{"id":285421,"date":"2024-03-02T19:08:37","date_gmt":"2024-03-02T13:38:37","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=285421"},"modified":"2024-03-02T19:16:14","modified_gmt":"2024-03-02T13:46:14","slug":"growth-of-semiconductor-industry-in-india","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/growth-of-semiconductor-industry-in-india\/","title":{"rendered":"Growth of semiconductor industry in India"},"content":{"rendered":"

Source<\/strong>-This post on Growth of semiconductor industry in India<\/strong> has been created based on the article \u201cExpress View on semiconductors: Betting big<\/strong>\u201d published in \u201cThe Indian Express<\/strong>\u201d on 2 March 2023.<\/p>\n

UPSC Syllabus<\/strong>–GS paper 3-<\/strong> Changes in Industrial Policy and their Effects on Industrial Growth.<\/p>\n

News<\/strong>-The article mentions the steps taken by the government to promote semiconductor manufacturing in India.<\/p>\n

Background<\/strong>-The central government has recently approved India\u2019s first semiconductor fabrication plant to be set up in Dholera, Gujarat, by the Tata Group.<\/p>\n

What are Semiconductor Chips?<\/strong><\/h2>\n

Semiconductors are materials which have a conductivity between conductors and insulators. They can be pure elements, silicon or germanium or compounds, gallium, arsenide or cadmium selenide.<\/p>\n

What is the state of Chip manufacturing in world?<\/strong><\/h2>\n

Currently, South Korea, Taiwan and China account for around 70 per cent of the global manufacturing capacity.<\/p>\n

Read more- Elusive quest for semiconductor self-sufficiency<\/a><\/p>\n

What are the steps taken by the government to promote Chip manufacturing in India?<\/strong><\/h2>\n

1) Incentive scheme<\/strong>:-
\na) The government has rolled out Rs 76,000 crore chip incentive scheme. There will be incentives for every part of the supply chain including electronic components, sub-assemblies, and finished goods.<\/p>\n

b) The scheme will cover all three parts of the semiconductor ecosystem \u2014 packaging units (ATMP facilities), assembly and testing projects (OSAT plants), and full-scale foundries.<\/p>\n

2) Fiscal support<\/strong>-The central government offers fiscal support and state governments can offer additional incentives to attract investments.
\nFor ex- in the case of Micron, of the project cost of Rs 2.75 billion, the company will contribute $825 million, with 50 per cent coming from the central government and 20 per cent from the Gujarat government.<\/p>\n

3) Promoting research and development<\/strong>– The government is planning to set up an R&D lab at the Semiconductor Laboratory.<\/p>\n

What is the significance of Chip manufacturing industry for India?<\/strong><\/h2>\n

1) Strategic significance <\/strong>– Domestic manufacturing will reduce dependence on imported semiconductors. This will help in safeguarding critical infrastructure, defense system, sensitive data from cyber vulnerabilities.<\/p>\n

2) Digital Transformation-<\/strong> It can lay the foundation for digital transformation. Chips are at the core of modern electronics and important for the fourth industrial revolution.<\/p>\n

3) Economic significance<\/strong>–<\/p>\n

A) Robust supply chains<\/strong>-The domestic manufacturing of chips will lead to diversification of supply chains. This would minimize uncertainty in the manufacturing of chips.<\/p>\n

B) Employment Generation-<\/strong>It will create new employment in domains like design, fabrication, assembly, and testing.<\/p>\n

C) Enhance export potential <\/strong>– It can help tap the global market and contribute to export earnings.<\/p>\n

D) Boost to domestic manufacturing<\/strong>-It will support Make in India. For ex- The Tata-PSMC plant will serve industries such as high-performance computing, electric vehicles, defense and others.<\/p>\n

The government has taken the right steps by providing support at a fiscal and regulatory level. However, it must also ensure a stable policy environment.<\/p>\n

Question for practice<\/strong><\/p>\n

Stating the significance of domestic manufacturing of semiconductor chips, enumerate the steps taken by the government in this regard?<\/p>\n","protected":false},"excerpt":{"rendered":"

Source-This post on Growth of semiconductor industry in India has been created based on the article \u201cExpress View on semiconductors: Betting big\u201d published in \u201cThe Indian Express\u201d on 2 March 2023. UPSC Syllabus–GS paper 3- Changes in Industrial Policy and their Effects on Industrial Growth. News-The article mentions the steps taken by the government to… Continue reading Growth of semiconductor industry in India<\/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":[216,8184,10500],"class_list":["post-285421","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/285421","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=285421"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/285421\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=285421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=285421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=285421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}