A video titled “Legendary or Joke? Modi Officially Announces India’s Homegrown Chips Are Ready for Launch” has gone viral on Bilibili, produced by the Chinese media outlet Guancha.com. The piece presents a balanced yet critical examination of India’s recent declaration about domestic chip production – a claim that has ignited fierce debate across Chinese social media platforms.
Key points from the video:
- India’s High-Profile Semiconductor Push
- The Indian government, under Prime Minister Narendra Modi, has heavily promoted its semiconductor ambitions, including Tata Group’s 270 billion rupee ($3.25 billion) investment in a 28nm chip fabrication plant in Assam.
- Modi framed this as a gateway to opportunities for India’s semiconductor and high-tech sectors.
- Reality Check: Technical and Structural Challenges
- Short timeline? The plant went from construction to production in under a year, raising skepticism about feasibility.
- Outdated tech? 28nm is far from cutting-edge (China has 3nm breakthroughs despite US sanctions).
- Past failures: India’s semiconductor history is littered with setbacks—failed ventures in the 1960s, a fire destroying a promising fab in the 1980s, and chronic issues like bureaucracy, funding shortages, and lack of expertise.
- Current Efforts & Roadblocks
- Tata’s 28nm chip: The only success so far, but still behind global leaders.
- Adani’s stalled $10B project: Collaboration with Israel’s Tower Semiconductor hit a snag over funding disputes.
- Zoho’s abandoned $700M plan: Lack of technical partners forced the software giant to pause expansion.
- Talent gap: India produces many chip design engineers but lacks manufacturing expertise—a far more complex challenge.
- Modi’s Political vs. Practical Decisions
- Despite Bangalore’s status as India’s tech hub, Modi prioritized establishing a semiconductor park in Dholera, Gujarat—a remote area with limited infrastructure. This move aligns with Gujarat’s significance as Modi’s home state and political stronghold, where his Bharatiya Janata Party party enjoys unwavering dominance.
- While the government touts this as ensuring long-term policy stability for semiconductor projects, critics question its feasibility, arguing that logistical challenges and inadequate infrastructure could hinder the project’s success.
- Should China Worry?
- India aims to position itself as an alternative supply chain for nations caught in US-China tensions, hoping to attract investment from companies diversifying away from China.
- However, without advanced technology or reliable infrastructure, India’s role may remain limited to low-end chips (e.g., automotive, appliances) rather than competing in high-end markets dominated by TSMC and Samsung.
- While India’s entry into chipmaking is a symbolic leap from 0 to 1, its technological lag, structural inefficiencies, and lack of ecosystem mean it won’t threaten China’s position anytime soon.
