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We are going to talk about a very important topic. Recently, you must have seen many articles related to this topic where it is written that major boost to India-US ties. PM Modi is in the US today.
Thank you for reading this post, don't forget to subscribe!He had a very important meeting with Biden and many agreements were signed in that meeting. One of them is that the US Space Force will help India to set up a semiconductor plant in India.
For once you will hear that semiconductor chips will be manufactured in India, is this a big deal? Here let me tell you, yes this is a very big deal. This is not being done by any private company, this is being done by the US government. The USA Space Force, literally you can say, a wing of the US military is going to set up a very important security semiconductor fabrication plant in India.
Here your question is wait, why is it being written everywhere that this will be India’s first national security semiconductor fabrication plant, let me explain, see what the US is planning and why in the history of India also that this is being planned now, let me tell you about this, many details will come out, many videos may come out, many more agreements may also be signed that India may sign, but this will be a landmark achievement in the history of India that for the first time a national semiconductor fabrication plant will be ready in our country.
US SPACE FORCE will change Everything for India !!
Look, this will not be any ordinary semiconductor factory. Many semiconductor-related projects have already started across India and many more are about to start. This will be unique. The US and India are planning to set up a state-of-the-art testing centre, a centre of excellence, a design centre and two fabrication units in India. Along with this, whatever chips, whatever semiconductor chips are manufactured here, they can be used in India tomorrow.
Night vision devices have night vision goggles, which you must have seen many times that commandos wear, missile seekers, space sensors, Drosis drones. Here I am talking about fighter jets, electronic vehicles, military communications, radar jammers. Yes, you need semiconductor chips in all these things as well. So, whatever semiconductor chips are used here will be manufactured in India.
Why is this such a big development? Why will the US Space Force come to India? Because they have expertise. They will literally tell us what size of semiconductors they need, should it have specifications, what type of equipment US companies make, what are their standards? All this information will be given to India and we will start manufacturing these military semiconductor chips in India. Make in India will be a game changer for defense.
We will be able to make many weapons in India itself, we can export them tomorrow to other countries, to Africa, to South East Asia, to Middle East, various countries. And many reports are also claiming this.
However, this thing which I am going to tell you now is not confirmed anywhere, but it is being told that this will be the world’s first multi fabrication unit. Yes, we will call it a multi fabrication unit because semiconductors will be manufactured here for many things. This will be the first setup of its kind in the world. It will be built in Jewar, Uttar Pradesh. Jewar is a quite obvious one.
The right choice because you need a lot of space here and you must know that an international airport is also being built in Jewar itself, so there will be direct connectivity to that airport, with this multi-chip fabrication here, if you need to import or export something tomorrow, it will be done very easily, it all makes perfect sense.
If you have a question here that now our country will get the first National Security Semiconductor Fabrication Plant facility, you can yourself imagine what we used to do before that, we used to import semiconductors for defence, some from Europe, some from the US and many other countries and because of this, our import bill, the cost of buying Semiconductors for National Security, used to go above $1 billion every year, we are talking of an amount of more than Rs. 8200 crores here, so you can imagine that once the first National Security Semiconductor Fabrication Plant facility is set up in India, then after that, the billion dollars that we used to spend earlier
Well, not all, but I can imagine that the cost reduction of 50 to 60 percent will happen because the event will have to set up two-three facilities in India because the plans for India’s defence modernisation are very big.
If you have seen me many times, I keep saying that the defence budget is of 100 billion dollars. When the defence budget reaches 100 billion dollars, it is obvious that the Indian government will give orders that we need a lot of defence items in our country. Obviously, we will not purchase them. We have to promote Make in India Defence. So, this amount of 100 billion, a lot of money from this will go to Indian government and Indian private companies. They will get orders to manufacture defence items in India.
So, at that time, we will need national security related semiconductors, that demand will be insane.
Let me tell you, if we do not make this, then our import bill which is coming now is of billion dollars, I will not be surprised if it reaches four to five billion dollars because there will be a need in India, without semiconductors you cannot make all these items.
If your question here is that India is not doing anything with Russia, then see Russia knows one thing that this partnership with India is not possible in the current system. Again, let me add one thing here, if BRICS launches its own currency and in that currency India also says that you know what, it is a very good idea, the valuation is fine, its exchange rate with our currency is also fine and it becomes a success, the chances of which I would still say are a little low, the currency can be launched.
But the chances of the currency succeeding are very less but until a payment system is not formed under Russia, China, India and basically the BRICS countries, you will not see much cooperation between India and Russia in the semiconductor industry because even if we manufacture semiconductors in India, tomorrow if Russia purchases those semiconductors and uses them for the military, then it will be against US sanctions.
Russia’s strategy is quite simple. They want to depend on themselves. Russia is currently planning to become self-sufficient. It is being said that by 2030, they will manufacture various types of semiconductor chips in Russia itself. It is not known how they will do it.
As of now, 90% of the military semiconductors that Russia needs are coming from China. So, in this particular field, Russia is lagging far behind.
As per the initial talks that have taken place between India and the US, if I were to say, the US is way ahead. And the entry of the US Space Force in this clearly shows that a lot of semiconductor chips will be made for satellites and space-related equipment as well. So you can say that a foundation is being built for India-US defence relations.
If what we are seeing is true, if the ground reality is same as what the words are, you will see great improvement in the coming few years, if there are developments related to this topic, I will keep bringing you updates later
