NASDAQ: The share price of NVIDIA has fallen 8.89% in a month. This fall may be linked to any other reason, such as a FED interest rate cut or other market scenario, but if you link this fall to the Indian market, you can realize that in India the government is focusing aggressively to build up an ecosystem for semiconductor manufacturing.
Recently, the Indian government organized a three-day event named Semicon India, showcasing India’s semiconductor strategy and policies with a goal to make India a global hub for semiconductor manufacturing.
India as a Global Hub in Semiconductor Manufacturing
The Indian semiconductor market is currently valued at about $23 billion and is projected to reach $80 billion by 2028, with a compound annual growth rate (CAGR) of 17%, according to the latest report.
Semicon India 2024
Indian Prime Minister Mr. Narendra Modi on Monday, September 11, 2024, addresses a gathering of investors and manufacturers at the Semicon India 2024 event at the India Expo Mart in Uttar Pradesh’s Greater Noida.
PM Modi said, “The government is focusing a lot on the semiconductor manufacturing sector while we are reforming India, so we have to also make a reform in technology so that we could be capable of producing chip manufacturing and take a lead in technology and AI. India’s semiconductor sector is on the brink of a revolution, with breakthrough advancements set to transform the industry.”
PM Modi said that we have a vision for India: to see an Indian-made semiconductor chip in every electronic device worldwide. This reflects India’s ambitious plan to be a global hub in semiconductor manufacturing.
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Uttar Pradesh state contribution
Uttar Pradesh has established itself as a big hub of data centers to create a semiconductor-like environment in the country. The state has implemented the semiconductor policy 2024 to promote manufacturing in this sector and also for job creation.
The government is providing attracting initiatives to reduce the land value, stamp, and waste for semiconductor manufacturing. Uttar Pradesh is already being established as a semiconductor design engineer.
Proven track record in mobile phone manufacturing
Uttar Pradesh CM highlighted the state’s emergence as India’s largest mobile phone manufacturing state, contributing 55% of the country’s production with 60% of components made locally. UP’s conducive environment attracted Samsung to shift its first mobile display unit from China to the Indian State.
Samsung Initiated the Innovation Campus for 3,500 students who underwent training for the opportunity to gain practical industry knowledge.
NVIDIA share price has fallen potential reasons
The shares of NVIDIA have fallen due to slow growth and production concerns, while the company doubled its quarterly revenues. The reason for the fall may be that investors were concerned about signs of a slowdown in growth, in particular around its next-generation AI chip delay.
This chipmaker company is the third most valuable company in the world, with a market value of $3.1 trillion. The price drop has wiped off more than $100 billion from its stock market value.
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Conclusion
Finaly we can say that Indian government is focusing in this sector very progressively so if Indian companies could make a global presence in upcoming years then NVIDIA will definitely impacted through it’s chips demands.
Currently India is exporting the semiconductor chips from China and Taiwan majorly so with this Semicon India initiative the country has set a target of becoming exporter of chips. India has done phenomenal job in upgrading it’s position in “ease of doing bussiness.”
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Disclaimer: I am not a SEBI-registered investment adviser or research analyst. The information shared is only for educational purposes. This is not investment advice.
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