India Semiconductor Mission: Semiconductors are materials that conduct electricity under specific circumstances, i.e., they need a medium to do so. They are pure materials with a mix of conductor and non-conductor qualities, however, occasionally impurities are introduced to boost conductivity. The Semiconductor Mission of India, is a significant initiative by the Indian government, that have a profound impact on the country’s technology sector.
In this article, we will study about the Semiconductor Mission of India, its challenges, impact on technology sector of India, components etc.
Table of Content
What is India Semiconductor Mission?
India Semiconductor Mission (ISM) is an independent Business Division that aims to build a vibrant semiconductor and display Scheme to enable India’s emergence as a global hub for electronics manufacturing and design.
About Semiconductor Mission
- The interaction with applicants under the Semiconductor Fab Scheme and Display Fab Scheme has been approved for this objective.
- This objective gives candidates the freedom to choose the best technology combination, applications, node production, etc.
- The mission also specifies the type and amount of financial aid that will be given to chosen candidates.
- These facilities process and create integrated circuits from raw silicon wafers.
- It is important to note that the government also announced a 76,000 crore incentive for semiconductor manufacture in India in the same month.
- The vision of this mission is to promote India’s development as a significant global hub for the production and design of electronics by fostering a robust semiconductor and display design and innovation ecosystem.
Opportunities for India
- By 2026 and 2030, India’s semiconductor consumption is projected to surpass $80 billion and reach $ 110 billion, respectively.
- Up to 20% of the world’s semiconductor design engineers come from India, which offers a remarkable skill pool for the field.
- India has a sizable domestic market and is closer to markets in Africa, the Middle East, and Europe.
- The semiconductor value chain would guarantee a multiplier impact on the whole economy.
Challenges of Semiconductor Mission
- Setting up a fab manufacturing plant will demand a significant investment.
- Chip fabrication facilities are also exceedingly thirsty, requiring millions of liters of pure water and an exceptionally reliable power source.
- More technical knowledge is required.
- Lack of effective trash disposal and insufficient logistics.
- Automakers would lose $110 billion in sales in 2021 as a result of chip shortages brought on the COVID-19.
- Conflict between Russia and Ukraine and its effects on raw material supply for the semiconductor value chain.
Components of the India Semiconductor Mission
There are Four Schemes under the Program
- Scheme for setting up of Semiconductor Fabs: Depending on the technology node, financial help for the construction of a silicon CMOS semiconductor fabrication facility. The plan, which aims to draw significant investments for the construction of semiconductor wafer production facilities, is projected to boost the industrial ecosystem and aid in the creation of a reliable value chain.
- Compound Semiconductors/ Silicon Photonics/ Sensors Fabrication Scheme and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT Facilities: It offers financial assistance equal to 30% of the capital expenditure investment for the establishment of facilities for compound semiconductors, silicon photonics (SIPH), sensors (including MEMS), semiconductor ATMP, and OSAT in India.
- Scheme for setting up of Display fabs: By providing financial support equal to up to 50% of project costs, it seeks to attract significant investment for the production of TFT LCD or AMOLED-based display panels ( subject to ceiling of INR 12,000 crore per Fab).
- Design Linked Incentive Scheme (DLI): It provides financial incentives in addition to design infrastructure assistance for semiconductor design at different phases of deployment for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), systems, and IP Cores.
Significance of the Semiconductor Scheme
- In the present geopolitical environment, reliable sources of semiconductors and displays are crucial for the protection of vital information infrastructure.
- In order to ensure India’s digital sovereignty, the authorized initiative would foster innovation and strengthen local capabilities.
- In order to capitalize on the nation’s demographic dividend, it will also provide chances for highly skilled jobs.
- Deeper integration into the global value chain and a multiplier impact across several economic sectors are both expected from the development of the semiconductor and display ecosystem.
Recent News about India Semiconductor Mission
- The government is focused on its important goal of creating the total semiconductor ecosystem and making sure that it in turn stimulates India’s fast growing electronics industry.
