Cabinet approves one more semiconductor unit under India Semiconductor Mission (ISM)
(Source – https://pib.gov.in/PressReleseDetail.aspx?PRID=2050859 )
| Topic: GS3 – Indian Economy, GS2 – Governance |
| Context |
| ● The Union Cabinet approved Kaynes Semicon Pvt Ltd’s Rs 3,300 crore investment to set up a semiconductor unit in Sanand, Gujarat, with a capacity of 60 lakh chips per day.
● This unit is part of India’s broader semiconductor ecosystem development under the Rs 76,000 crore Program for Semiconductors and Display Manufacturing. |
Analysis of the news:
- India Semiconductor Mission (ISM) was launched in 2021 with a financial outlay of Rs 76,000 crore under the Ministry of Electronics and IT (MeitY).
- It aims to develop a sustainable semiconductor and display ecosystem in India by offering financial support to companies investing in these sectors.
| What are semiconductors? |
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- ISM is envisioned to be led by global experts from the semiconductor and display industries, acting as the nodal agency for scheme implementation.
- The mission includes various schemes:
- Scheme for setting up Semiconductor Fabs, providing fiscal support to eligible applicants to establish semiconductor wafer fabrication facilities.
- Scheme for setting up Display Fabs to attract investments for TFT LCD and AMOLED display fabrication facilities.
- Scheme for Compound Semiconductors, Silicon Photonics, and Sensors Fab, providing 30% fiscal support for setting up such facilities.
- Design Linked Incentive (DLI) Scheme, offering financial incentives and infrastructure support for semiconductor design development.
- The vision is to build a robust semiconductor and display design ecosystem, positioning India as a global hub for electronics manufacturing and design.
| Need of Promoting Semiconductor Industry |
| ● Global Demand: Semiconductors are essential components in various industries like electronics, automotive, telecom, and healthcare, driving massive global demand.
● Strategic Importance: Semiconductors are critical for national security and technological sovereignty, as they power defense, communication, and infrastructure systems. ● Supply Chain Resilience: Establishing a domestic semiconductor industry reduces reliance on imports, mitigating risks from global supply chain disruptions. ● Economic Growth: The semiconductor industry can boost manufacturing, create jobs, and enhance India’s position in high-tech sectors, fostering economic growth. ● Technological Advancements: Semiconductors are key to innovations in AI, 5G, IoT, and advanced computing, driving the next wave of technological development. ● Global Competitiveness: Promoting the semiconductor industry helps India compete with global players, positioning the country as a hub for electronics manufacturing. ● Green Transition: Semiconductors are vital in energy-efficient technologies, aiding in the global shift toward renewable energy and electric vehicles. |
| Practice Question: Discuss the strategic importance of promoting the semiconductor industry in India and its role in fostering economic growth, technological advancements, and supply chain resilience. (150 Words /10 marks) |
