Toolmakers commit the biggest new money at India's Rs 1.27 lakh crore chip phase

"Earlier this year, we began commercial production at Sanand," Micron CEO Sanjay Mehrotra said.

Micron expects to assemble and test tens of millions of chips at the Sanand plant this year and to scale that to hundreds of millions next year.

Modi said: "And today, when supply chains are being weaponised, its importance becomes much greater."

Infineon Technologies now has more than 2,800 employees in India.

Modi said India had entered the second phase of its semiconductor journey, moving beyond policy announcements and construction of plants towards commercial production of chips.

Infineon CEO Jochen Hanebeck called India a "market of tremendous importance" and pointed to his firm increasing hiring in India by 28%.

Twelve semiconductor projects were approved under the first phase of the India Semiconductor Mission, spanning fabrication, packaging and other parts of the chip value chain, and three have already started commercial production.

India's semiconductor demand is projected to reach $110 billion by FY30 and exceed $200 billion by FY35, while domestic manufacturing remains at a nascent stage.

Lam Research announced plans to invest around Rs 10,000 crore in India over the next several years to establish its first silicon-component manufacturing facility in the country and expand its advanced R&D operations, covering silicon ingot production and processing for advanced semiconductor technologies.

Lam Research COO Sesha Varadarajan said his firm would be investing Rs 10,000 crore "to establish our first silicon component manufacturing facility in the country".

Varadarajan said "we are increasing our partnerships with suppliers across India in specialised materials, precision components, gases, chemicals, metrology and manufacturing services".

Mehrotra said Micron's Indian teams have contributed to more than 3,700 patents, inventions and disclosures.

Global industry body SEMI's CEO Ajit Manocha estimated that the semiconductor industry would cross $1.3 trillion this year, and $2 trillion by 2030.

IT Minister Ashwini Vaishnaw said: "We will be targeting one lakh people to be trained, who will straight away be employed in the factories which are coming up in India, and it will be a global pool of talent which will be available."

India spent almost $150 billion on semiconductor product imports between FY17 and FY25, imports grew at a CAGR of 23% over that period, and if the trend continues annual imports could reach $240 billion by 2035.

Neither the Indian Express nor The Hindu account of Modi's speech names Taiwan or China; both report the pitch in terms of trusted locations and weaponised supply chains.

Mehrotra said "Our current production capacity already exceeds the memory required for India's entire laptop market".

Wayne Allan, an executive at ASML, said that "India will become increasingly important globally" as the chip ecosystem develops further.

"I urge industry leaders to lead R&D in the country," Modi said, seeking greater participation from private companies in research and development.

Lam Research's Rs 10,000 crore commitment is about 7.9 per cent of the Rs 1.27 lakh crore second-phase outlay.

India's projected $110 billion of FY30 demand is roughly 5.5 per cent of SEMI's $2 trillion 2030 industry estimate.

Twenty-three per cent compounded over ten years multiplies a base by 7.93, so the $240 billion 2035 import projection implies an FY25 import run-rate near $30 billion.

Almost $150 billion of semiconductor imports across the nine fiscal years FY17 to FY25 averages about $16.7 billion a year.

Trend imports of $240 billion by 2035 are at or above the projected domestic market of more than $200 billion by FY35, so domestic output has to displace imports rather than absorb demand growth alone.

The Hindu reported that Applied Materials committed to invest $5 billion over the coming five years, to expand their R&D centre and supply chain.

The two published accounts of Applied Materials' $5 billion imply either about $500 million a year over ten years or about $1 billion a year over five.