The government has further approved a production-linked incentive (PLI) scheme of INR 760 billion for the Semicon India Programme for Development of the Semiconductors and Display Manufacturing Ecosystem in India. ISM will promote national and international collaborations and partnerships and skill development and facilitate Intellectual Property (IP) generation and enable the Transfer of Technologies (ToT). India Semiconductor Mission (ISM) is an independent business division within the Digital India Corporation with financial and administrative freedom to devise and manoeuvre long-term objectives for the development of semiconductors and display manufacturing facilities and the semiconductor design ecosystem in India. To oversee this, the government set up the India Semiconductor Mission as an institution dedicated to the Semicon India Program. Semiconductor manufacturing is a complex, capital, time, and technology-intensive process of fabricating semiconductor wafers (Fabs). Further, India has proclaimed its aspirations of becoming a key global leader in semiconductor manufacturing by ramping up manufacturing and design development through a slew of new initiatives. Working on the slogan of ‘Jai Vigyan, Jai Anusandhan’ the government envisions making India autonomous in the semiconductor chips research, development, and manufacturing space. Since semiconductors manufacturing is critical for meeting the strategic needs of the country the government has thus accorded a high priority to the electronics hardware manufacturing sector and has accelerated the movement towards Make in India, Make for India, and Make for the World. Unlocking this potential would require enablers such as ease of operations, the release of capital flow, supporting digital innovators, strengthening centers of higher education, innovation in new and emerging technologies like AI, and facilitating a booming open-API ecosystem. The sheer dependency of India on imports for fulfilling the domestic demand and the crunch in semiconductors imports crippled the manufacturing sector, particularly the mobile and automobile.Ī recent report on India’s Trillion Dollar Digital Opportunity, released by Ministry of Electronics & Information Technology (MeitY) stated that India could create up to $1 trillion of economic value from the digital economy by the year 2025 which could support 55-60 million workers. The supply of semiconductors was further derailed by the United States-China trade wars. However, in recent times, grave interruptions in the global supply chain system of semiconductors due to the Covid-19 pandemic have led to an acute shortage forcing various companies catering to different sectors to either shut shop or curtail production. The Indian semiconductor market was valued at $15 billion in 2020 and is expected to reach $63 billion by 2026. Despite being the global leader in semiconductor chip design, India imports 100% of its semiconductors. Semiconductors are vital for sustaining state-of-the-art technology and are forecasted to play an even enhanced role with the development of new technologies like artificial intelligence (AI), 5G, Internet of Things (IoT), smart cars and factories, robotics, etc.Ĭurrently, India imports a staggering $2.38 billion of semiconductor devices from countries like China, Singapore, Hong Kong, Japan, and the United States. The use of semiconductor chips is ubiquitous in all electronic instruments aiding in improvements and evolution in innumerable applications such as communications, computing, health care, military systems, transportation, and clean energy. Electronics are acknowledged as a ‘meta-source’ globally and enable an increase in productivity, boost infrastructure development, improve the efficiency of service dispensation, and revolutionise society. The electronics industry is an expansive and rapidly growing sector with a multitude of applications. At times they are laced with a minuscule amount of impurities such as arsenic (As), antimony (Sb), phosphorous (P), indium (In), boron (B), or aluminium (Al) to exponentially increase the conductivity. They are composed of pure silicon (Si), germanium (Ge), or gallium arsenide. Semiconductors are substances with conductivity and resistivity bordering both conductors and insulators and possess specific electrical properties. Semiconductors, also known as integrated circuits (ICs) or microchips are essential components of our day-to-day lives due to their integral role in the fabrication of electronics like phones, computers, automobiles, planes, medical instruments, military weapons, home and kitchen appliances, solar cells, etc. Technology, as we know it today, would not be imaginable without semiconductors because they craft the existence of electronic devices and enhance the compactness and power of these devices while also diminishing their price.
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