Unlocking the Power of Semiconductors in India You Won’t Believe What’s upcoming 23-24
As a developed nations around the world eye supremacy in global semiconductor industry in Indian 23-24 market.in December 2021 P.M. Modi announced its $12 billion incentive Program to the semiconductor project to development of a semiconductor manufacturing ecosystem in India. this chip used mobile, laptop, computer ETC.
Semiconductor chips with Nanometer [nm] 65nm , 45nm, 28nm single silicon wafer the lesser the size the more advanced and expensive technology.
The importance was visible during the Covid- 19 pandemic when supply chain disruption brought automotive and consumer electronics industries across the world to a standstill.
The P.M. Modi government’s dream of aatma- nirbharta [Self-reliance] for which it has allocated production linked incentives [PLI’s] worth Rs. 2 lakh crore.
The market of semiconductors in India is expected to touch $72 billion by 2026.
Table of Contents
What is Semiconductor
Semiconductors are the thumb-nail-sized building blocks of almost every modern electronic device from smartphones to connected devices in the Internet of Things.
It contains millions of transistors packed onto a few millimeters of silicon the semiconductor.
Semiconductors allow electronics to function and operate, as well as make computations. That makes them vital for modern electronics.
Semiconductors are highly complex products to design and manufacture. They require a high level of investment in both R&D and capital expenditure.
History why India manufacturing semiconductor
India mission under Atma-Nirbharta India’s semiconductor industry would benefit domestic businesses by reducing their reliance on imports and by generating income from exports to other nations.
India has to grow its Information and Communications Technology [ICT] Industry in order to take advantage of the fourth industrial revolution. Semiconductors are crucial to this process are employed in vital infrastructures that affect national security, including transmission of power and communications.
India reducing reliance on other nations for essential technology, domestic semiconductor manufacture can increase the country’s strategic independence and lessen its susceptibility to supply chain disruptions. Development of the semiconductor and display ecosystem will have a multiplier effect on several economic sectors as it becomes more deeply integrated into the global value chain. The modern information age runs on semiconductor chips. They make it possible for electrical devices to compute and control operations that Reducing imports on Taiwan, Singapore, Hong Kong, Thailand, and Vietnam are the only countries from which India imports all of its chips.
WHAT IS THE ROLE OF Global semiconductor Industry
The global semiconductor industry is currently valued at $800-$1000 billion and caters to the global electronics industry currently valued at about $5 trillion. The Taiwan accounts for 93% of the world’s most advanced semiconductor manufacturing capacity, the Netherlands is the only country that produces chip-making machines and South Korea is one of the largest chip manufacturers.
Global Competition and the NEW ACT
It has also imposed additional restrictions and sanctions on the Chinese semiconductor industry.
The United States of America also passed the CHIPS Act
The last August 22, providing subsidies 50% of around $280 billion for manufacturing chips in the country.
EU chip Act
The European commission also approved its EU chip Act this year with a $49 billion subsidy package.
Taiwan Passed chip act
Taiwan lawmakers have passed new rules local chip firms turn 25% of the annual research and development expenses into tax 8 January 2023.
Two years ago, the world’s largest chip maker, Taiwan’s Semiconductor Manufacturing Company, which supplies to Apple, amongst others, pledged to reach net zero emissions by 2050.
MOU sing with India and US
yes signed MOU with India & USsemiconductor supply chain 7 to 10 march 2023 to discuss co-operation and open up new trade and investment opportunities between the two countries, collaborative two governments supply chain.
The US side send senior government official to led clean energy and environmental technology business development mission in India 2024. Indian government has also approved Rs.76000 crore scheme to boost semiconductor and display manufacturing in the country global hub for hi-tech production and attract large chop markers.
Any challenges in Semiconductor Manufacturing in India
The chip design component is highly dependent on Research and Development (R&D) and Intellectual Property (IP) protection, and hence extremely expensive.
Requires Huge investment Semiconductor manufacturing is a complex, capital and technology intensive process.
Semiconductor fabrication requires specific raw materials such as silicon, germanium, gallium arsenide, as well as chemicals and gases,that need to be imported.
Manufacturing a single chip requires hundreds of gallons of pure water, which is both difficult and unsustainable for India. Now the big Climate change like flooding, water stress and sea-level can damage manufacturing facilities. the semiconductor chip consume large amounts of water and generate hazardous waste.
India is not the only country that faces such a challenge. Taiwan, the current leader in semi-conductor manufacturing, is also threatened by erratic weather patterns.
