Semiconductor Fabrication in India

GS 3: Science & Technology


Course corrections are necessary as semiconductor incentives falter.

Present Status of Indian Semiconductor Manufacturing

· Investing in Semiconductor Fabrication: Through Production-Linked Incentive (PLI) programs, India has consciously put a significant amount of money into this sector, realizing its critical role in a variety of industries.

· Underutilized Funds and Strategic Concerns: In spite of the financial support, issues with the underutilization of these funds emerge, leading to a critical assessment of the strategy's efficacy.

· India is renowned for its superiority in semiconductor design; nevertheless, there are still gaps in the manufacturing ecosystem that need to be filled. For the nation to have a comprehensive and effective semiconductor strategy, this element must be strengthened.

Plans for PLI and the India Semiconductor Mission

· India Semiconductor Mission (ISM): An important initiative for the semiconductor ecosystem's strategic mission. Even with such a large financial commitment, the mission still faces obstacles that should be carefully considered.

· Limited Effects of PLI Schemes: Even with their substantial funding, the current Production-Linked Incentive (PLI) schemes show little promise in terms of creating jobs and adding value. When the impact is not as great as anticipated, a more thorough approach is clearly needed.

· Issues with a Focus on Large Manufacturing: Concerns concerning the restricted reach of these incentives are raised by the focus on providing incentives for large manufacturing plants. The reluctance of multinational chipmakers to commit heavily underscores the need for a flexible and subtle approach.

Expense Management: Expense Clarity and Measurable Results

· Enhancing Semiconductor Design and Overcoming Obstacles: It is imperative to increase efforts in semiconductor design in order to strengthen India's standing in the semiconductor industry. Furthermore, resolving obstacles in the establishment of semiconductor wafer fabrication facilities is essential for a robust and competitive semiconductor industry.

· Realistic Goals: India's semiconductor policy ought to be in line with realistic goals. Having clear goals is essential, regardless of the purpose—protecting cyber sovereignty, lowering the cost of electronics for Indian consumers, or establishing India as a hub for global manufacturing.

· Focused semiconductor strategy: With greater clarity comes the possibility to correct course before large expenditures are made with little return, guaranteeing a more efficient and targeted semiconductor strategy for India's technological future.

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}}

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