Modi says India can become the hub of chip-making industry

Modi says India can become the hub of chip-making industry

Modi says India can become the hub of chip-making industry

Context 

In his opening remarks at the ‘Semicon India 2023’ summit in Gujarat on Friday, Prime Minister Narendra Modi presented a persuasive case for why India would become a major centre for the semiconductor and chip-making industries.

What is Semiconductor Chip?

  • Transistors comprised of carefully chosen materials, often silicon, make up a semiconductor chip.
  • Transistors modify information that is encoded as 0s and 1s to create new information.
  • The source, the gate, and the drain (or sink) are the three components that make up a transistor.
  • The voltage applied to the gate controls how much current flows between the source and drain.
  • Each bit on the semiconductor chip represents a logical state (0 or 1) and is used to store information.

What do we know about  The semiconductor industry in India?

  • The prospects in the semiconductor sector are beginning to be recognized in India.
  • When Foxconn Technology Group withdrew its backing from the joint venture with Vedanta, Ltd., the construction of a semiconductor manufacturing facility in Gujarat suffered a setback.
  • Incentives have been implemented by the Indian government to support the semiconductor industry.
  • Legacy Nodes
    • Instead of the most cutting-edge nodes like 10 nm or 5 nm, India is currently concentrating on nodes at 28 nm or above.
    • Numerous industries, including robotics, defence, aerospace, tools for industry automation, autos, the Internet of Things, and image sensors, continue to use legacy nodes in a variety of ways.
    • Starting using legacy nodes can provide benefits, such as cost-effectiveness and long-term success planning.

What is the  Potential Development for India’s Semiconductor Industry?

  • Future growth prospects for India’s semiconductor industry are provided by the demand for semiconductor technologies in several sectors, such as electric vehicles and infotainment systems.
  • While sophisticated nodes predominate in devices like smartphones and laptops, legacy nodes will still be necessary to meet the demands of particular applications.

Why is India the apt place for Semi-Conductor Industry?

  • Internet penetration and fibre infrastructure in the country
  • Availability of talent pool
  • Huge market potential
  • Friendly and attractive corporate tax system
  • Political stability

Investment Announcements at Semicon India 2023:

  • The ‘Semicon India 2023’ conclave witnessed significant investment commitments from global semiconductor companies:
  • Advanced Micro Devices (AMD) announced plans to invest around $400 million over the next five years to build its largest design centre in Bengaluru, indicating confidence in India’s potential.
  • Foxconn, a Taiwan-based company, expressed its focus on establishing a plant in India, citing optimism about the Indian government’s determination.
  • Presence of Major Semiconductor Companies: The conference was attended by top representatives from major semiconductor companies like Micron Technology, Applied Materials, Foxconn, SEMI, Cadence, and AMD. Their presence signifies the growing interest in India’s semiconductor industry.