{"id":32287,"date":"2024-11-18T18:51:40","date_gmt":"2024-11-18T13:21:40","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=32287"},"modified":"2024-11-18T18:51:41","modified_gmt":"2024-11-18T13:21:41","slug":"indias-semiconductor-ecosystem","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/18-11-2024\/indias-semiconductor-ecosystem","title":{"rendered":"India\u2019s Semiconductor Ecosystem"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A Semiconductor Plant has been set up in Morigaon, Assam, projected for completion by mid-2025.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The project is set to become one of the <strong>premier manufacturing sites<\/strong>, and aligns with the nation\u2019s broader goal of <strong>establishing a self-sufficient semiconductor ecosystem.\u00a0<\/strong><\/li>\n\n\n\n<li>It is expected to produce up to <strong>48 million semiconductor chips per day<\/strong>.\u00a0<\/li>\n\n\n\n<li>It is designed to<strong> cater to essential sectors<\/strong> such as automotive, electric vehicles, telecommunications, and consumer electronics.<\/li>\n\n\n\n<li>It will <strong>serve both domestic and international markets<\/strong>, positioning India as a competitive force in the global semiconductor supply chain.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are Semiconductors?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Semiconductors are <strong>materials with electrical properties<\/strong> that fall between those of conductors (like metals) and insulators (like rubber).\n<ul class=\"wp-block-list\">\n<li>They have a unique ability<strong> to conduct electricity<\/strong> under certain conditions while acting as insulators under others.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>They are sometimes referred to as <strong>integrated circuits (ICs) or microchips<\/strong> made from pure elements, typically<strong> silicon or germanium.\u00a0<\/strong><\/li>\n\n\n\n<li>In a process called <strong>doping<\/strong>, small amounts of impurities are added to these pure elements, causing large changes in the <strong>conductivity <\/strong>of the material.<\/li>\n\n\n\n<li><strong>Applications:<\/strong> Semiconductors are used in a vast range of <strong>electronic devices.<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Transistors<\/strong>, which are fundamental components of modern electronic circuits, rely on semiconductor materials.\u00a0<\/li>\n\n\n\n<li>They act as <strong>switches or amplifiers<\/strong> in everything from computers to cell phones.\u00a0<\/li>\n\n\n\n<li>Semiconductors are also used in <strong>solar cells, LEDs, and integrated circuits.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Semiconductor Market<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Industry estimates place the Indian semiconductor market at approximately<strong> $38 billion in 2023,<\/strong> with projections indicating growth to<strong> $109 billion by 2030.<\/strong><\/li>\n\n\n\n<li>This growth is driven by <strong>strong demand and government initiatives<\/strong> like the production-linked incentive scheme.\u00a0<\/li>\n\n\n\n<li>According to a report by the India Electronics and Semiconductor Association and Counterpoint Research, <strong>mobile handsets and IT sectors<\/strong> are leading the market by contributing over<strong> 75 percent of revenues.\u00a0<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Need to Focus on Semiconductor Manufacturing<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Strategic Significance:<\/strong> Given their importance to the economy, <strong>semiconductors have become a key strategic industry sector<\/strong> for many countries, with governments and companies alike investing heavily in<strong> research and developmen<\/strong>t to maintain competitiveness and innovate.<\/li>\n\n\n\n<li><strong>Dependence on Global Supply Chain: <\/strong>A <strong>serious shortage of those chips in 2021<\/strong>, underlined how dependent the global industry is on a few key suppliers.\n<ul class=\"wp-block-list\">\n<li><strong>Taiwan <\/strong>is currently the world\u2019s largest chipmaker, holding approximately <strong>44%<\/strong> of global market share, followed by China (28%), South Korea (12%), the U.S. (6%) and Japan (2%)<\/li>\n\n\n\n<li>In an<strong> effort to cut that dependency<\/strong> governments are spending huge sums to <strong>create stronger domestic chip industries.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government Support<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Semicon India:<\/strong> The initiative is for the development of semiconductor and display manufacturing ecosystem in the country.\n<ul class=\"wp-block-list\">\n<li>The programme aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystem.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>India Semiconductor Mission: <\/strong>It functions as a dedicated division within the Digital India Corporation.\n<ul class=\"wp-block-list\">\n<li>Its main goal is to nurture a strong semiconductor and display ecosystem to position India as a prominent global player in electronics manufacturing and design.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>The government offers incentives for manufacturing setup in India:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Under the Semiconductor Fab Scheme, fiscal support of 50% of the project cost on an equal footing for all technology nodes.<\/li>\n\n\n\n<li>Under the Display Fab Scheme, fiscal support of 50% of the project cost on an equal footing basis.<\/li>\n\n\n\n<li>Under the Compound Semiconductor Scheme, fiscal support of 50% of the capital expenditure on an equal footing basis, including support for discrete semiconductor fabs.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Under the Chips to Startup (C2S) Programme<\/strong> being implemented at 113 academic institutions\/ R&amp;D organizations\/ Start-ups\/ MSMEs, 85,000 number of high-quality and qualified engineers are being trained in several areas.\u00a0<\/li>\n\n\n\n<li>In February 2024, the government approved the <strong>establishment of three semiconductor plants, two in Gujarat and one in Assam.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>With the <strong>rise of digital technologies<\/strong>, AI, IoT, and 5G, the demand for semiconductors is skyrocketing. India, with its burgeoning tech industry, is well-positioned to capitalize on this trend.<\/li>\n\n\n\n<li><strong>Foreign Investment: <\/strong>Major global players like Intel, TSMC, and others are exploring opportunities in India. This influx of foreign investment will help develop local expertise and infrastructure.<\/li>\n\n\n\n<li><strong>Startup Ecosystem: <\/strong>India has a vibrant startup ecosystem focused on semiconductor design and related technologies, fostering innovation and contributing to the overall growth of the sector.<\/li>\n\n\n\n<li><strong>Infrastructure Development:<\/strong> Improved infrastructure, including special economic zones (SEZs) for electronics manufacturing, is being established to facilitate the growth of the semiconductor industry.<\/li>\n\n\n\n<li><strong>Talent Pool:<\/strong> India boasts a large pool of engineering graduates and skilled professionals, which can support the workforce needs of the semiconductor sector.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/pib.gov.in\/PressReleasePage.aspx?PRID=2074074\" target=\"_blank\" rel=\"noopener\"><strong>PIB<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Semiconductor Plant has been set up in Morigaon, Assam, projected for completion by mid-2025.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-32287","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/32287","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=32287"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/32287\/revisions"}],"predecessor-version":[{"id":32288,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/32287\/revisions\/32288"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=32287"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=32287"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=32287"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}