Ashwini Vaishnaw on Semiconductors, AI Risks and Techno-Legal Regulation

Corner Office Conversation

In this episode, India's IT Minister Ashwini Vaishnav discusses the nation's rapid ascent in the semiconductor and electronics manufacturing

Key takeaways

India has risen from 9th to 3rd rank in global electronics manufacturing exports.
The second phase of the semiconductor mission (ISM 2.0) involves an outlay of $18.5 billion.

Main topics

Semiconductor Mission (ISM 2.0)
Mobile Phone Manufacturing

Notable quotes

Our journey is as short as life.

Conclusion

The episode highlights India's strategic ambition to become a global s

Transcript preview

Speaker 2 (0:00) Semiconductor industry is a very difficult industry. This is a very steep learning curve. Speaker 1 (0:04) When do we really see a made in India and not really just assembled in India smartphone? Speaker 2 (0:08) We are world's second largest mobile phone manufacturer. Electronics manufacturing has come from ninth rank, it has come to third rank. Speaker 1 (0:14) When can we sort of match the levels of manufacturing or value addition that is done in countries like China? Speaker 2 (0:21) China has had a journey of almost four or three and a half decades. Our journey is as short as life. just about a decade. Speaker 1 (0:29) In my experience, I have never seen a situation where companies themselves are asking for regulation. The Speaker 2 (0:34) companies which are developing the models, they have to take a much bigger share of the responsibility. Regulation has to be framed. Speaker 1 (0:41) A lot of discussion around harms which... Some of the social media platforms are happening as far as child sensitive materials concern CSAM. Speaker 2 (0:51) Times come in our country also to have that framework where the child safety, women's safety and online safety of our citizens is balanced with the benefits which come from technology. Speaker 1 (1:02) One message through us to all the investors out there, what would that be? Speaker 2 (1:07) Consistency. Speaker 1 (1:07) India has made huge strides when it comes to semiconductors. India's first phase of the semiconductor mission was announced at the FAG end of 2021. Within four years and a commitment of $10 billion had led to 12 projects being approved, with one of them being a chip fabrication unit by the Tata's and PSMC and five others being chip assembly plants which have already gone into production. India has also announced the second phase of the semiconductor mission with an outlay of almost $13.5 billion. Put together, India's total commitment is close to $25 billion. But will India be able to compete with the likes of United States and China, which is putting in billions of dollars into semiconductors? Today, we are talking to IT Minister Mr. Ashwini Vaishnav in terms of when can we see the likes of Intel and Samsung investing in India. He also answers questions on the big debate that is happening in the United States on pausing and pacing AI development. Speaker 2 (2:07) It's Thursday, the 24th of September. Speaker 1 (2:09) I'm your host and ET's tech editor, Surabhi Agarwal. This is Corner Office Conversation. Speaker 1 (2:38) So we've just announced the second version of ISM. The outlay is very big. It is $18.5 billion as compared to $10 billion, which was as part of the ISM first phase. In terms of interest, we are hearing there's a lot of interest in the second phase. Tell us about it. What kind of companies are coming in, are setting up in India? And probably by the end of this five-year term of ISM 2.0, how do we see the ecosystem mature? Speaker 2 (3:06) So the ISM 2.2 is built on six pillars. Pillar 1 is design, Pillar 2 is materials and machines, Pillar 3 is more fares, Pillar 4 is more KTMP and OSAT units. Pillar 5 is RLE and Pillar 6 is talent. Speaker 1 (3:22) With Speaker 2 (3:23) these pillars, at the end of the SimCon 2.2, we would be happy and we would consider this as a success. Speaker 1 (3:31) Mr. Mishnu, how would you answer that question from a geopolitics point of view? Where does India fit in? And when do we probably see the Intels, the Qualcoms, the Samsungs and the TSMC come here? Speaker 2 (3:40) See, semiconductor industry is a very difficult industry. We must always be cognizant that this is a very steep learning curve. But like every industry, after the initial effort is put in, then the next level of growth is significantly easier. So that initial effort has already been put in now. Speaker 1 (3:59)