By Santosh Kumar
India is undergoing a significant technological and industrial transformation, transitioning to an automated, process-driven manufacturing sector to enhance efficiency and productivity.
The government’s intent to transform India into a global electronics and semiconductor hub is aided by initiatives such as the Production-Linked Incentive (PLI) schemes, mega industrial corridors, and significant investments.
Along with these, India’s renewable energy drive, particularly in solar energy and EV adoption, puts the country at the forefront of clean energy technologies.
The SEMICON India 2024, which was held from September 11-13, 2024, at the India Exposition Mart, Greater Noida, turned out to be a landmark event in this direction, bringing together not only global leaders in the semiconductor space but also stakeholders from various high-tech industries.
With India emerging as a focal point for renewable energy, electric vehicles (EVs), and the National Green Hydrogen Mission, the discussions at the event on manufacturing, sustainability, workforce development, and government policies fostering innovation, shed light on its viability for the country.
India’s renewable energy, electric vehicles, and National Green Hydrogen Mission emerged as the focal points during the event, where discussions on manufacturing, sustainability, workforce development, and innovation-fostering government policies took place.
India Semiconductor Mission
Semiconductors, also known as integrated circuits (ICs) or microchips, are essential components of our daily lives because they play an important role in the production of electronics such as phones, computers, automobiles, planes, medical instruments, military weapons, home and kitchen appliances, and solar cells.
Semiconductor chips are found in all electronic instruments, helping to improve and evolve a wide range of applications including communications, computing devices, health care, military systems, transportation, and clean energy. Semiconductors are critical for sustaining cutting-edge technology and are expected to play an even greater role in the development of emerging technologies such as artificial intelligence (AI), 5G, the Internet of Things (IoT), smart cars and factories, robotics, and so on.
Recognizing the importance of a strong and comprehensive policy framework, the Union Cabinet approved the Semicon India plan in 2021, allocating INR 76,000 crore to establish a sustainable semiconductor and display ecosystem.
The Semicon India Program aims to boost semiconductor and display manufacturing by encouraging capital investments and technology collaborations. India has devised policies to assist all aspects of the semiconductor ecosystem, not just fabs, but also packaging, display wires, OSATs, sensors, and more.
India’s semiconductor ecosystem has gained substantial traction, with numerous landmark projects receiving approval. The first major project with Micron was approved for Rs 22,000 crore, while Tata’s joint venture with Taiwan’s Powerchip in Dholera is another notable example.. Currently, there are five such proposals, with a combined investment of over Rs 1.52 lakh crore.
The Union Cabinet recently approved Kaynes Semicon Pvt Ltd’s proposal to set up a semiconductor plant in Sanand, Gujarat. The projected facility will be built at an investment of Rs 3,300 crore. Its capacity will be 60 lakh chips per day. This unit’s chips will be used in a wide range of applications, including industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones.
Earlier, on February 29, 2024, the Union Cabinet approved the establishment of three semiconductor units under the ‘Development of Semiconductors and Display Manufacturing Ecosystems in India’ program.
- Semiconductor Fab with 50,000 wfsm capacity:
Tata Electronics Private Limited (TEPL) will set up a semiconductor factory in partnership with Powerchip Semiconductor Manufacturing Corp. (PSMC) of Taiwan. This fab will be constructed in Dholera, Gujarat, with a cost of Rs. 91,000 crore.
Capacity: 50,000 wafer starts per month (WSPM)
- Semiconductor ATMP unit in Assam:
Tata Semiconductor Assembly and Test Pvt Ltd (“TSAT”) will set up a semiconductor unit in Morigaon, Assam. This unit will be set up with an investment of Rs. 27,000 crore.
Capacity: 48 million per day
It is expected to generate 15,000 direct and 11,000-13,000 indirect jobs.
- Semiconductor ATMP unit for specialized chips:
CG Power, in partnership with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, will set up a semiconductor unit in Sanand, Gujarat. This unit will be set up with an investment of Rs. 7,600 crore.
Capacity: 15 million per day
- Micron Semiconductor Facility: Memory and Storage Products Sanad, Gujarat
Investment: A capital investment of Rs 22,516 crore with 50% fiscal support from the Government of India on a pari passu (equal-footing) basis.
Employment: expected to create up to 5,000 direct and 15,000 indirect job opportunities over the next five years.
India is expanding its semiconductor ecosystem by setting up units, improving chip design capabilities, and speeding employment creation in industries such as automotive, electronics, telecom, and industrial.
Source :https://pib.gov.in/PressNoteDetails.aspx?NoteId=152130&ModuleId=3
