India Semiconductor Mission takes shape to compete in international chipmaking race

With the global chip shortage, fueled by the Covid-19 pandemic and geopolitical circumstances, affecting a number of smartphone and automotive industries, the federal government has launched the “Semiconductor Mission” to verify a autonomy and provide an enhancement to India’s rapidly expanding electronics manufacturing and innovation ecosystem.

The Union Cupboard has authorized the ‘Semicon India’ scheme with total funding of Rs 76,000 crore as part of the development of the nation’s semiconductor manufacturing and entertainment ecosystem.

The main objective of the program is to offer financial assistance to companies that invest in semiconductors, show manufacturing and design atmosphere. This is expected to pave the way for India’s increased participation in international electronics value chains and to become a global center for semiconductor manufacturing.

Under this semiconductor initiative, 4 programs have been launched – e.g. Semiconductor Fabs Organizing Program India, Show Fabs India, Compound Semiconductors/Silicon Photonics/Sensors Fab and Semiconductor Meeting, Testing, Marking and Packaging (ATMP) / OSAT equipment in India and Design Linked Incentive (DLI) Scheme.

Through “India Semiconductor Mission” (ISM), the central government wishes to encourage the use of safe microelectronics and the establishment of a reliable supply chain of semiconductors, as well as unbaked supplies, chemical substances specialties, gases and manufacturing tools.

He also wants to promote and facilitate indigenous mental property (IP) technology, encourage, enable and incentivize applied science change (ToT) and collaborations with national and global organizations to catalyze analysis, commercialization and growth. capacities.

Subsequently, for global collaborations, critics suggest that India and Taiwan are in talks to establish a semiconductor manufacturing center in India. Taiwan is globally recognized for having the largest semiconductor company in the world, TSMC or Taiwan Semiconductor Manufacturing Firm.

What the consultants say

Deepak Pahwa, chief executive of Bry-Air, told News18 that the mission launched by the central authorities will help the country become the world’s center for semiconductor manufacturing. “India is gearing up for the event where with the right expertise, capacity, expertise and infrastructure, it could become the leader in semi manufacturing, design and innovation. -drivers,” Pahwa said.

“But as part of the mission, it is actually essential to deal with ancillary industries that can produce high quality finishing products that remain unrivaled in the world. Failure to meet exact manufacturing conditions will be charged for substandard semiconductors that could harm the country’s standing in the international market,” Pahwa added.

Since parts of a semiconductor are hygroscopic in nature, moisture can have a corrosive impact and trigger chip failure. Thereafter, the government should build a “highly efficient and extremely resilient manufacturing base”, Pahwa said.

Another trade professional, Sonny Kunnakkat, Managing Director, Global Operations, Utilized Supplies India Personal Ltd said that due to the ubiquity of expertise and massive developments such as 5G, EV and AI, chips are more important than ever to the world.

He believes each of them shows the essential importance of the India Semiconductor mission in creating the country’s electronics manufacturing ecosystem.

According to him: “Working closely with ISM, we find that the PLI program for semiconductor manufacturing and shows has inspired companies in these segments in India to develop indigenous electronics manufacturing, which is a very constructive.”

“These companies need a robust ecosystem of high-quality supplies, unique processes, modern tools and world-class analytics. We are thrilled to see ISM looking to identify and help a neighborhood provide a talented channel and pool of expertise, so the ecosystem can sustain itself for years to come,” added the professional.

Sanjay Gupta (India Director), Vice President and General Manager India, NXP Semiconductors, said, “With ISM taking India management within the expertise company to the Next, we are moving completely towards financial independence and giving India a whole new face on the global manufacturing map.

He noted that many countries are considering collaborating with India to manufacture the chips needed for electronic devices, communication units, healthcare systems and automobiles.

Gupta added, “Thanks to the efforts of governments, companies are submitting targets for semiconductors and posting manufacturing models revealing how India is progressing to become the center of semiconductor manufacturing.”

India joins the race

At present, Asian players from mainland China, Taiwan and South Korea hold a monopoly in the chip manufacturing market. After a sudden shock that these players faced at the peak of the pandemic, all these countries are now ramping up their chip manufacturing capabilities and also investing tens of billions of dollars in the business.

Meanwhile, the United States has authorized its most anticipated CHIPS law to expand semiconductor manufacturing in the country, investing more than $52 billion in a bid to tackle the chip-making power of China. China and to improve its own economic system.

However, India can also participate in this race now. During Digital India Week-2022, which took place in early July, Prime Minister Narendra Modi acknowledged that India wants to become a “chipmaker of a chip-taker”.

During his speech, Modi acknowledged, “At this time, India is committed to growing electronics production to over $300 billion in the next 3-4 years. India wants to become a chipmaker of a chipmaker. Funding is growing rapidly in India to expand semiconductor manufacturing.

Initiatives taken by States

It should be noted that in early July, the Minister of Electronics, IT/BT, Science and Skills of Karnataka, Dr. CN Ashwath Narayan, urged buyers to avail of “reform cover open land” from state authorities to help the semiconductor business thrive.

At the ‘Semiconductor Trade Join 2022’ in Karnataka, the minister also said to develop Electronic Systems Design and Manufacturing, Enhancement Capabilities (ESDM), state authorities are planning to establish a fleet of semiconductors and a test laboratory.

Additionally, Karnataka, which launched its semiconductor coverage in 2008-2009, and the mostly Israel-based Worldwide Semiconductor Consortium (ISMC), signed a memorandum of understanding (MoU) earlier this year to speculate out of a total of Rs 22,900 crore in the state. to build the country’s main and largest semiconductor chip manufacturing plant.

However, the government of Gujarat recently introduced the “Gujarat Semiconductor Blanket 2022-2027” to attract funds in the chip manufacturing sector in Gujarat under ISM.

Minister of Science and Skills Division of Gujarat, Jitu Vaghani, said that the state authorities will offer additional aid at a price equal to 40% of the capital aid provided by the center for the tasks authorized by ISM under the Ministry of Electronics and Data Knowledge. How? ‘Or’ What.

It was also stated under the cover, Dholera Semicon Metropolis will be established in the Dholera Special Funding Area (Dholera SIR), and eligible projects will receive grants of up to 50% for additional land needed for manufacturing work, upstream/downstream and others. tasks authorized under the ISM, in addition to 75% for the first 200 acres of land they purchase.

Even in Maharashtra, this week, major miner Vedanta and Taiwanese electronics producer Foxconn met Chief Minister Eknath Shinde and his deputy Devendra Fadnavis to suggest funding of Rs 1,742,290,000,000.00 (22 billion dollars) in a semiconductor production plant that could generate around 200,000 jobs. .

It has been reported that Talegaon in Pune has become a prime candidate for the job due to its excessive focus on skilled manpower, port accessibility and industrial infrastructure, among other issues.

State and Center initiatives show that India is capable of meeting its targets and attracting additional companies to invest in the country.

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