About Semicon India Programme
- In order to widen and deepen electronic manufacturing and ensure development of a robust and sustainable Semiconductor and Display ecosystem in the country, the Government of India launched the Semicon India Programme in 2021.
- The initiative aimed at positioning India as a global hub for electronic system design and manufacturing.
- Through the program’s scope, the government hopes to attract large global chip makers to make India their production base. India wants to achieve technological leadership in these areas of strategic importance – also key to the security of the country’s critical information infrastructure.
- India Semiconductor Mission (ISM) has been set up as a dedicated institution for the Semicon India Programme.
- ISM coordinates with the applicant companies who have also reached out to states to provide access to world class infrastructure.
Modified Semicon India Programme
- The Modified Semicon India Programme, unveiled late last year, allows a wider range of fiscal incentives for more “nodes” (specific manufacturing processes that might be spread out over a chip’s production cycle).
- Under the modified program, companies, consortia, and joint ventures planning to set up semiconductor fabs in India, regardless of their stage of development are eligible for a fiscal incentive of 50 percent of the project cost.
- Similarly, a fiscal incentive of 50 percent of the project cost is available for the establishment of display fabs utilizing specified technologies in India.
Why in News?
- Prime Minister Narendra Modi is set to inaugurate ‘Semicon India 2023’ in Gandhinagar.
- The exhibition will inform about the manufacturing process of semiconductors and the progress made in this field.
- Semiconductors are the building blocks of electronic devices ranging from smartphones and cloud servers to modern cars, industrial automation, critical infrastructure and defence systems. They are at the core of fourth industrial revolution technologies.
- India, like other countries across the world, imports most of its chips from Taiwan, Singapore, Hong Kong, Thailand, and Vietnam. Currently, Taiwan accounts for more than 90% of the semiconductor manufacturing in the world, followed by the Netherlands, and South Korea.
- If a country is looking to be self-sufficient or self-reliant, it cannot do without a vibrant semiconductor industry.
- The Semicon India Programme will not only boost semiconductor manufacturing but will also help India achieve self-sufficiency, improve data security, and gain digital independence.
- Developing domestic semiconductor manufacturing capabilities will have a multiplier effect across different sectors of the economy and will contribute significantly to achieving a USD 1 trillion digital economy and a USD 5 trillion GDP by 2025.