- The growth of the semiconductor and display manufacturing ecosystem in our nation will cost a total of INR 76,000 crore.
- The initiative intends to give businesses that invest in the semiconductor, display manufacturing, and design ecosystem financial help. This would open the door for India’s expanding participation in the global value chains for electronics.
Impact of Semiconductor Mission on Technology Sector of India
Here’s the Impact of Semiconductor Mission on the India’s Technology Sector
- Local Production: The mission aims to stimulate the local manufacturing of semiconductors, reducing dependency on imports.
- Supply Chain Security: By fostering domestic production, India can secure its semiconductor supply chain, crucial for various technology sectors.
- R&D Investments: The mission is expected to drive research and development in semiconductor technology, leading to innovations.
- Tech Startups and Ecosystem: Enhanced semiconductor capabilities can boost the startup ecosystem, particularly in electronics and IoT (Internet of Things).
- Economic Boost: The semiconductor industry has the potential to significantly contribute to India’s GDP.
- Employment Opportunities: The growth of this sector can create numerous jobs, from manufacturing to R&D.
- Electronics and Automotive: Semiconductors are vital for consumer electronics and the automotive industry, especially with the rise of electric vehicles.
- Telecommunications: Improved semiconductor infrastructure can bolster the telecommunications sector, including the rollout of 5G technology.
- Export Potential: India could become a significant player in the global semiconductor market, exporting to various countries.
- Strategic Autonomy: Reducing reliance on foreign sources for semiconductors enhances India’s strategic autonomy in technology.
- Investment Requirements: The mission requires substantial investment, both from the government and private sectors.
- Skilled Workforce: Developing a skilled workforce for this high-tech industry is crucial for its success.
- Sustainable Development: The mission aligns with sustainable development goals by promoting local manufacturing and reducing logistic footprints.
- Technological Sovereignty: It’s a step towards technological self-reliance, a key objective in India’s broader tech strategy.
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Conclusion – India Semiconductor Mission
India has come to the realization that relying only on international supply chains for something as crucial as semiconductor chips is not a prudent course of action. It’s a step in the right direction that the Cabinet decided to launch an India Semiconductor Mission, led by “global industry experts” to formulate long-term plans for the growth of the chip and display industries.
FAQs on India Semiconductor Mission
1. What are the objectives of the India Semiconductor Mission?
The key objectives include developing a strong semiconductor manufacturing industry, promoting cutting-edge research and innovation, and establishing India as a key player in the global semiconductor market. The mission aims to boost self-reliance in semiconductor production and cater to both domestic and international demand.
2. How does the India Semiconductor Mission plan to build a vibrant semiconductor industry?
The mission plans to achieve this by incentivizing semiconductor manufacturing in India, attracting foreign investment, fostering partnerships between academia and industry, and providing support for research and development. It also includes creating a conducive environment for semiconductor manufacturing and design companies to operate in India.
3. What is the role of the India Semiconductor Mission in the nation’s sustainable semiconductor and display ecosystem growth?
The mission’s role is to facilitate the growth of a sustainable semiconductor and display ecosystem by encouraging environmentally friendly practices, ensuring long-term resource availability, and promoting sustainable manufacturing techniques. It also focuses on creating a skilled workforce to sustain the growth of these sectors.
4. Is India’s semiconductor mission limited to meeting domestic requirements?
While meeting domestic requirements is a significant aspect, the mission is not limited to this. It also aims to position India as a significant player in the global semiconductor market, contributing to the international supply chain and exporting to other countries.
5. Can India truly become a global semiconductor hub?
Experts believe that India has the potential to become a global semiconductor hub, given its large market, skilled workforce, and growing focus on technology and manufacturing. However, achieving this status will require a sharp focus on ease of doing business, significant investment in infrastructure, and continued government support.
6. What are the challenges and requirements for India to succeed in the semiconductor industry?
Key challenges include high initial investment costs, competition from established global players, and the need for advanced technological capabilities. To succeed, India needs to invest in research and development, create a favorable policy environment, develop skilled human resources, and establish strong supply chain linkages.