{"id":208340,"date":"2022-09-27T20:39:00","date_gmt":"2022-09-27T15:09:00","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=208340"},"modified":"2022-09-27T20:39:00","modified_gmt":"2022-09-27T15:09:00","slug":"a-push-for-semiconductor-industry","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/a-push-for-semiconductor-industry\/","title":{"rendered":"A push for semiconductor industry"},"content":{"rendered":"\n<p><strong>Source<\/strong>&#8211; The post is based on the article <strong>\u201cA push for semiconductor industry\u201d <\/strong>published in <strong>The Hindu<\/strong> on <strong>27th September 2022<\/strong>.<\/p>\n<p><strong>Syllabus: <\/strong>GS3- Indian economy<\/p>\n<p><strong>Relevance<\/strong>&#8211; semiconductor manufacturing<\/p>\n<p><strong>News<\/strong>&#8211; The article explains the size of the semiconductor industry. It also talks about the Indian government scheme to promote semiconductor manufacturing in India and the challenges associated with the scheme.<\/p>\n<h5><strong>What about the semiconductor industry?<\/strong><\/h5>\n<p>Semiconductors are the building blocks of almost every modern electronic device from smartphones to connected devices in the Internet of Things.<\/p>\n<p>The chip-making process is complex and highly exact. It has multiple other steps in the supply chain that include-<\/p>\n<ul>\n<li>Designing software for chips and patenting them through core Intellectual Property rights.<\/li>\n<\/ul>\n<p>(b) Making chip-fabrication machines and setting up factories<\/p>\n<p><strong>\u00a0\u00a0\u00a0\u00a0 <\/strong>\u00a0(c)<strong> ATMP<\/strong> (assembly, testing, making and packaging).<\/p>\n<p>The chip-making industry is highly-concentrated. It is controlled by the big players like Taiwan, South Korea U.S. According to a New York Times estimate, 90% of 5nm chips are mass-produced in Taiwan.<\/p>\n<h5><strong>What are the changes introduced in the scheme?<\/strong><\/h5>\n<p>According to the Electronics and IT Ministry, semiconductor demand in India would increase to $70-$80 billion by 2026.<\/p>\n<p>In December 2021, India announced its $10 billion dollar production linked incentive (PLI) scheme to encourage semiconductor and display manufacturing in the country.<\/p>\n<p>It also announced fiscal support for a design-linked initiative (DLI) scheme for designing software, IP rights etc.<\/p>\n<p>The new changes in the scheme seek to harmonize government incentives for all technology nodes of semiconductors. The modified scheme provides uniform 50% fiscal support for all nodes. Besides, it will provide 50% of capital expenditure for other steps of the process as well (chip design and ATMP).<\/p>\n<h5><strong>What are the challenges?<\/strong><\/h5>\n<p><strong>Resources<\/strong>-Chip production is a resource-intensive and expensive process. The outlay of the scheme remains $10 billion. Just the setting up of one semiconductor factory requires an investment of anywhere between $3 and $7 billion. Little would be left to support other elements like packaging and testing facilities, and chip design centers.<\/p>\n<p>Initial funding should focus on areas like design and R&amp;D.<\/p>\n<p><strong>Water<\/strong>-Chip-making requires ultra-pure water. Government needs to provide it to chip making factories. It could create challenges for the government.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source&#8211; The post is based on the article \u201cA push for semiconductor industry\u201d published in The Hindu on 27th September 2022. Syllabus: GS3- Indian economy Relevance&#8211; semiconductor manufacturing News&#8211; The article explains the size of the semiconductor industry. It also talks about the Indian government scheme to promote semiconductor manufacturing in India and the challenges&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/a-push-for-semiconductor-industry\/\">Continue reading <span class=\"screen-reader-text\">A push for semiconductor industry<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10498],"class_list":["post-208340","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/208340","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=208340"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/208340\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=208340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=208340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=208340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}