{"id":43410,"date":"2025-05-15T21:02:40","date_gmt":"2025-05-15T15:32:40","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=43410"},"modified":"2025-05-15T21:02:53","modified_gmt":"2025-05-15T15:32:53","slug":"cabinet-approves-semiconductor-unit-uttar-pradesh","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/15-05-2025\/cabinet-approves-semiconductor-unit-uttar-pradesh","title":{"rendered":"Cabinet Approves Semiconductor Unit in Uttar Pradesh"},"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>The Union Cabinet approved the establishment of a Semiconductor Unit in Uttar Pradesh.\n<ul class=\"wp-block-list\">\n<li>It is the sixth project to receive approval under the<strong> India Semiconductor Mission.<\/strong><\/li>\n<\/ul>\n<\/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 unit approved is a joint venture of <strong>HCL and Foxconn<\/strong> and will attract investment of Rs 3,700 crore.\n<ul class=\"wp-block-list\">\n<li>Together they will set up a plant near Jewar airport in <strong>Yamuna Expressway Industrial Development Authority (YEIDA).<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>This plant will <strong>manufacture display driver chips<\/strong> for mobile phones, laptops, automobiles, PCs, and a myriad of other devices that have displays.<\/li>\n\n\n\n<li>The plant is designed for <strong>20,000 wafers per month. <\/strong>The design output capacity is <strong>36 million <\/strong>units per month.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>Plants Under India Semiconductor Mission<\/strong><br>&#8211; Four plants \u2013 including a fab and three assembly units \u2013 are in <strong>Gujarat <\/strong>and one assembly and packaging plant is under construction in <strong>Assam.<\/strong><br>&#8211; <strong>India&#8217;s other five semiconductor development projects <\/strong>are in;\u00a0<br>1. Micron Technology &#8211; Sanand, Gujarat.<br>2. Tata Electronics Pvt. Ltd. with PSMC (Taiwan) \u2013 Dholera, Gujarat<br>3. Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) &#8211; Morigaon, Assam.<br>4. CG Power, in partnership with Renesas Electronics Corporation, Japan and Stars Microelectronics, Thailand &#8211; Sanand, Gujarat.<br>5. Kaynes Semicon &#8211; Sanand, Gujarat.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is a Semiconductor?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Semiconductors also referred to as \u2018chips\u2019 are highly complex products to design and manufacture, providing the essential functionality for electronic devices to process, store and transmit data.\u00a0<\/li>\n\n\n\n<li>The chip comprises interconnections of <strong>transistors, diodes, capacitors<\/strong> and <strong>resistors<\/strong>, layered on a wafer sheet of silicon.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Significance of the project<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Job Creation:<\/strong> Semiconductor manufacturing facilities in India create many direct and indirect employment opportunities.<\/li>\n\n\n\n<li><strong>Reduced Dependence on Imports: <\/strong>Establishing\u00a0 more domestic semiconductor industries will enhance the country&#8217;s self-reliance and resilience in times of geopolitical tensions or disruptions in global supply chains.<\/li>\n\n\n\n<li><strong>Import Dependency: <\/strong>India imported \u20b91.71 lakh crore worth of semiconductors in 2024. Nearly 38% came from China.<\/li>\n\n\n\n<li><strong>Export Opportunities:<\/strong> India&#8217;s semiconductor market is projected to grow from $22 billion (2019) to $110 billion by 2030.\n<ul class=\"wp-block-list\">\n<li>Expected to account for 10% of global chip consumption, driven by demand in smartphones, 5G, EVs, AI, IoT.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Strategic Importance: <\/strong>Semiconductor chips are critical components in various strategic sectors such as defense, aerospace, and telecommunications.\n<ul class=\"wp-block-list\">\n<li>Having a domestic semiconductor industry ensures greater control over the supply chain and reduces vulnerabilities to disruptions or external pressures.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>India\u2019s R&amp;D Edge: <\/strong>India houses 20% of the world\u2019s semiconductor design engineers.\n<ul class=\"wp-block-list\">\n<li>Boosts skills and tech in AI, robotics, EVs, precision tools, and advanced electronics.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges faced by India&#8217;s semiconductor industry<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Countries <\/strong>like the US and EU, also sense the semiconductor opportunity and have rolled out more lucrative incentive schemes than India.<\/li>\n\n\n\n<li><strong>High capital cost: <\/strong>A fab facility can cost upwards of $5\u201310 billion.<\/li>\n\n\n\n<li><strong>Talent pool:<\/strong> While India is the biggest back office for design engineers of all major chip companies, skilled talent that can work on factory floors of a fabrication plant is still hard to come by.<\/li>\n\n\n\n<li><strong>Research and Development:<\/strong> India currently lacks research in semiconductor design, where the future of the chip is decided.<\/li>\n\n\n\n<li><strong>Power supply: <\/strong>An uninterrupted supply of power is central to the process, with just seconds of fluctuations or spikes causing millions in losses.<\/li>\n\n\n\n<li><strong>Water intensive: <\/strong>Chip-making requires gallons of ultrapure water in a single day.\u00a0<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Initiatives for Semiconductor Industry<\/strong><br>&#8211; <strong>The India Semiconductor Mission (ISM)<\/strong> aims to build a strong semiconductor and display ecosystem, positioning India as a global hub for electronics manufacturing and design, while serving as the nodal agency for the efficient and seamless implementation of semiconductor and display schemes.<br>&#8211; <strong>Production Linked Incentive scheme: <\/strong>Incentives are being provided for semiconductor design and packaging.<br>&#8211; <strong>QUAD Semiconductor Supply Chain Initiatives: <\/strong>To assess the capacity, pinpoint vulnerabilities, and enhance supply chain security for semiconductor and its critical components.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2128604\" rel=\"nofollow noopener\" target=\"_blank\"><strong>PIB<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">The Union Cabinet approved the establishment of a Semiconductor Unit in Uttar Pradesh.<\/li>\n<p><\/p>\n<h3><strong>What is a Semiconductor?<\/strong><\/h3>\n<li class=\"ms-5\">Job Creation: Semiconductor manufacturing facilities in India create many direct and indirect employment opportunities.<\/li>\n<li class=\"ms-5\">Reduced Dependence on Imports: Establishing\u00a0 more domestic semiconductor industries will enhance the country&#8217;s self-reliance and resilience in times of geopolitical tensions or disruptions in global supply chains.<\/li>\n<li class=\"ms-5\">Import Dependency: India imported \u20b91.71 lakh crore worth of semiconductors in 2024. Nearly 38% came from China.<\/li>\n<li class=\"ms-5\">Export Opportunities: India&#8217;s semiconductor market is projected to grow from $22 billion (2019) to $110 billion by 2030.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/15-05-2025\/cabinet-approves-semiconductor-unit-uttar-pradesh\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/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-43410","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\/43410","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=43410"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/43410\/revisions"}],"predecessor-version":[{"id":43429,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/43410\/revisions\/43429"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=43410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=43410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=43410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}