Semiconductor chips are the heart of electronics.
Design, fabrication & manufacturing complete ecosystem required in India. Roughly around INR76,000 Cr. Or $10Billion investment is planned in India.
Last 7 years’ journey of electronics, from a vision of Aatmnirbhar Bharat we have reached $75billion manufacturing of electronics in India. At this speed in the upcoming 6years, it is predicted to reach $300 billion or approx. INR20,00,000Cr electronics manufacturing.
What is in the ecosystem of electronics manufacturing?
It consists of 4 main processes:
- Semiconductor chips
- Discrete components
- Supply-chain mechanism
As a result of this, now India has one of the world’s largest mobile manufacturing units.
The wafer is the best for the strategy. A nation needs to work into the development of this wafer or else they will lack into the financial development of a futuristic product. It is required to have control on the design, quality, talent is needed to be monitored or else it will stall the development of the nation.
With the speed at which electronics, AI, computing is progressing everyone needs to catch up.
On the scales of several nanometers, the etching process is carried out on the chips. This process produced chips as small as a 1000th part of hair thickness, clubbing together forms a chipset. This chipset is mounted onto a circuit board for making it useful for lights, tv, laptops, phones, etc.
To carry out the task the very first step is silicon semiconductor fab is required, then display fab, then compound semiconductors (used in vehicles, appliances and others), packaging of semiconductor (conversion of chips into chip-set).
The government has decided to develop a value chain for all these processes.
The world is consists of around 20% of engineers from India only in the semiconductor industry. In order to increase this capability, 85,000 high-quality, highly-qualified, well-trained Engineers will get into a program called C2S (Chips to Start-up).
This will increase the eco-system of semiconductor manufacturing with a pull. This is the roadmap of 20years from GOI. In the coming 2years, GOI has targeted to set up a minimum of 20Units to be set up.
The chips consist of the brain of the designer. India already consists of approx 20% chip designers, this can give an opportunity to this community for making up a mindset of getting their own start-up.
A separate & unique scheme is planned for the design houses called DLI (Design Link Incentive). In this scheme, software tool, computing power, raw material, design validation & testing, IPR (patent), actual fabrication. 50% of all the expenses in these will be borne by GOI under DLI.
After the deployment of this indigenous design with a complied product & after the sale of that product, the chip manufacturer will get 6% of the sale amount as the incentive for up to 5 years where the incentive will be the decreasing year on year to 4%.
This framework is prepared to develop the ecosystem of research & development of this field.
Around 15-20 MSMEs will be set up which depend upon the compound conductors like gallium, nitride or silicon carbide etc.
This program is expected to generate 35,000 high quality jobs & 1,00,000 indirect jobs.
What is it in Solar Industry?
Solar Panels consist of solar cells made up of silicon, a semiconductor material. India is largely depended upon imports for these solar cells.
In April 2021, the Union Cabinet approved a Rs 4,500 crore production linked incentive (PLI) scheme to boost the domestic manufacturing capacity of solar PV modules.
The scheme is aimed at adding 10,000 MW manufacturing capacity of integrated solar PV modules entailing direct investment of Rs 17,200 crore at present. With the increase in allocation to Rs 24,000 crore, the quantum of investments and domestic manufacturing capacity envisaged under the PLI scheme would further increase.