A semiconductor vision beyond the shop floor, Pg12

Key Highlights:

• The Union Cabinet approved the second phase of the India Semiconductor Mission, shifting focus from manufacturing to building an innovation landscape.
• An outlay of Rs 1,27,500 crore has been announced to primarily facilitate semiconductor design, a high-value segment of the industry.
• The policy redirects fiscal support from fabrication units towards companies producing raw materials, speciality chemicals, and industrial gases.
• Subsidies of up to 75 per cent are offered for chip design, underscoring the emphasis on Research and Development (R&D).
• India aims to establish an ecosystem for manufacturing mature node chips (28 nm or larger), which constitute approximately 70% of global semiconductor demand.
• An aspirational goal is set to develop 7nm and 2nm chips within the next five years.

ISM 2.0.jpg

Detailed Insights:

• The second phase of the India Semiconductor Mission seeks to integrate chip design, equipment, materials, intellectual property, and advanced research into a cohesive industrial strategy.
• Countries can secure pivotal positions in global supply chains through expertise in chip architecture, verification, software, and intellectual property, even without advanced fabrication plants.
• The policy aligns with India's comparative advantages by focusing on mature node chips, which are essential for a wide range of applications including electronics, smartphones, power grids, and medical devices.
• The global semiconductor market has experienced significant disruptions due to factors like the Covid pandemic and ongoing tech rivalries, highlighting the strategic importance of the sector.
• Major global powers such as the US, China, South Korea, Taiwan, the Netherlands, and Japan leverage their semiconductor capabilities as strategic assets.
• Developing robust semiconductor capabilities necessitates reliable power infrastructure, precise logistics, predictable environmental clearances, and a substantial pool of skilled technicians.
• India aims to convert its existing strength in semiconductor design, evidenced by global firms' design centers in cities like Bengaluru, Hyderabad, Pune, and Noida, into world-class manufacturing capacity.
• The government's role is crucial as an enabler, fostering strong linkages between academia and industry, drawing parallels with successful models in Taiwan, South Korea, and the US.

Key Concepts Involved:

• India Semiconductor Mission: A government initiative aimed at fostering a robust semiconductor and display manufacturing ecosystem within India.
• Mature Node Chips: Semiconductor chips produced using established, larger process technologies, typically 28 nanometers (nm) or greater.
• Chip Design: The process of conceptualizing and creating the functional and physical specifications for integrated circuits or microchips.
• Intellectual Property (IP): Legal rights granted to creators for their original works, inventions, or designs, crucial for innovation in the semiconductor industry.