{"id":253693,"date":"2023-07-27T21:34:41","date_gmt":"2023-07-27T16:04:41","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=253693"},"modified":"2023-08-31T10:25:36","modified_gmt":"2023-08-31T04:55:36","slug":"elusive-quest-for-semiconductor-self-sufficiency","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/elusive-quest-for-semiconductor-self-sufficiency\/","title":{"rendered":"Elusive quest for semiconductor self-sufficiency"},"content":{"rendered":"\n

Source<\/strong>: The post is based on an article\u00a0\u201c<\/strong>Elusive quest for\u00a0semiconductor\u00a0self-sufficiency<\/strong>\u201d published in Mint <\/strong>on\u00a027th<\/sup> July 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS 3 \u2013 Indian Economy \u2013 Industrial Policy<\/strong><\/p>\n

Relevance: <\/strong>concerns associated with semiconductor industry in India<\/strong><\/p>\n

News: <\/strong>The demand for semiconductors is increasing exponentially. Countries are now focusing on self-reliance for accessing semiconductors due to pandemic-related supply disruptions and geopolitical tensions.<\/p>\n

What is the status of semiconductors in India?<\/strong><\/h2>\n

India, as a major electronics consumer, imports nearly all of its semiconductor requirements<\/strong>. India has also identified electronics manufacturing as a crucial sector to enhance growth and exports.<\/p>\n

However, since its dependence on imports, any disruption in the supply chain will impact India’s growth. Hence, India has been taking efforts to establish semiconductor fabrication unit in India.<\/p>\n

What efforts were made by India to establish semiconductor fab units?<\/strong><\/h2>\n

In 2006,<\/strong> the Andhra Pradesh government partnered with SemIndia for a $3 billion project, however, the project failed. In 2007,<\/strong> the Indian government tried to attract Intel Corporation, but the company invested in China and Vietnam.<\/p>\n

In 2014,<\/strong> two projects, one by JP Associates and the other by Hindustan Semiconductor Manufacturing Corporation, were approved by the Union Cabinet. However, both projects faced obstacles and were eventually dropped.<\/p>\n

What are challenges faced by India in the semiconductor industry?<\/strong><\/h2>\n

Read Here: <\/strong>Need of Indigenous Semiconductor Manufacturing Facilities in India<\/strong><\/a><\/p>\n

What was the outcome of the last efforts taken by India to set up fab units?<\/strong><\/h2>\n

The Centre under the PLI scheme, announced up to $10 billion in subsidies or 50% of the project cost, to attract semiconductor fab units in India.<\/p>\n

For this, three projects were approved:<\/strong> 1)<\/strong> Vedanta-Foxconn, 2)<\/strong> ISMC consortium with Tower Semiconductors from Israel, and 3)<\/strong> IGSS Ventures from Singapore. However, these projects have experienced limited progress.<\/p>\n

For instance,<\/strong> the Vedanta-Foxconn project collapsed. The ISMC project is on hold due to the merger of Tower Semiconductors and Intel, and IGSS is still in search of an Indian partner.<\/p>\n

Must Read: <\/strong>Semiconductor manufacturing in India: significance and challenges<\/strong><\/a><\/p>\n

What are the efforts being taken by other countries?<\/strong><\/h2>\n

The US has enacted<\/strong> the CHIPS Act, providing $280 billion in subsidies for chip research and production. Germany has announced<\/strong> subsidies worth $22 billion to encourage the establishment of fab units.<\/p>\n

The European Union has implemented<\/strong> the European Chips Act to enhance semiconductor production, and the UK has unveiled<\/strong> its own semiconductor strategy.<\/p>\n

\"\"<\/p>\n

Source:<\/strong> Mint<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on an article\u00a0\u201cElusive quest for\u00a0semiconductor\u00a0self-sufficiency\u201d published in Mint on\u00a027th July 2023. Syllabus: GS 3 \u2013 Indian Economy \u2013 Industrial Policy Relevance: concerns associated with semiconductor industry in India News: The demand for semiconductors is increasing exponentially. Countries are now focusing on self-reliance for accessing semiconductors due to pandemic-related supply disruptions… Continue reading Elusive quest for semiconductor self-sufficiency<\/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":[216,8184,11125],"class_list":["post-253693","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","tag-mint","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/253693","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=253693"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/253693\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=253693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=253693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=253693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}