What is the Importance of Semiconductor Devices in Indian Economy?


As part of the Indian Semicon Mission, the Ministry of Electronics and Information Technology recently presented the 1st Semicon India 2022 Conference in Bangalore. Semicon India – 2022 was organized to advance the Prime Minister’s view of making India a leader in electronics manufacturing, semiconductor layout, manufacturing and innovation.


The concept of the conference was “Catalyzing India’s Semiconductor Ecosystem”. Before we delve into India’s semiconductor mission, let’s first understand what semiconductors are.

What are semiconductors?

Semiconductor, semiconductor emission

Any of a category of crystalline forms with electrical properties intermediate between conductors and insulators.

Semiconductors are used to make a variety of electrical devices such as diodes, transistors, and integrated circuits. Due to their compact size, reliability, power efficiency and low charge, such devices have found wide applicability.

They have proven themselves as discrete elements in power devices, optical sensors, and light emitters, which include solid-state lasers.

What is a semiconductor mission?

India’s Semiconductor Mission is the youngest division of Digital India Corporation. The goal is to create a thriving semiconductor and exhibition ecosystem that would enable India to become a global hub for electronics manufacturing and innovation.

The mission will be self-sufficient in deciding the best combination of technologies, applications, node production and capacity, as well as proposing the scope and level of fiscal support for eligible applicants.

Semiconductor, semiconductor emission

Negotiations with individuals applying under the semiconductor and display fab programs are permitted for the mission. It aims to demonstrate a thriving semiconductor and design and technology ecosystem that will enable India to emerge as a global center for manufacturing and designing electronic products.

On December 21st, the Ministry of Electronics and Information Technology presented four initiatives within this new mission. The semiconductor fab-plan and the showcase fab-plan are two of them. A scheme for setting up a semiconductor chip manufacturing facility is as follows: The center has approved financial support of up to 50 percent of project costs for the formation of certain forms of silicon-based semiconductor manufacturing facilities in the country.

The action plan will be funded for 6 years from the date of acceptance. Semiconductor factories established in the country will qualify for a purchasing preference in the procurement of electronic goods by the government.

Semiconductor, semiconductor emission

The project to set up display fabs in the country has provided up to Rs 12,000 crores in financial support per fab.

These efforts require significant investment in the manufacture of TFT-LCD or AMOLED-based display screens. Sensors / Silicon Photonics / Compound Semiconductors: The System for the Formation of Compound Semiconductors / Silicon Photonics / Sensing (including MEMS) Fabs and Semiconductor ATMP / OSAT Services in India will provide approved components with a 30 percent tax investment subsidy. According to reports, this system will produce at least 15 such compound semiconductor devices and semiconductive packaging elements.

The Design Linked Reward (DLI) plan offers a reward of up to 50% of eligible spend and a product-use incentive of 4-6% of net sales over a 5-year period.

Need to promote the semiconductor industry?

According to experts, semiconductors are at the heart of the modern economy. In today’s technological world, where almost everything revolves around electronic devices, the relevance of these microchips cannot be overstated. Also known as integrated circuits (ICs), these chips are made primarily of silicon and germanium.

Semiconductor, semiconductor emission

Without semiconductor chips there would be no smartphones, radios, televisions, laptops, computer systems or even advanced medical devices. They are used in the manufacture of electronic devices. In addition, with the advent of electric vehicles, the demand for semiconductors is expected to skyrocket.

Moreover, the Covid-19 pandemic has shown that the demand for electronic devices will only increase in the coming future, experts add. Overall, the industry seems like an attractive place to start early. India’s semiconductor consumption is forecast to surpass US$80 billion by 2026 and US$110 billion by 2030.

These chips are only made in a few nations worldwide. The USA, Taiwan, South Korea, Japan and the Netherlands dominate the industry. Germany is also a growing IC manufacturer.

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