India Semiconductor Mission | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

What are the Key Highlights?

Overview: The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India has been initiated with a total allocation of Rs. 76,000 crore. The Union Cabinet granted approval to Micron's proposal for establishing a semiconductor unit in Sanand, Gujarat. Significant progress has been made in the construction of this unit, leading to the emergence of a robust semiconductor ecosystem in its vicinity.

Approved Semiconductor Units:

Semiconductor Fab with 50,000 wfsm (wafer starts per month) Capacity:

• Tata Electronics Private Limited (TEPL) will collaborate with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, to establish a semiconductor fab in Dholera, Gujarat.
• Investment: Rs. 91,000 crore.
• Technology Partner: PSMC, renowned for expertise in logic and memory foundry segments.
• Segments Covered: High-performance compute chips with 28 nm technology, power management chips for Electric vehicles (EV), telecom, defense, automotive, consumer electronics, display, power electronics, etc.

Semiconductor ATMP (Modified Assembly, Testing, Marking, and Packaging) unit in Assam:

• Tata Semiconductor Assembly and Test Pvt Ltd (“TSAT”) will set up this unit in Morigaon, Assam.
• Investment: Rs. 27,000 crore.
• Technology: Development of indigenous advanced semiconductor packaging technologies including flip chip and ISIP (Integrated System In Package) technologies.
• Capacity: 48 million per day.
• Segments Covered: Automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.

Semiconductor ATMP unit for specialized chips:

• CG Power, in collaboration with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, will establish this unit in Sanand, Gujarat.
• Investment: Rs. 7,600 crore.
• Technology Partner: Renesas, a leading semiconductor company specializing in microcontrollers, analog, power, and System on Chip (‘SoC)’ products.
• Segments Covered: Manufacturing chips for consumer, industrial, automotive, and power applications.
• Capacity: 15 million per day.

What is the Strategic Importance of Semiconductor Units?

Establishment of Semiconductor Ecosystem:

• The India Semiconductor Mission has achieved significant success in establishing a robust semiconductor ecosystem within a remarkably short timeframe.
• These achievements mark a pivotal moment in India's journey towards becoming a key player in the global semiconductor industry.

Development of Chip Fabrication Capabilities:

• India boasts deep expertise in chip design, and with the establishment of these semiconductor units, the country is poised to develop formidable capabilities in chip fabrication.
• This milestone not only enhances India's technological prowess but also positions it as a leading destination for semiconductor manufacturing.

Indigenous Development of Advanced Packaging Technologies:

1. This approval heralds the indigenous development of advanced packaging technologies in India.
2. This achievement underscores the country's commitment to innovation and self-reliance in critical areas of semiconductor technology.
3. By fostering homegrown expertise in advanced packaging, India strengthens its position as a trailblazer in the semiconductor landscape.

Fostering Growth of Semiconductor Ecosystem:

• The successes of the India Semiconductor Mission pave the way for the organic growth of the semiconductor ecosystem in India.
• These milestones signify a paradigm shift, propelling the nation towards greater self-sufficiency, technological innovation, and economic prosperity in the semiconductor domain.

Potential of the Employment Generation:

• These units will generate direct employment of 20 thousand advanced technology jobs and about 60 thousand indirect jobs.
• These units will accelerate employment creation in downstream automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing, and other semiconductor consuming industries.

What Challenges Exist in Semiconductor Development?

• Infrastructure Development: The establishment of semiconductor manufacturing units requires substantial infrastructure, including reliable power supply, water resources, transportation networks, and the availability of skilled labor.
• Supply Chain Management: Developing a robust and efficient supply chain for semiconductor manufacturing is crucial. Challenges include ensuring timely access to raw materials, effective logistics management, and minimizing disruptions in the supply chain.
• Technology Upgradation: The semiconductor industry evolves rapidly, demanding continuous innovation and investment in research and development (R&D). Keeping pace with global standards by upgrading technology poses challenges, particularly in terms of funding and accessing cutting-edge technologies.
• Skilled Workforce: Semiconductor manufacturing demands a highly skilled workforce proficient in chip design, fabrication, testing, and packaging. Challenges include shortages of skilled professionals and the necessity for specialized training programs to meet industry requirements.
• Financial Support: Establishing semiconductor manufacturing units involves significant investment in infrastructure, technology, and talent. Obtaining adequate financial support, including subsidies, tax incentives, and access to affordable financing, is challenging for industry players.
• International Competition: The semiconductor industry is intensely competitive globally, with established players dominating the market. Competing with international counterparts, particularly in technology, pricing, and market share, poses significant challenges for Indian semiconductor manufacturers.

Way Forward

• Infrastructure Development for Semiconductor Manufacturing: Governments and industry stakeholders should collaborate to invest in infrastructure development tailored to the needs of semiconductor manufacturing.
• Advanced Supply Chain Management Practices: Implementing advanced supply chain management practices, such as Just-In-Time inventory systems and strategic partnerships with suppliers, can enhance efficiency and resilience in the semiconductor supply chain.
• Investment in Research and Development: Encouraging investment in R&D and fostering collaborations between industry, academia, and research institutions can facilitate technology upgradation in the semiconductor sector.
• Skilled Workforce Development: Developing comprehensive training programs and educational initiatives focused on semiconductor technology can address the shortage of skilled professionals.
• Financial Incentives: Governments can provide financial incentives, such as tax breaks, subsidies, and low-interest loans, to attract investment in semiconductor manufacturing.
• International Collaboration: Collaborating with international partners can facilitate technology transfer, access to global markets, and knowledge sharing. Joint ventures, strategic alliances, and participation in industry consortia can help Indian semiconductor manufacturers compete effectively on the global stage.