In a recent development, the Union Cabinet has given a green light to the Memorandum of Cooperation (MoC) which focuses on creating a partnership for semiconductor supply chain between India and Japan. This decision marks a significant move as India aims to strengthen its position in the global semiconductor supply chain.
The Importance of India-Japan Semiconductor Cooperation
The partnership between India and Japan is crucial given the importance of semiconductors in industry and digital advancements. The MoC, which was initially signed in July by India’s IT Ministry and Japan’s Ministry of Economy, Trade, and Industry, reinforces this collaboration. This collaboration is part of India’s larger objective to become a reliable player in the international semiconductor supply chain, mainly as businesses explore alternatives to China post Covid pandemic.
Understanding India’s Semiconductor Aspirations
Under the India Semiconductor Mission, India works to position itself as a consistent presence in the international semiconductor supply chain. The country has announced a $10 billion plan to boost domestic chip production, with companies like Micron Technology establishing their assembly and packaging facilities in Gujarat.
India-US Collaboration
Additionally, India and the US have joined hands to fortify the chip supply chains. Both countries have reiterated their commitment to establishing resilient global semiconductor supply chains.
Investments Made in India’s Semiconductor Sector
Investments from big chip corporations like Microchip Technology and AMD are bolstering India’s semiconductor sector. These companies are investing significantly in expanding their operations and setting up research and development facilities in the country.
The Concept of Semiconductors
Semiconductors are crystalline solids that display electrical conductivity properties falling between an insulator and a conductor. They play a pivotal role in the manufacture of various electronic devices, such as diodes, transistors, and integrated circuits.
Unveiling the India Semiconductor Mission (ISM)
Launched in 2021 with a financial allocation of Rs 76,000 crore, the ISM under the Ministry of Electronics and IT is a comprehensive program for developing sustainable semiconductor and display ecosystems. It also provides financial backing to companies investing in semiconductors and display manufacturing.
Challenges Faced by India in Semiconductor Manufacturing
Despite its potential, India faces several challenges in semiconductor manufacturing. These include the high cost of establishing a fab, high investment risks, insufficient government fiscal support, lack of fabrication capacities, and resource inefficiency.
Recommendations for Improvement
To overcome these obstacles, consistent fiscal support, maximising self-reliance, and forming collaborations with technologically advanced nations can be considered. India can capitalise on its considerable talent pool while focusing on umproving research and development in the sector.
UPSC Civil Services Examination Questions on Semiconductors
To better comprehend the topic, here are previous year questions from the UPSC Civil Services Examination related to semiconductor and similar technology:
Q. With reference to solar power production in India, consider the following statements: (2018) India is the third-largest in the world in the manufacture of silicon wafers used in photovoltaic units. The solar power tariffs are determined by the Solar Energy Corporation of India. Which of the statements given above is/are correct? (a) 1 only(b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Ans: (d)
Q. Which one of the following laser types is used in a laser printer? (2008) (a) Dye laser (b) Gas laser (c) Semiconductor laser (d) Excimer laser Ans: (c)
