Semiconductors act as the brains of modern technology. It is found in every smartphone, laptop, and even many complicated defence systems use semiconductor chips. The production market of semiconductors used to be controlled by a few countries who had an upperhand in technology like Taiwan, South Korea, China etc. However, due to the importance of this technology, India has initiated to become one of the global semiconductor production hub.
Why is it important?
Semiconductor chips are used in every modern technology, but its manufacturing is limited to some countries, which poses a threat of disruption to the global supply chain of the chips. The world's growing demand for electronic equipment and the use of these chips in defence equipment make it important with its lack of supply. During the COVID-19 pandemic, global chip shortage affected the smartphone and automobile industries of both India and the world. This showed the necessity of local production and risk of the dependency on imports of the chips. If India becomes a semiconductor manufacturing hub, it can reduce dependence on imports, and will help India to gain a position in the global technology supply chain.
The current scenario: Moving from blueprint to production
India, a country with the highest number of skilled engineers and IT professionals has a major advantage in human resources. It also has technology driven parks in Bengaluru and Hyderabad which already contributes to the making of designs of such chips. But, only designing the chips is not enough; it should be manufactured locally too. For this, the Indian government launched the “India Semiconductor Mission (ISM) in 2021. Under the mission, the government has guaranteed the establishment of semiconductor fabrication plants and its testing, recently advancing into ISM 2.0 to focus on equipment, strengthening the supply chain and establishing training centres to develop a highly skilled workforce.
Under the scheme, approximately 10 major semiconductor projects have been approved across various states like Gujarat, Maharashtra, Rajasthan and Odisha, committing investments of around ?1.6 lakh crores, operating under the Ministry of Electronics and Information Technology to establish a robust manufacturing and supply ecosystem.
The challenges Ahead
- Complex infrastructure - Manufacturing semiconductors requires a vast infrastructure plant, called fab, which can cost billions of dollars and it requires uninterrupted water supply to rinse the atomic level contaminants during manufacturing steps.
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Controlled supply chain - The global supply chain of semiconductors is highly controlled by a few countries and companies dominating the supply chain. To enter the supply chain, India should provide an uninterrupted supply of semiconductors in the global arena.
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Highly skilled workforce - Semiconductor production requires highly skilled workers which India can achieve by focusing on skill development through IIT’s and IISc.
So in conclusion, can India become a semiconductor manufacturing hub? The answer is yes - but not in a single night, it requires a perfectly laid plan with stages to improve the infrastructure, investment, government support, and through consistent policies in innovation. The long term planning can help India in becoming a global semiconductor manufacturer.