Central government approved of 3 new manufacturing units for semiconductor under the initiative “Development of Semiconductors and Display Manufacturing Ecosystems in India”.
About the 3 New Units:
- 3 New Units will be established by private sectors in Gujarat’s Dholera and Sanandand Assam’s Morigaon.
- India now has 4 semiconductor manufacturing facilities after the inclusion of the 3 new units.
- These approvals are significant because they are expected to create a “ripple effect” that accelerates job opportunities in downstream industries like automotive, electronics, telecom, and industrial sectors that utilize semiconductors, thereby enhancing India’s manufacturing capacity and export-oriented components production.
- With the increase in electric vehicle (EV) production in India, the use of semiconductors in safety, electrification, communication, and networking is also projected to rise. Currently, India imports about USD 24 billion worth of semiconductors, mainly from Taiwan, China, Korea, and Vietnam.
About the Semiconductor:
- A semiconductor is a material with conductivity between that of conductors and insulators, used in electronic devices like diodes, transistors, and integrated circuits, and is crucial for technologies such as AI, clean energy, computing, and IoT.
- It comes in 2 types: pure elements (e.g., silicon, germanium) and compounds (e.g., gallium arsenide, cadmium selenide), with its conductivity altered through a process called doping.
Government support for Semiconductors:
- Government increased allocation in the interim budget for semiconductor and display manufacturing.
- Government will provide fiscal incentives of up to 50% of project costs for setting up semiconductor fabs and display fabs.
Significance of Semiconductor for India:
- It is expected to generate direct and indirect employment of about 20,000 for high-tech positions and 60,000 for additional jobs.
- It can have a ripple effect on downstream industries, leading to over 300,000 jobs by 2026.
- Indian semiconductor market will reach US$100.2 billion by 2032.
- With the rise of production of electric vehicles (EVs) in India, it is projected that semiconductor use in fields including safety, electrification, communication, and networking will rise.
Ref:Source
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