Cabinet approves three New Semiconductor Units
Context:
Recently, the Cabinet Approved – Three New Semiconductor Units.
Relevance:
GS-02 (Government policies & interventions), GS-03(Growth and Development)
Key highlights:
Semiconductor Fab in Dholera, Gujarat
- To be established by Tata Electronics Private Limited in collaboration with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan.
Investment: Rs. 91,000 crore.
- Capacity: 50,000 wafer starts per month (WSPM).
- Segments Covered: High-performance compute chips using 28 nm technology and power management chips for electric vehicles (EVs), telecom, defense, automotive, consumer electronics, display, power electronics, etc.
Semiconductor ATMP Unit in Morigaon, Assam
- Operated by Tata Semiconductor Assembly and Test Pvt Ltd.
- Investment: Rs. 27,000 crore.
- Capacity: 48 million units per day.
- Segments Covered: Automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.
Semiconductor ATMP Unit for Specialized Chips in Sanand, Gujarat
- Established by CG Power in collaboration with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand.
- Investment: Rs. 7,600 crore.
- Capacity: 15 million units per day.
- Segments Covered: Chips for consumer, industrial, automotive, and power applications.
What are semiconductor chips?
- Semiconductors are materials with a conductivity between conductors and insulators.
- They can be pure elements like silicon or compounds like gallium arsenide.
- Semiconductor chips are the basic building blocks of modern electronics and information technology products.
- They are essential components in automobiles, household gadgets, and medical devices.
- The COVID-19 pandemic has increased the demand for semiconductor chips as more activities shift online.
- Shortages of semiconductor chips have caused disruptions in various industries, leading to pent-up demand and subsequent supply shortages.
Need for Promoting Semiconductor Industry:
- Semiconductor chips are essential for the functioning of electronic products and drive the development of information and communication technologies (ICT).
- They play a crucial role in critical infrastructures, such as communication and power transmission, with implications for national security.
- Developing the semiconductor industry has a multiplier effect across various sectors of the economy and strengthens integration into the global value chain.
- Only a few countries, including the United States, Taiwan, South Korea, Japan, and the Netherlands, dominate the semiconductor manufacturing industry.
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