Source– The post is based on the article “India’s semiconductor mission might need a compass” published in “The Hindu” on 1st April 2023.
Syllabus: GS2- Indian Economy
Relevance– Electronics manufacturing
News– The United States Department of Commerce and its Indian counterpart have recently concluded a memorandum of understanding in March 2023 to ensure that subsidies by each country does not impact India’s semiconductor mission.
What are issues with existing institutional structure for semiconductor manufacturing in India?
The Semi Conductor Laboratory (SCL) was set up in Mohali in 1983 by the then central government, with the vision of creating an electronics ecosystem in India.
However, the opening up of markets for consumer goods in 1991 and a fire that broke out in 1989 at the SCL, dashed these hopes.
The facility has not been successful in creating a domestic semiconductor ecosystem.
What is the way forward for the semiconductor mission of India?
The institutional framework already exists. SCL has been transferred back to the Ministry of Electronics and Information Technology (MeITY), as part of the new semiconductor policy announced in December 2021. However, no joint venture partner has been found.
During this period, the focus at MeITY seems aimed at attracting Intel into India to set up a fab. However, Intel primarily operates at <22nm node and 300mm. It requires over $10 billion in upgrade cost to the SCL.
An alternate approach could be to leverage human and capital assets at the SCL to build on existing base in a targeted manner, by taking advantage of recent technological breakthroughs in a class of semiconductors that do not need advanced lithography equipment.
The segment of >180 nm node involves mixed signal analog, wide bandgap (GaN, GaAs, Silicon Carbide) for RF and power markets leveraging existing lithography capability already in place at the SCL.
In this scenario, an investment of $50-$100 million may result in the development of Indian solutions for automotive electronics, PVInverters, 5G infrapower amplifiers, railway electronics.
However, the upgrade has to be backed by subsidies aimed at fabless design houses with proven design willing to fabricate at the SCL in the 180 nm+ node.
The subsidies have to be aimed at global design companies with products aimed at India specific markets such as motor drives for BLDC fans or ebike chargers.
The recent efforts by the India Semiconductor Mission to open up subsidies to global small andmedium sized enterprises in the upstream supply chain are welcome. Existing facilities like the SCL will benefit from this. But this should be coupled with more incentives.
The SCL needs a full time director with field experience rather than a career scientist from the Department of Space.
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