Connect with us

Headlines of the Day

Are India’s claims of becoming a global semiconductor powerhouse premature?

Washington DC-headquartered Information Technology and Innovation Foundation (ITIF), a non-profit, nonpartisan, public policy US think-tank, has released a report, Assessing India’s Readiness to Assume a Greater Role in Global Semiconductor Value Chains.

The ITIF report says that India has the potential to play a much more significant role in global semiconductor value chains and within the five-year timeframe it could expand its presence in the semiconductor assembly, test and packaging (ATP) segment to as many as five facilities while attracting fabs that produce legacy semiconductors in the 28nm or higher range. But to capitalise on that opportunity, the government must uphold key investment policies and maintain a conducive regulatory and business environment while avoiding measures that create unpredictability.

Stephen Ezell, vice president of global innovation policy at the ITIF and the report’s co-author, commented: “India is well positioned to capitalise as industries and nations reassess the structure of global value chains in a quest for cost and innovation competitiveness…[and]… expanding India’s presence in semiconductor manufacturing would build on its decades-long experience in chip design, but time is short and the race to be a global leader is already on.”

That said, there are strong reservations on India being able to turn itself into a global semiconductor powerhouse. Despite the lure of the $10bn scheme, (which the report describes as “currently the world’s most generous”) the net result will be no more than five modest fabs by 2029.

The semiconductors manufactured will be no more sophisticated than today’s 28nm chips – and such chips will be well along the road to obsolescence by the time the Indian fabs come online. By then, massive planned investments in the US state of Arizona alone, by the likes of Intel, Samsung and Taiwan Semiconductor Manufacturing Company (TSMC), will be creating smaller and more powerful chips than the five new Indian facilities will be able to make. Meanwhile, other facilities, either planned or already under construction in the US, Europe, Japan and Taiwan will eclipse what India can produce by that same date.

India’s chips sector is not yet a complete ecosystem and it will take many years to achieve that status. While India’s integrated circuit design capability is very important, most of India’s design talent works for foreign companies.

The report has been welcomed by The Semiconductor Industry Association (SIA) and the India Electronics and Semiconductor Association (IESA). It was commissioned by SIA and IESA through the U.S.-India Initiative on Critical and Emerging Technology (iCET).

“This is an exciting moment in history for the semiconductor industry and for strategic cooperation between the U.S. and India,” said John Neuffer, SIA President and CEO. “India is already an important link in the global semiconductor supply chain and has the opportunity to expand its role in our sector. While global competition for semiconductor investment is fierce, India’s value proposition is strong, and I’m confident it can grow even stronger with the right mix of government policies.”

Ashok Chandak, president of IESA, stated, “Given its rapidly expanding domestic market, a well-developed design ecosystem, supportive government policies, and concerted industry collaboration to tap global markets, the present juncture presents a unique opportunity for the establishment of semiconductor manufacturing in India. The report underscores India’s tremendous progress towards becoming a prime destination for electronics and semiconductor manufacturing, capitalizing on its robust semiconductor design ecosystem.”

An event launching the report will take place on Feb. 22 at 9 a.m. EST at ITIF (700 K St NW, Suite 600 Washington DC, 20001).

For report,

Also read,

CT Bureau

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2024 Communications Today

error: Content is protected !!