Data shared in parliament: Semiconductor imports rose by 18% to Rs.1.71L.Cr in 2023-24.
Why is semiconductor ecosystem needed?
- import dependence (supply chain disruption, lprice volatility, geopolitics)
- digital economy - IoT, edge, 6G
- strategic autonomy (defence, communication, surveillance), national security
- supply chain risks
- backdoor vulnerability
- Economic
- balance of trade
- domestic GDP growth
- high value job creation
- take advantage of friend-shoring, supply chain diversification by becoming alternative to china (geopolitical & economic opportunity)
- human capital development thru upskilling
- entrepreneurship
Process
flowchart TD A[Design] --> B[Materials] --> C[Fabrication] --> D[Assembly, Packaging] --> E[Electronics]
- India shines at design for various usecases
- CPU, GPU, SoC, telecom
- Fabrication - extremely capital intensive, complex; dependent on ultra pure materials, sophisticated machinery
- ATMP - assembly, testing, marking, packaging
- Materials, equipment
- ultra pure gases
- silicon wafers
- photoresistors
- packaging substrates
Challenges
- high capital intensity
- long gestation period
- absence of robust industrial ecosystem aroung semiconductor: wafer, specialty gases
- inconsistent availability of critical inputs (power, ultra clean water)
- governance: land acquisition, logistics
- high water requirement
- high carbon footprint
- toxic waste generation
- lack of trained workforce
- weak industry academia linkage
- tight export control regimes by other countries
Govt Initiatives
- Semicon India 2024: Rs.76,000Cr outlay
- Semiconductor Fabs Scheme
- Display Fabs Scheme
- Compound Semiconductor and ATMP/OSAT Scheme
- Design Linked Initiative
- Skill development programme
- PLI scheme for foundries
- India Semiconductor Mission - Institutional mechanism for implementing semiconductor strategy
- iCET with USA
Project examples
- Tata - Gujarat, Assam
- Micron, Kaynes - Gujarat