foundation for the technology to prosper. Recently, a lot of focus has been poured into building the AI infrastructure.
One of the key components of this AI revolution, and something at the centre of all the happenings is semiconductors or chips. While TSMC and Taiwan at large hold an undeniable hold in this market.
Given the volatility in the market, and its security issues with China, many have often sought for other alternatives. Apart from China itself, alongside Vietnam is India.
According to a recent report by Jefferies, the South Asian giant has emerged as a semiconductor hub due to favourable government regulations, rising demand, low-cost production capabilities, and strategic alliances with Western countries, particularly the US.
Jefferies On India’s Ambitions
India has been looking to arm itself to become a semiconductor hub. In the past, it has brought major global players to the negotiating table.
Tata (Tata Electronics), one of its biggest conglomerates, in collaboration with Taiwan’s PSMC is set to make major facilities for chip manufacturing, in Gujarat and Assam.
The government has also had additional focus on building up resources.
As a result of this, hopes of India soon becoming a key player in this volatile markets have gone up.
American rating agency Jefferies is of the same opinion.
According to a recent report by Jefferies, the South Asian giant has emerged as a semiconductor hub due to favourable government regulations, rising demand, low-cost production capabilities, and strategic alliances with Western countries, particularly the US.
The AI Rush is in full swing, and while some, particularly the equity markets, have shown a slowing interest in the AI fever, the field continues to draw attention.
Billion Dollar Investments
In addition, the agency also said that the industry benefits from government fiscal incentives, a skilled design workforce, cheap manufacturing costs, and growing demand across the market.
The report pointed at USD 18 billion or around Rs 1.5 lakh crore in investments.
As per an ANI report, the Indian government is looking to build on its electronics production, pushing it to astronomical heights of USD 500 billion or Rs 43 lakh crore by 2030.
