• The Union Cabinet approved the establishment of the sixth semiconductor unit under India Semiconductor Mission.

• Already five semiconductor units are in advanced stages of construction.

• The sixth semiconductor unit at Jewar in Uttar Pradesh will attract investment of Rs 3,700 crore.

• It will be set up by the HCL-Foxconn joint venture to manufacture display driver chips for mobile phones, laptops, and automobiles.

• Foxconn is the biggest manufacturer of electronic products, including Apple’s iPhone. 

• HCL has a long history of developing and manufacturing hardware.

• The HCL-Foxconn JV will become operational in 2027.  

• The plant will have the capacity to handle 20,000 wafers per month, and 3.6 crore chips will be produced per month.

• The plant is expected to create employment for 2,000 people.

Importance of semiconductors

• Semiconductor is a foundational industry touching almost every aspect of life, powering everything from fridges to ACs and cars, aircraft to trains.

• Semiconductor chips are the essential building blocks of digital and digitised products. From smartphones and cars, through critical applications and infrastructures for healthcare, energy, communications and industrial automation, chips are central to the modern digital economy. 

• Recent global semiconductors shortages forced factory closures in a wide range of sectors from cars to health care devices. In the car sector, for example, production in some European countries decreased by one-third in 2021. This made more evident the extreme global dependency of the semiconductor value chain on a very limited number of actors in a complex geopolitical context.

• By 2030, the global semiconductor industry is expected to grow to $1 trillion.

• The Indian semiconductor market, worth $15 billion in 2020, is estimated to reach $63 billion by 2026.

• India currently imports most of its semiconductors, but the government wants to change that through domestic manufacturing. 

India Semiconductor Mission

• The India Semiconductor Mission (ISM) aims to build a strong semiconductor and display ecosystem, positioning India as a global hub for electronics manufacturing and design, while serving as the nodal agency for the efficient and seamless implementation of semiconductor and display schemes.

• Its aim is to enhance semiconductor design and manufacturing capabilities within the country, fostering innovation, employment, and economic growth.

• The development of the semiconductor ecosystem in India will substantially increase domestic value addition in electronics manufacturing, reduce import dependency and integrate India electronics manufacturing ecosystem with global supply chains. 

• The government has approved five semiconductor manufacturing projects with cumulative investment of around Rs 1,52,000 crore under the programme. 

• The approved projects are under various phases of implementation.

Objectives of India Semiconductor Mission:

i) Develop a strong semiconductor ecosystem in India.

ii) Encourage indigenous semiconductor design and manufacturing.

iii) Foster collaboration between industry, academia, and research institutions.

iv) Promote skill development and talent acquisition in the semiconductor field.

v) Attract investments and drive innovation in semiconductor technologies.

Focus areas of ISM:

i) Integrated Circuit (IC) design and manufacturing.

ii) Semiconductor packaging and assembly.

iii) Testing and validation of semiconductor devices.

iv) Advanced materials and process technologies.

v) Design automation and tool development.

vi) Skill development and human resource capacity building.

Semicon India Programme with an outlay of Rs 76,000 crore

• In December 2021, a comprehensive programme for the development of semiconductors and display manufacturing ecosystem in India was approved by the government with an outlay of Rs 76,000 crore. 

• The Modified Programme for Semiconductors and Display Fab Ecosystem (also known as Semicon India Programme) includes various schemes to attract investments in the field of semiconductors and display manufacturing.

• Semicon India Programme was conceived following the success of Digital India Programme and Make in India Programme in electronics manufacturing sector. 

• The schemes have laid a strong foundation for the Semicon India Programme thereby making the country an internationally conducive and competitive destination for semiconductor and display manufacturing.

Manorama Yearbook app is now available on Google Play Store and iOS App Store