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Encouraging fab units to implement sustainable practises and allocate funds towards climate-resilient infrastructure is imperative from the government.
India's Semiconductor Industry Is Struggling
· With an allocation of Rs. 76, 000 crore, the Semicon India Programme was formed in December 2021 with the objective of propelling semiconductor manufacturing in India.
· Experts emphasise that in addition to provide financial support for the semiconductor industry, it is imperative to engage in talent development.
· Climate Change Risk: Moody's recognises the risks associated with climate change and warns of potential damage to facilities, supply chains, and financial losses.
Environmental Impacts of the Semiconductor Industry
· Defence, smartphones, computers, and renewable energy technology like solar panels all depend on silicon processors.
· Significant Environmental Impact: Chip fabrication plants produce hazardous waste, utilise a lot of water, and are among the top emitters of greenhouse gases.
· The sector is heading in the direction of sustainability. Prominent companies, including Taiwan's TSMC, promise to attain net-zero emissions by 2050.
Managing Concerns About Climate Change and Industry Development
· The Advantage of Starting Over: With a fresh start, India's semiconductor sector can benefit from global sustainability best practises.
· Climate-Resilient Infrastructure: The greenfield centres of India's Semicon Programme must be prepared for disruptions caused by climate change.
· The government plays a crucial role in the growth of industry by constructing infrastructure that is climate resilient, promoting sustainable practises in fabrication plants, and other assistance.
LTX Mains Question
Q. Due to the country's present high reliance on semiconductor imports, the government has launched a variety of programmes and policies to promote the growth of the semiconductor industry. Analyse the impact of the performance-linked incentive (PLI) programme on the industry's potential to become self-sufficient in semiconductor manufacture.
{{Mounica Sukhavasi}}