{"id":38617,"date":"2025-03-06T18:42:48","date_gmt":"2025-03-06T13:12:48","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=38617"},"modified":"2025-03-06T18:42:49","modified_gmt":"2025-03-06T13:12:49","slug":"india-first-commercial-semiconductor-fab-unit","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/06-03-2025\/india-first-commercial-semiconductor-fab-unit","title":{"rendered":"India\u2019s First Commercial Semiconductor Fab Unit"},"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>India Semiconductor Mission (ISM), Tata Electronics, and Tata Semiconductor Manufacturing signed a <strong>Fiscal<\/strong><strong> Support Agreement (FSA)<\/strong> for <strong>India\u2019s first commercial semiconductor fab in Dholera, Gujarat.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>More About the News<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Taiwan\u2019s<\/strong><strong> Powerchip is collaborat<\/strong><strong>ing<\/strong>, focusing on automotive, computing, communications, and AI markets.\n<ul class=\"wp-block-list\">\n<li>This will <strong>attract fab construction companies from Taiwan to Gujarat.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The <strong>$11 billion Tata-PSMC fab<\/strong> is <strong>one of five semiconductor projects <\/strong>approved under the<strong> India Semiconductor Mission (ISM).\u00a0<\/strong><\/li>\n\n\n\n<li>Four <strong>additional semiconductor projects <\/strong>are under construction, including by <strong>Micron, Tata, CG Power (with Renesas), and Kaynes Semicon.<\/strong><\/li>\n\n\n\n<li>The agreement <strong>strengthens India\u2019s self-reliance in semiconductor<\/strong> and display manufacturing.<\/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 have <strong>electrical properties between conductors (metals) and insulators (rubber).<\/strong>\n<ul class=\"wp-block-list\">\n<li>They conduct electricity under certain conditions and act as insulators under others.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Often made from silicon or germanium, semiconductors are also known as <strong>integrated circuits (ICs) or microchips.<\/strong>\n<ul class=\"wp-block-list\">\n<li>Doping involves adding impurities to change the material&#8217;s conductivity.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Applications:<\/strong> Semiconductors are used in various electronic devices, including transistors, which function as switches or amplifiers.\n<ul class=\"wp-block-list\">\n<li>They are crucial in computers, cell phones, solar cells, LEDs, and integrated circuits.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Significance of Semiconductor Manufacturing<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img data-dominant-color=\"b4b1ba\" data-has-transparency=\"true\" loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"566\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Significance-of-Semiconductor-Manufacturing-1024x566.png\" alt=\"Significance of Semiconductor Manufacturing\" class=\"has-transparency wp-image-38618\" style=\"--dominant-color: #b4b1ba; width:422px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Significance-of-Semiconductor-Manufacturing-1024x566.png 1024w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Significance-of-Semiconductor-Manufacturing-300x166.png 300w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Significance-of-Semiconductor-Manufacturing-768x424.png 768w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Significance-of-Semiconductor-Manufacturing-1536x848.png 1536w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Significance-of-Semiconductor-Manufacturing.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>India Semiconductor Mission (ISM) (2021)<\/strong><br>&#8211; It functions as a dedicated business division within the <strong>Digital India Corporation.<\/strong><br>&#8211; <strong>Objective: <\/strong>To develop a robust semiconductor ecosystem in India, reducing dependency on imports and strengthening technological self-reliance.<br>&#8211; <strong>Government Support:<\/strong> The Indian government has committed 50% fiscal support for eligible project costs under ISM.<br>&#8211; <strong>Global Collaboration:<\/strong> The mission encourages collaborations with international companies like Taiwan&#8217;s Powerchip and Micron Technology.\u00a0<br><strong>PLI (Production Linked Incentive) Scheme<\/strong><br>&#8211; Encourages domestic chip manufacturing with 4%-6% incentives.<br><strong>SPECS (Scheme for Promotion of Manufacturing of Electronic Components &amp; Semiconductors)<\/strong><br>&#8211; Supports electronic components &amp; semiconductors<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges in Semiconductor Manufacturing<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img data-dominant-color=\"eef0e9\" data-has-transparency=\"true\" loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"729\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Challenges-in-Semiconductor-Manufacturing-1024x729.png\" alt=\"Challenges in Semiconductor Manufacturing\" class=\"has-transparency wp-image-38619\" style=\"--dominant-color: #eef0e9; width:404px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Challenges-in-Semiconductor-Manufacturing-1024x729.png 1024w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Challenges-in-Semiconductor-Manufacturing-300x214.png 300w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Challenges-in-Semiconductor-Manufacturing-768x547.png 768w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Challenges-in-Semiconductor-Manufacturing-1536x1094.png 1536w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Challenges-in-Semiconductor-Manufacturing.png 1994w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Why is there an Increased focus on Semiconductors?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Strategic Importance:<\/strong> Semiconductors are crucial for the economy, driving technology, defense, and industrial growth.<\/li>\n\n\n\n<li><strong>Supply Chain Vulnerability:<\/strong> The 2021 chip shortage highlighted global dependence on a few key suppliers.<\/li>\n\n\n\n<li><strong>Taiwan\u2019s Dominance: <\/strong>Taiwan is the world\u2019s largest chip manufacturer, controlling a major share of production.<\/li>\n\n\n\n<li><strong>India\u2019s Ambition:<\/strong> India aims to become a significant player in semiconductor manufacturing.<\/li>\n\n\n\n<li><strong>Geopolitical Competition: <\/strong>Rising tensions with China are pushing countries to diversify chip production.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"e8d9d0\" data-has-transparency=\"true\" loading=\"lazy\" decoding=\"async\" width=\"760\" height=\"372\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Why-is-there-an-Increased-focus-on-Semiconductors.png\" alt=\"export import of semiconductor devices\" class=\"has-transparency wp-image-38620\" style=\"--dominant-color: #e8d9d0; width:424px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Why-is-there-an-Increased-focus-on-Semiconductors.png 760w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Why-is-there-an-Increased-focus-on-Semiconductors-300x147.png 300w\" sizes=\"auto, (max-width: 760px) 100vw, 760px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img data-dominant-color=\"080905\" data-has-transparency=\"true\" loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"304\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Way-Ahead-1024x304.png\" alt=\"India\u2019s First Commercial Semiconductor Fab Unit\" class=\"has-transparency wp-image-38621\" style=\"--dominant-color: #080905; width:552px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Way-Ahead-1024x304.png 1024w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Way-Ahead-300x89.png 300w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Way-Ahead-768x228.png 768w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Way-Ahead-1536x456.png 1536w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/Way-Ahead.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/companies\/fab-construction-suppliers-taiwan-dholera-powerchip-9870577\/\" rel=\"nofollow noopener\" target=\"_blank\"><strong>IE<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India Semiconductor Mission (ISM), Tata Electronics, and Tata Semiconductor Manufacturing signed a Fiscal Support Agreement (FSA) for India\u2019s first commercial semiconductor fab in Dholera, Gujarat.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-38617","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\/38617","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\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=38617"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/38617\/revisions"}],"predecessor-version":[{"id":38623,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/38617\/revisions\/38623"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=38617"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=38617"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=38617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}