Program for Development of Semiconductors and Display Manufacturing Ecosystem in India

Semiconductor Ecosystem in India- Relevance for UPSC Exam

• GS Paper 2: Governance, Administration and Challenges- Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Semiconductor Ecosystem in India- Context

• Recently, the Union Cabinet approved the ‘Program for Development of Semiconductors and Display Manufacturing Ecosystem in India’.

Program for Development of Semiconductors and Display Manufacturing Ecosystem in India

• About: Program for Development of Semiconductors and Display Manufacturing Ecosystem in India aims to provide a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design.
  • The program will give an impetus to semiconductor and display manufacturing by facilitating capital support and technological collaborations.
• Key Objectives: Comprehensive program for the development of sustainable semiconductor and display ecosystem in India was launched with the following objectives-
  • Furtherance of the vision of Aatmanirbhar Bharat and
  • Positioning India as the global hub for Electronic System Design and Manufacturing
• Funding: Program for the development of the semiconductors and display manufacturing ecosystem provides an outlay of Rs.76,000 crore for the Development of Semiconductors and Display Manufacturing.
• Beneficiaries: Program for Development of Semiconductors and Display Manufacturing Ecosystem in India aims to provide attractive incentive support to companies/consortia that are engaged in-
  • Silicon Semiconductor Fabs,
  • Display Fabs,
  • Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs,
  • Semiconductor Packaging (ATMP / OSAT), and
  • Semiconductor Design.

Semiconductor Ecosystem in India- Government Support

• In total, the Government of India has committed support of Rs. 2,30,000 crore (USD 30 billion) to position India as a global hub for electronics manufacturing with semiconductors.
• The government of India has announced incentives for every part of the supply chain including electronic components, sub-assemblies, and finished goods.
  • Incentive support to the tune of Rs.55,392 crore have been approved under
    • PLI for Larges Scale Electronics Manufacturing,
    • PLI for IT Hardware,
    • SPECS Scheme and
    • Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme.
  • In addition, PLI incentives to the quantum of Rs.98,000 crore have been approved for allied sectors comprising of
    • ACC battery,
    • Auto components,
    • Telecom & networking products,
    • Solar PV modules and
    • White goods.

Semiconductor Ecosystem in India- Significance

• This shall pave the way for India’s technological leadership in these areas of strategic importance and economic self-reliance.
• In the current geopolitical scenario, trusted sources of semiconductors and displays hold strategic importance and are key to the security of critical information infrastructure.
• Program for Development of Semiconductors and Display Manufacturing Ecosystem in India will propel innovation and build domestic capacities to ensure the digital sovereignty of India.
• Program for Development of Semiconductors and Display Manufacturing Ecosystem in India will also create highly skilled employment opportunities to harness the demographic dividend of the country.
• Development of semiconductor and display ecosystem will have a multiplier effect across different sectors of the economy with deeper integration to the global value chain.
• The program will promote higher domestic value addition in electronics manufacturing and will contribute significantly to achieving a USD 1 Trillion digital economy and a USD 5 Trillion GDP by 2025.

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