CAN INDIA BECOME A SEMICONDUCTOR MANUFACTURING HUB upcoming day
Currently all of the world’s most advanced semiconductor manufacturing capacity. in just two countries South Korea (9%) and Taiwan (93%).
Skilled Labour
It requires highly skilled labour as the production of semiconductors as the fabrication process is intricate, involves 400- 1400 complex steps and requires highly specialized inputs like commodity chemicals, specialty chemicals as well as many different types of processing and testing equipment and tools, across a number of stages. For the process, the company requires highly skilled labour.
The production of semiconductor chips has to be done in clean areas as contaminated air particles could alter the properties of the materials that form the electronic circuits.
Huge capital investment
Manufacturing of semiconductor chips requires huge investments. the designs of chips change quite rapidly, these companies always have to invest in acquiring newer technologies to produce the chips.
For instance, the market leader in the industry, TSMC has announced that it will invest $100 billion in its fabrication plants over the next three years.
GOVERNMENT ACTION TO BOOST SEMICONDUCTOR MANUFACTURING IN INDIA 23-24
India has identified electronics manufacturing as a key sector to boost its growth in the coming years by producing goods not just for the domestic market, but also for exporting to the world.
Production-Linked Incentives to Attract Electronics Manufacturers. The government of India approved a $12 billion incentive plan.The product linked incentive plan aims to attract chip and display industries to the country, with the goal of making India a major hub for electronics manufacturing.
The plan is also aimed at reducing reliance on supplies from China, with which India has tense relations. It provides uniform fiscal support of 50 per cent of project cost for semiconductor fabs across technology nodes and display manufacturing.
Semi-con India Program
To foster the growth of the semiconductor and display manufacturing ecosystem in the country.
It aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystems. India Semiconductor Mission (ISM) It has been setup as an Independent Business Division within Digital India Corporation to drive long-term strategies for semiconductor design ecosystem in the country.
Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
It provides a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain including electronic components and semiconductors.
Modified Special Incentive Package Scheme (M-SIPS)
M-SIPS provides financial incentives for setting up new semiconductor manufacturing units in the country. Under the scheme, companies can get a subsidy of up to 25% of their capital expenditure.
SEWFAP
semiconductor Wafer FAB Acquisition Program (SEWFAP) provides financial assistance to Indian companies for acquiring semiconductor fabrication facilities (fabs) outside India.
Robust Policy
Foundry establishment requires a significant investment in capital, it must be backed by a sound long-term strategy and adequate funding. Both the government and the entrepreneur must provide this support.
Fiscal support
Tax holidays, subsidies, zero-duty policies, financial investments, etc., will be crucial in boosting the Fab and the semiconductor sector in India.
Infrastructure Support
A modern Fab needs to have access to world-class, sustainable infrastructure that includes things like quick transit, a lot of clean water, consistent electricity, communication, a clean environment, etc.
The India subsidy $ 12 billion with semiconductor sector, The most ambitious of these would have to be the one by Foxconn , announced as a joint Venture with billionaire Anil Agarwal Vedanta, IGSS venture in Tamil Nadu $3.5 billion [28nm & 45nm] project in July 2022. And ISMC Karnataka & Telangana $3 billion [65nm] project may 2022.
Gujarat become 1st Indian semiconductor policy
Gujarat semiconductor policy 2022-27 on 23 July 2023, the policy aim created at least 20 lakh new employment opportunities over the 5 year.
Vedanta Foxconn semiconductors limited [VFSL] as the joint venture was called ready to manufacture technology for its signed deals for investment of around $20 billion [28nm] in Gujarat in September 2022.
Conclusion
In Indian semiconductor industry manufacture increase supply chain, like Taiwan, Singapore, Hong Kong, Thailand, and Vietnam export the chip upcoming time. The US support to India send the senior government official to led clean energy and environmental technology business development mission with India 2024.
QA
CAN INDIA BECOME A SEMICONDUCTOR MANUFACTURING HUB upcoming 23-24
Yes
upcoming day India also export the semi-conductor chip market,The product linked incentive plan aims to attract chip and display industries to the country, with the goal of making India a major hub of manufacturing.
In India Job or employment opportunities for Semiconductor manufacturing industries
Yes
India job and employment opportunities boost to Indian semiconductor sector, announced as a joint Venture project with Tamil Nadu, Karnataka, Gujarat & Telangana policy aim created at least +20 lakh new employment opportunities over the 5-8 year.
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