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India Deploys Infrastructure for Microelectronics Manufacturing

Faculty of Electrical and Electronics Engineering of Mahindra University

India intends to become a global center for the design and manufacture of microelectronics. On December 15, 2021, the Cabinet of Ministers approved the Semiconductor and Display Ecosystem Development Program. For these purposes, the government is allocating ₨ 760 billion (over $ 10 billion) over six years. The main task is to attract leading world players to the country. The Minister of Electronics and IT said that in two to three years, at least a dozen manufacturers will start building factories in India.

India is similar to Russia in some respects. The country has highly qualified engineering personnel. Now she specializes in R&D and development of microcircuits, but she is forced to produce them abroad. Soon everything will change.

The program for the development of microelectronics was adopted within the framework of the state concept of Atmanirbhar Bharat ("Self-sufficient India"). The program spelled out measures of financial support for companies involved in the construction of factories for the production of semiconductor wafers and displays, photonics, sensors (including MEMS), packaging of microcircuits (ATMP / OSAT), research activities.

Shakti open source processor

In addition to this program, funding was approved for an additional $ 30 billion for related programs for the production of batteries, fuel cells, automotive components, networking equipment, solar panels and financing other industries that use microelectronics.

The stimulus package comes amid acute shortages of electronic components that have crippled Indian car, consumer electronics and mobile phone makers.

This deficit forced the Indian authorities to think about import substitution, that is, about localizing the production of foreign companies in the country. These industries are of strategic importance to the economy and to the security of infrastructure.

With an economic stimulus program, the government hopes to motivate major global manufacturers to establish their manufacturing base in India. Further goals are to attract massive investment and create jobs.

The state will pay up to 50% of the costs of building factories. The program is expected to attract $ 22.5 billion in private investment.

Perhaps, in the future, India will be able to take the place of China, where the average salary of local residents of $ 1,274 per month (according to the Chinese Statistical Committee) no longer allows mass production at a low cost.

Probably, India with advanced science, good engineers (world-class space program, programming, IT hubs) and low wages of workers is well suited for mass production of inexpensive microcircuits.

Now India is more specialized not in manufacturing, but in the development of microcircuits, including for foreign customers. The Indian Electronics and Semiconductor Association (IESA) estimates that the Indian chip design market is growing 29.4% annually, growing from $ 14.5 billion in 2015 to $ 52.6 billion in 2020.

At the same time, India is preparing to enter into a very important industrial alliance with Taiwan, which is in an alliance with the United States and is in a state of cold war with China, which does not recognize its independence. It is in Taiwan that TSMC factories are located, which are of strategic importance to the world economy.

India Deploys Infrastructure for Microelectronics Manufacturing