{"id":255512,"date":"2023-08-09T20:49:51","date_gmt":"2023-08-09T15:19:51","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=255512"},"modified":"2023-08-29T14:43:35","modified_gmt":"2023-08-29T09:13:35","slug":"learning-from-the-chips-act-of-the-u-s","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/learning-from-the-chips-act-of-the-u-s\/","title":{"rendered":"Learning from the CHIPS Act of the U.S."},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cLearning from the CHIPS Act of the U.S.<\/strong>\u201d published in The Hindu <\/strong>on\u00a09th<\/sup> August 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS 3 \u2013 Science & Technology, Industrial Policy<\/strong><\/p>\n

Relevance: <\/strong>comparison between India\u2019s and the US semiconductor policy<\/strong><\/p>\n

News:<\/strong> The United States\u2019 Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022 (CHIPS Act<\/strong>) has completed one year. The article compares the US semiconductor policy with India\u2019s.<\/p>\n

What are the differences between the US and India\u2019s Semiconductor Policy?<\/strong><\/h2>\n

Semiconductor Policy<\/strong><\/p>\n

US:<\/strong> The CHIPS Act<\/a> promotes intergovernmental collaboration and creates four funds for execution. The Department of Commerce oversees the $50 billion CHIPS for America Fund for semiconductor advancement.<\/p>\n

Allocations are also designated for specific purposes, such as $2 billion for defense-unique technologies under the Department of Defense.<\/p>\n

India:<\/strong> The Ministry of Electronics and Information Technology (MeitY) oversees India’s semiconductor policy. Specific segments like manufacturing, assembly, displays, and compound semiconductors are handled by the independent India Semiconductor Mission (ISM)<\/a> under MeitY.<\/p>\n

Chip design policy is managed by C-DAC<\/a>, an R&D organization under MeitY. However, to ensure that the semiconductor strategy persists beyond government terms, a whole-of-government approach like to the CHIPS Act is required<\/strong>.<\/p>\n

Collaboration<\/strong><\/h2>\n

US:<\/strong> Firms applying for funding through the CHIPS Act must present workforce development proposals. A nodal agency, known as the National Semiconductor Technology Center (NSTC)<\/strong>, has been established to partner with businesses and educational establishments.<\/p>\n

India:<\/strong> MeitY has initiated the Chips2Startup (C2S) initiative<\/a>, working with more than 100 universities and colleges. Similar to NSTC, C2S seeks to enhance workforce growth by endorsing established high-quality training schemes<\/strong>.<\/p>\n

However, in India, many private training centres prepare chip designers outside the conventional university system.<\/p>\n

Hence, it is important for C2S to focus on<\/strong> certifying good programmes of universities or private training institutes rather than running them.<\/p>\n

Feasibility Assessment Guidelines <\/strong><\/h2>\n

US:<\/strong> The CHIPS Act has created a CHIPS Program Office (CPO)<\/strong> to lay down the guidelines for assessing the financial viability of a project. The CPO is hiring Investment Principals and Financial Structuring Directors to catalyse private sector investments.<\/p>\n

India:<\/strong> While India has set up feasibility assessment guidelines, transparency improvements are necessary<\/strong>. Regular monthly progress reports on the semiconductor program, published by the government, will enhance confidence and expectation management.<\/p>\n

Packaging Research <\/strong><\/p>\n

US:<\/strong> The CHIPS Act allocates $11 billion for research beyond domestic semiconductor manufacturing, focusing on advanced packaging. The National Advanced Packaging Manufacturing Program (NAPMP)<\/strong> is introduced to enhance the U.S.’s strategic position in this area.<\/p>\n

India:<\/strong> India’s semiconductor approach lacks a strong focus on advanced manufacturing and packaging research. Hence, India should learn a lesson from the CHIPS Act and invest in research on future technologies.<\/p>\n

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

What can be the way ahead?<\/strong><\/h2>\n

The CHIPS and Science Act offers a valuable blueprint for semiconductor policy. Hence, India’s strategists should thoroughly assess its strengths and weaknesses and implement relevant aspects in their semiconductor approach.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cLearning from the CHIPS Act of the U.S.\u201d published in The Hindu on\u00a09th August 2023. Syllabus: GS 3 \u2013 Science & Technology, Industrial Policy Relevance: comparison between India\u2019s and the US semiconductor policy News: The United States\u2019 Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022… Continue reading Learning from the CHIPS Act of the U.S.<\/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":[216,8184,10498],"class_list":["post-255512","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","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\/255512","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=255512"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/255512\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=255512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=255512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=255512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}