18 November 2024 : PIB Summary For UPSC

1. Assam’s Semiconductor Plant: A Game-Changer for India’s Semiconductor Ecosystem

(Source – https://pib.gov.in/PressReleseDetail.aspx?PRID=2074074&reg=3&lang=1 )

Topic: GS3 – Indian Economy

Context

India is advancing its semiconductor industry with the development of a major facility in Morigaon, Assam, led by Tata Semiconductor Assembly and Test Pvt Ltd. This aligns with the India Semiconductor Mission (ISM), aiming to reduce import dependence and position India as a global leader in semiconductor manufacturing. The project brings significant economic and employment benefits.

India’s Semiconductor Industry Growth

• Morigaon Semiconductor Facility:
  • Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) is developing a semiconductor unit in Morigaon, Assam.
  • Investment of Rs. 27,000 crore.
  • Expected to produce up to 48 million semiconductor chips per day using flip chip and Integrated System in Package (ISIP) technologies.
  • Facility designed for sectors like automotive, electric vehicles, telecommunications, and consumer electronics.
  • Completion expected by mid-2025.

• Socio-Economic Benefits:
  • Will create 15,000 direct jobs and 11,000-13,000 indirect jobs.
  • Contributes to regional economic growth in Assam and surrounding areas.
  • Daily output will serve both domestic and international markets, enhancing India’s competitiveness in the global semiconductor supply chain.

India Semiconductor Mission (ISM)

• Mission Objectives:
  • Aims to build a self-sufficient semiconductor ecosystem.
  • Reduce reliance on imports and make India a global leader in electronics manufacturing and design.
  • Involves collaborations between industry, government, and academic institutions.
• Government Initiatives:
  • Launched in 2021 with an investment of ₹76,000 crore under the Semicon India program.
  • Promotes semiconductor manufacturing through incentives and strategic partnerships.
  • Supports various sectors: semiconductor fabrication (fabs), packaging, Outsourced Semiconductor Assembly and Testing (OSAT), sensors, and more.

Future Developments

• Expansion Across India:
  • Additional semiconductor facilities planned in Gujarat and Mohali.
  • New units by Tata Electronics in Dholera, Gujarat, and CG Power in Sanand, Gujarat.
  • The government also approved a unit by Kaynes Semicon Pvt Ltd in Sanand.
  • These initiatives aim to strengthen India’s position in the global semiconductor supply chain and digital economy.

Practice Question:  Discuss the role of the India Semiconductor Mission (ISM) in fostering self-reliance in semiconductor manufacturing. How will initiatives like the Morigaon semiconductor facility contribute to India’s position in the global supply chain? (250 Words /15 marks)