India’s first commercial semiconductor fab

Context

India Semiconductor Mission (ISM), Tata Electronics, and Tata Semiconductor Manufacturing signed a Fiscal Support Agreement (FSA) for India’s first commercial semiconductor fab in Dholera, Gujarat.

Key Highlights

• Taiwan’s Powerchip is taking part, specializing in automobile, computing, communications, and AI markets.
• This will entice fab creation corporations from Taiwan to Gujarat.
• The $11 billion Tata-PSMC fab is one in all five semiconductor projects permitted under the India Semiconductor Mission (ISM). 
• Four additional semiconductor projects are under production, which includes Micron, Tata, CG Power (with Renesas), and Kaynes Semicon.
• The agreement strengthens India’s self-reliance in semiconductor and show production.

What are Semiconductors?

• Semiconductors have electric houses between conductors (metals) and insulators (rubber).
• They conduct energy under certain conditions and act as insulators under others.
• Often made from silicon or germanium, semiconductors also are known as integrated circuits (ICs) or microchips.
• Doping involves including impurities to trade the material’s conductivity.
• Applications: Semiconductors are utilized in diverse digital devices, together with transistors, which feature as switches or amplifiers.
  • They are vital in computers, cellular phones, sun cells, LEDs, and integrated circuits.

India Semiconductor Mission (ISM) (2021)

• • It functions as a committed commercial enterprise division within the Digital India Corporation.
  • Objective: To increase a strong semiconductor atmosphere in India, lowering dependency on imports and strengthening technological self-reliance.
  • Government Support: The Indian government has devoted 50% fiscal aid for eligible assignment charges under ISM.
  • Global Collaboration: The venture encourages collaborations with global companies like Taiwan’s Powerchip and Micron Technology. 
  • PLI (Production Linked Incentive) Scheme: Encourages domestic chip manufacturing with 4%-6% incentives.

• SPECS (Scheme for Promotion of Manufacturing of Electronic Components & Semiconductors): Supports electronic additives & semiconductors

Why is there an Increased attention on Semiconductors?

• Strategic Importance: Semiconductors are critical for the economy, using generation, defense, and industrial growth.
• Supply Chain Vulnerability: The 2021 chip shortage highlighted international dependence on some key suppliers.
• Taiwan’s Dominance: Taiwan is the world’s largest chip manufacturer, controlling a quality share of manufacturing.
• India’s Ambition: India pursuits to emerge as a significant participant in semiconductor production.
• Geopolitical Competition: Rising tensions with China are pushing nations to diversify chip production.

Source: The BS

UPSC Prelims Practice Question

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)

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