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Transforming India's Technology Ecosystem: The Ascendancy of Semiconductors and Its Role in the India Semiconductor Mission

 


A Vision for Self-Reliance

The goal of Atmanirbhar Bharat, a self-sufficient India that prospers in innovation and technology, is the foundation of India's semiconductor journey. This change is being driven by the India Semiconductor Mission (ISM), which functions as a separate division under the Digital India Corporation. The ISM, which is headed by international experts and has administrative and financial autonomy, is committed to creating a sustainable ecosystem for the production of semiconductors and displays. Its purpose? to promote innovation, generate employment, and establish India as a world leader in electronics.

Key Objectives of the ISM:

  • Design and Manufacturing: Encourage innovative semiconductor fabrication and integrated circuit design.

  • Advanced Packaging: Gain proficiency in the assembly, testing, validation, and packaging of wafers.

  • Trusted Supply Chain: Establish a dependable supply chain for equipment, chemicals, gases, and raw materials.

  • Training a skilled workforce through workshops, certifications, and mentorship programs is known as skill development.

  • International Cooperation: Encourage alliances with foreign organizations for technology transfer, commercialization, and research.


The Semicon India Program: Fueling Growth

With a huge investment of ₹76,000 crore, the Semicon India Program is providing the financial foundation to make this vision a reality. Up to 50% funding is available through this program for projects such as:

  • Semiconductor fabs are establishments that manufacture semiconductor wafers.

  • Display Fabs: Production facilities for TFT/LCD screens.

  • Compound Semiconductors and Sensors: Discrete semiconductors, sensors, and silicon photonics facilities.

  • Advanced Packaging Units: Facilities for assembly, testing, marking, and packaging (ATMP).


Furthermore, by offering financial incentives and design infrastructure, the Design-Linked Incentive (DLI) Scheme promotes the development of chipsets, integrated circuits, system-on-chips, and intellectual property (IP) cores. This all-encompassing strategy guarantees the sustainability and innovation of India's semiconductor industry.

A New Milestone: The HCL-Foxconn Joint Venture

The newly authorized HCL-Foxconn semiconductor facility close to Zver Airport in Uttar Pradesh's Yamuna Expressway Industrial Development Authority (YEIDA) is a brilliant illustration of India's advancement. This unit will produce display driver chips, which are crucial parts for cell phones, laptops, cars, PCs, and other devices with screens, with an investment of ₹3,700 crore.

Key Highlights:

  • 36 million chips can be produced each month from 20,000 wafers.

  • Focus: Improving India's display manufacturing capabilities through advanced wafer-level packaging.

  • Impact: Lessens reliance on imports and enhances India's position in the global electronics supply chain.


This facility joins five others in advanced stages as the sixth semiconductor facility being built in India. When combined, these initiatives have the potential to revolutionize India's technological environment.

Building a Robust Ecosystem

India's semiconductor industry is thriving as a result of a multifaceted strategy:

  • Design Excellence: With 270 academic institutions and 70 startups developing cutting-edge technologies, top-notch design facilities have been established in several states. Interestingly, Mouldi has already developed and taped out 20 products.

  • Global Partnerships: To strengthen local capabilities, industry heavyweights like Lam Research and Applied Materials have established facilities in India.

  • Skill Development: To ensure a skilled workforce to propel the industry forward, the ISM is fostering talent through training programs, certifications, and mentorship.

Economic and Employment Impact

The push for semiconductors is revolutionizing the Indian economy. It is anticipated that the new units will produce:

  • 20,000 direct positions in cutting-edge technology.

  • 60,000 indirect jobs in industries like industrial manufacturing, electronics, automotive, and telecommunications.


India's semiconductor industry is driving economic growth and technological self-reliance by lowering dependency on imports, drawing in investments, and advancing industries like defense, healthcare, and automobiles.

Overcoming Challenges

India has historically faced several challenges in the semiconductor industry, such as competition from nations with well-established ecosystems and a lack of domestic manufacturing. By providing competitive incentives and encouraging collaborations with international players, the updated Semicon India Program tackles these issues. In order to keep India ahead of the competition for innovation, it also addresses the lack of businesses with cutting-edge node technologies.

India’s Global Ambition

The ISM aims to establish India as a global center for electronics design and manufacturing, not just to satisfy domestic demands. India is enhancing its position in international value chains by advancing its capabilities in chip fabrication, sophisticated packaging, and domestic intellectual property. Companies can display their knowledge, work together on research projects, and promote technological advancements at events like Semicon India.

The Road Ahead

The revolution in semiconductors in India is just getting started. The nation is poised to become a global leader in electronics thanks to a thriving design, manufacturing, and innovation ecosystem. A future where India not only satisfies its own technological demands but also supplies the world's gadgets with state-of-the-art chips and screens is being paved by the India Semiconductor Mission.


Participate in the process—through industry events, cooperative research, or skill-building initiatives—and help India become a semiconductor superpower!


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