{"id":253999,"date":"2023-07-29T20:59:28","date_gmt":"2023-07-29T15:29:28","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=253999"},"modified":"2023-08-31T10:09:23","modified_gmt":"2023-08-31T04:39:23","slug":"semicon-india-2023-how-governments-support-and-will-built-the-semiconductor-industry","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/semicon-india-2023-how-governments-support-and-will-built-the-semiconductor-industry\/","title":{"rendered":"Semicon India 2023: How government\u2019s support and will built the semiconductor industry"},"content":{"rendered":"\n

Source:<\/strong> The post is based on the article \u201cSemicon India 2023: How government\u2019s support and will built the semiconductor industry<\/strong>\u201d published in \u201cThe Indian express\u201d on 29th July 2023.<\/p>\n

Syllabus:<\/strong> GS3- Effects of liberalisation on the economy, changes in industrial policy and their effects on industrial growth.<\/p>\n

News:<\/strong> In this article author discusses India’s past missed opportunities in the semiconductor industry and highlights the current government’s efforts, through the India Semiconductor Mission (ISM), to develop a domestic semiconductor ecosystem, attract global investments, and position India as a leading player in the global semiconductor market.<\/p>\n

What are the government’s initiatives to support the domestic semiconductor ecosystem?<\/strong><\/h2>\n

India Semiconductor Mission (ISM):<\/strong> Launched in December 2021 to boost the domestic industry.<\/p>\n

Fiscal Support:<\/strong> Committed unprecedented fiscal incentives to attract global interest.<\/p>\n

Regulatory Assistance:<\/strong> Offering regulatory support to facilitate industry growth.<\/p>\n

Design Linked Incentive (DLI):<\/strong> Supporting startups through incentives tied to semiconductor design.<\/p>\n

Semiconductor Complex Limited (SCL) Revival:<\/strong> Approved modernization of SCL in Chandigarh, turning it into a chip manufacturing unit.<\/p>\n

International Collaborations:<\/strong> Signed agreements with the US and Japan for cooperation on semiconductor development, manufacturing, and research.<\/p>\n

Micron’s Proposal Approval:<\/strong> Sanctioned Micron’s proposal to set up semiconductor packaging and testing in India.<\/p>\n

Fiscal Incentives:<\/strong> Providing competitive fiscal benefits to rival major global economies.<\/p>\n

Strengthening the Value Chain:<\/strong> Impetus given across the value chain, from design to final assembly and testing.<\/p>\n

Strategic Vision:<\/strong> Demonstrating clear understanding and commitment to the semiconductor industry’s importance.<\/p>\n

Why does India need a robust domestic semiconductor ecosystem?<\/strong><\/h2>\n

Economic Boost:<\/strong> Enhances economic growth and job creation.<\/p>\n

Reduced Dependence:<\/strong> Decreases reliance on semiconductor imports.<\/p>\n

Resilience:<\/strong> Protects domestic industries from global supply chain disruptions.<\/p>\n

National Security:<\/strong> Safeguards “digital sovereignty” in today’s digital age.<\/p>\n

Global Attraction:<\/strong> Draws investments from leading semiconductor companies worldwide.<\/p>\n

Strategic Positioning:<\/strong> Places India as a leader in the global semiconductor value chain.<\/p>\n

Policy Leverage: <\/strong>Allows India to set its terms in global trade and tech agreements.<\/p>\n

Innovation Drive:<\/strong> Encourages research, design, and talent development in tech fields.<\/p>\n

Sustainability:<\/strong> Opportunities to pioneer green technologies in manufacturing.<\/p>\n

Competitive Edge:<\/strong> India can compete with major economies by offering favorable incentives.<\/p>\n

Catalyst for Other Sectors:<\/strong> Powers growth in electronics, computing, and other industries.<\/p>\n

Why did India miss the previous opportunities in the field of semiconductors?<\/strong><\/h2>\n

The Fairchild Semiconductor fab opportunity was missed in the 60s.<\/p>\n

Bureaucratic hurdles deterred global semiconductor companies in the mid-2000s.<\/p>\n

India didn’t secure Intel’s expansion in the late 2000s, which went to Vietnam.<\/p>\n

Bharat Electronics Ltd (BEL) couldn’t achieve the needed volume or state-of-the-art technology.<\/p>\n

India’s VLSI plant in Chandigarh, which began before Taiwan’s industry, shut down after a 1989 fire and wasn’t promptly reopened.<\/p>\n

Lack of strategic vision and consistent policy hindered progress.<\/p>\n

What should be done?<\/strong><\/h2>\n

Consistent Policy Interventions:<\/strong> Address past policy failures and create a clear, strategic vision.<\/p>\n

Enhance Infrastructure:<\/strong> Modernize facilities like the Semiconductor Complex Limited in Chandigarh.<\/p>\n

Secure Global Collaborations:<\/strong> Deepen ties with countries like the US and Japan for tech cooperation.<\/p>\n

Drive Investment:<\/strong> Approve proposals like Micron’s to attract more global semiconductor businesses.<\/p>\n

Promote Green Manufacturing:<\/strong> sustainable semiconductor manufacturing achieved through innovations and investments in green technologies, efficient water and resource usage, reduced factory emissions, and contributing to communities and society.<\/p>\n

Support Startups:<\/strong> Extend support through initiatives like the Design Linked Incentive (DLI) scheme.<\/p>\n

Strengthen the Entire Value Chain:<\/strong> From semiconductor design to final assembly and testing.<\/p>\n

Utilize Fiscal Incentives:<\/strong> Provide competitive incentives to attract global and domestic investors.<\/p>\n

Engage Global Giants:<\/strong> Show India’s commitment and clarity to entice industry-leading semiconductor companies.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cSemicon India 2023: How government\u2019s support and will built the semiconductor industry\u201d published in \u201cThe Indian express\u201d on 29th July 2023. Syllabus: GS3- Effects of liberalisation on the economy, changes in industrial policy and their effects on industrial growth. News: In this article author discusses India’s past… Continue reading Semicon India 2023: How government\u2019s support and will built the 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":[216,8184],"class_list":["post-253999","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/253999","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=253999"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/253999\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=253999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=253999"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=253999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}