India Semiconductor Mission

The Union Cabinet, led by the Prime Minister of India, has given the green light for the establishment of three semiconductor units as part of the Development of Semiconductors and Display Manufacturing Ecosystems in India initiative. These units are slated to commence construction within the next 100 days, marking a significant stride towards bolstering India's semiconductor and display manufacturing capabilities.

Key Highlights

About: The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was launched with an outlay of Rs. 76,000 crore. Micron's semiconductor unit in Sanand, Gujarat, was approved by the Union Cabinet, with construction underway. Additionally, three semiconductor units were approved:

1. Semiconductor Fab by Tata Electronics: A partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, investing Rs. 91,000 crore in Dholera, Gujarat. It focuses on high-performance compute chips and power management chips.

2. Semiconductor ATMP Unit by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT): An investment of Rs. 27,000 crore in Morigaon, Assam, specializing in advanced semiconductor packaging technologies.

3. Semiconductor ATMP Unit by CG Power: In partnership with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, investing Rs. 7,600 crore in Sanand, Gujarat. It will manufacture chips for consumer, industrial, automotive, and power applications.

Strategic Importance

• Establishment of Semiconductor Ecosystem: The India Semiconductor Mission has established a robust semiconductor ecosystem, positioning India as a global player.

• Chip Fabrication Capabilities: India aims to develop formidable capabilities in chip fabrication, enhancing its technological prowess and attracting investment.

• Indigenous Advanced Packaging Technologies: This marks the indigenous development of advanced packaging technologies, promoting innovation and self-reliance in semiconductor technology.

• Growth of Semiconductor Ecosystem: These milestones signify organic growth, fostering self-sufficiency, innovation, and economic prosperity.

• Employment Generation Potential: The units will generate 20,000 advanced technology jobs and 60,000 indirect jobs, accelerating employment creation in various industries.

India Semiconductor Mission (ISM)

About: Launched in 2021 with an outlay of Rs. 76,000 crore under the Ministry of Electronics and IT, ISM aims to support companies investing in semiconductors, display manufacturing, and design ecosystem.

Challenges Regarding Development of Semiconductors

• Infrastructure Development: Establishing manufacturing units requires robust infrastructure.

• Supply Chain Management: Developing an efficient supply chain is crucial.

• Technology Upgradation: Continuous innovation and investment in R&D are needed.

• Skilled Workforce: Addressing the shortage of skilled professionals is essential.

• Financial Support: Securing adequate financial support poses a challenge.

• International Competition: Competing with established players is a challenge.

Support by Other Nations

• Private Sector Investment: Units need private sector investment alongside government subsidy.

• US and Japan Support: The US and Japan provide significant subsidies for domestic semiconductor manufacturing.

Way Forward

• Infrastructure Development: Collaborate for tailored infrastructure development.

• Supply Chain Management: Implement advanced practices for efficiency.

• Investment in R&D: Encourage investment and collaboration in R&D.

• Skilled Workforce Development: Develop comprehensive training programs.

• Financial Incentives: Provide incentives to attract investment.

• International Collaboration: Collaborate for technology transfer and market access.