Did customs delays sink India's 2005 AMD semiconductor project? Vaishnaw says: 'Learnt from past attempts'

Union Electronics and IT Minister Ashwini Vaishnaw on Sunday reacted to a post that claimed that India's proposed 2005 AMD-backed semiconductor project collapsed due to customs delays.

He said the government had "learnt from past attempts" and that 12 semiconductor units with $20 billion in investments have now been approved under the Semicon India programme.

Vaishnaw said the Centre launched Semicon India in 2022, after learning from past attempts.

"2022: We started Semicon India. Learnt from past attempts. Clear policy and execution," he said, adding that 12 semiconductor units with $20 billion investment had already been set up so far.

The IT minister also shared that three units are already making chips. "Semicon 2.0 approved, and we are just getting started."

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POST REVISITS FAILED 2005 PROJECT

The post Vaishnaw responded to highlighted a 2005 report stating that SemIndia Inc., a consortium of Indian technologists, had planned to invest $3 billion in a wafer fabrication facility in India using technology licensed from AMD.

It also claimed the project collapsed because semiconductor equipment imported into India remained stuck at ports awaiting customs clearances and approvals from multiple government departments.

According to the post, mounting storage costs eventually forced the companies to send the equipment back to China. This caused India to miss an opportunity to build a semiconductor manufacturing base.

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SEMICON 2.0 APPROVED

On July 15, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Semicon 2.0 programme with a budget outlay of ₹1.27 lakh crore to strengthen India's semiconductor design and manufacturing ecosystem.

The programme seeks to build on the momentum of Semicon 1.0 through six focus areas: chip design, semiconductor machines and materials, additional fabrication plants, expansion of ATMP/OSAT facilities, research and development, and talent development.

The government said the initiative aims to position India as a major semiconductor design and manufacturing hub while strengthening supply chains, supporting economic growth and enhancing technological capabilities.

PROGRESS UNDER SEMICON 1.0

The Cabinet also said that 12 manufacturing projects have so far been approved under the India Semiconductor Mission, involving cumulative investments of more than ₹1.64 lakh crore.

These include one silicon fabrication plant, one silicon carbide fab, an integrated gallium nitride Micro LED display fab and nine packaging units catering to sectors such as consumer electronics, automobiles, telecommunications, aerospace and industrial electronics.

Micron, Kaynes and CG Semi have already begun commercial production, while another approved unit is expected to start operations in 2026.