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Program for Development of Semiconductors and Display Manufacturing Ecosystem in India

Semiconductor Ecosystem in India- Relevance for UPSC Exam

  • GS Paper 2: Governance, Administration and Challenges- Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Program for Development of Semiconductors and Display Manufacturing Ecosystem in India_3.1

 

Semiconductor Ecosystem in India- Context

  • Recently, the Union Cabinet approved the ‘Program for Development of Semiconductors and Display Manufacturing Ecosystem in India’.

Program for Development of Semiconductors and Display Manufacturing Ecosystem in India_4.1

 

Program for Development of Semiconductors and Display Manufacturing Ecosystem in India

  • About: Program for Development of Semiconductors and Display Manufacturing Ecosystem in India aims to provide a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design.
    • The program will give an impetus to semiconductor and display manufacturing by facilitating capital support and technological collaborations.
  • Key Objectives: Comprehensive program for the development of sustainable semiconductor and display ecosystem in India was launched with the following objectives-
    • Furtherance of the vision of Aatmanirbhar Bharat and
    • Positioning India as the global hub for Electronic System Design and Manufacturing
  • Funding: Program for the development of the semiconductors and display manufacturing ecosystem provides an outlay of Rs.76,000 crore for the Development of Semiconductors and Display Manufacturing.
  • Beneficiaries: Program for Development of Semiconductors and Display Manufacturing Ecosystem in India aims to provide attractive incentive support to companies/consortia that are engaged in-
    • Silicon Semiconductor Fabs,
    • Display Fabs,
    • Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs,
    • Semiconductor Packaging (ATMP / OSAT), and
    • Semiconductor Design.

 

Semiconductor Ecosystem in India- Government Support

  • In total, the Government of India has committed support of Rs. 2,30,000 crore (USD 30 billion) to position India as a global hub for electronics manufacturing with semiconductors.
  • The government of India has announced incentives for every part of the supply chain including electronic components, sub-assemblies, and finished goods.
    • Incentive support to the tune of Rs.55,392 crore have been approved under
      • PLI for Larges Scale Electronics Manufacturing,
      • PLI for IT Hardware,
      • SPECS Scheme and
      • Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme.
    • In addition, PLI incentives to the quantum of Rs.98,000 crore have been approved for allied sectors comprising of
      • ACC battery,
      • Auto components,
      • Telecom & networking products,
      • Solar PV modules and
      • White goods.

 

Semiconductor Ecosystem in India- Significance

  • This shall pave the way for India’s technological leadership in these areas of strategic importance and economic self-reliance.
  • In the current geopolitical scenario, trusted sources of semiconductors and displays hold strategic importance and are key to the security of critical information infrastructure.
  • Program for Development of Semiconductors and Display Manufacturing Ecosystem in India will propel innovation and build domestic capacities to ensure the digital sovereignty of India.
  • Program for Development of Semiconductors and Display Manufacturing Ecosystem in India will also create highly skilled employment opportunities to harness the demographic dividend of the country.
  • Development of semiconductor and display ecosystem will have a multiplier effect across different sectors of the economy with deeper integration to the global value chain.
  • The program will promote higher domestic value addition in electronics manufacturing and will contribute significantly to achieving a USD 1 Trillion digital economy and a USD 5 Trillion GDP by 2025.

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