The Indian government has approved a PLI scheme of Rs 76,000 crore, which is approximately equivalent to $10 billion, to attract semiconductor and display manufacturers. India would like to acquire the self-sufficient goals related to the manufacture of semiconductors. Besides this, it wants to have a global hub of semiconductors. India has also announced the formation of a dedicated and independent “India Semiconductor Mission (ISM)” for developing a sustainable ecosystem in semiconductor manufacturing and displays. Let us discuss more over new semiconductor hub in India, the ISM.
What is ISM?
The India Semiconductor Mission (ISM) is a specialized and independent business division within the Digital India Corporation, which seeks to create a vibrant semiconductor and display ecosystem through which India will develop into a global hub for electronics manufacturing and design. Headed by global experts of the Semiconductor and display ecosystem, the mission shall act as a focal point for the comprehensive, coherent, efficient and smooth deployment of the Program for Development of Semiconductor and Display Ecosystem in consultation with the Government ministries / departments / agencies, industry, and academia.
Vision
The enhancement of a lively semiconductor and display design and innovation ecosystem for India is the vision of ISM, thus enabling India to become a global hub in electronics manufacturing and design in a more systematic, devoted, and all-welcoming way through diverse means.
Progress
Semiconductor manufacturing encompassed different stages like – Research and development, design, Fabrication and Assembly, Testing, Marking, and Packing (ATMP) etc. India is planning to capture great share in ATMP segment.
ATMP captures about 10% of the revenue that generates via the semiconductor business. Huge source of opportunity holds for India as low-cost skilled technical workforce available there.
Companies like TATA, Vedanta are into semiconductor manufacturing investment in India. At present, there were five projects for establishing semiconductor and display fabrication units cumulatively valued at $20.5 billion.
It is also there in the plan of India to set up 20 semiconductor design companies to consider a share in the semiconductor design business. The design captured 30 per cent revenue of the semiconductor business. In addition, the design business is environ-friendly.
ISM has also made some new collaborations or partnerships with national and international agencies, industries and institutions. It is for catalyzing research, commercialization and skill development.
Challenges of ISM
India imports several raw materials like neon gas, C4F6, palladium, rhodium, and titanium used for developing semiconductors, from Russia and Ukraine. Currently, the war in Russia and Ukraine has disrupted the supply chain for these materials causing global shortage and steep price increase for these materials.
Chip making is electricity intensive and uses a lot of water. In addition, the process of manufacturing a semiconductor releases toxic gases and chemicals.
As the usage of electronic devices is increasing continuously, the global demand for semiconductors is also increasing. several countries including the US, and Japan are trying to leverage this opportunity. India is also aiming to grab a share in the annual $500-billion semiconductor business. Today, India has become more welcome towards chip manufacturers than ever before. The India Semiconductor Mission is also known as new semiconductor hub in India. It will develop a sustainable ecosystem in semiconductor and display development.
