India’s first National Security Semiconductor Fabrication Plant

India, with the help of US Space Force, will set up its first semiconductor fabrication plant solely dedicated to national security, an initiative that will provide critical chips to the US military, allied forces, and India’s own defence sector.

Key Highlights

• Named 'Shakti,' the fabrication plant will be one of the world's first multi-material fabs dedicated to national security. The facility is likely to come up in UP's Jewar in 2025.
• The new semiconductor plant is set to specialise in the production of advanced components for a range of crucial applications, including national security, next-generation telecommunications, and green energy technologies.
• Key Partnerships: The initiative involves collaboration with strategic partners like Bharat Semi and 3rdiTech, alongside the US Space Force.
• Types of Semiconductors: The facility will specialize in advanced semiconductors, including infrared, gallium nitride, and silicon carbide, vital for cutting-edge applications.
  • The infrared, gallium nitride and silicon carbide semiconductors fall under the category known as compound semiconductors. According to sources, India’s current imports bill for these semiconductors for national security alone is USD 1 billion a year
• The initiative supports India’s National Quantum Mission and aligns with India's broader goals in semiconductor manufacturing (India Semiconductor Mission).
• Future Space Cooperation: Furthermore, both countries are also likely to work in the space sector, with both countries making strides towards the first joint NASA-ISRO mission to the International Space Station in 2025.
• Other efforts to strengthen semiconductor supply chains
  • GlobalFoundries’ (GF) new GF Kolkata Power Center: It will foster collaboration in chip manufacturing research and development. It is expected to drive breakthroughs in zero and low-emission technologies, connected vehicles, the Internet of Things (IoT), artificial intelligence (AI), and data centers.

Role of Semiconductors

• Semiconductors is a foundational industry. With the advent of artificial intelligence (AI), chips are being used in medical instruments, mobile phones, laptops, cars, trucks, trains, televisions and practically every device on earth India is a major consumer of chips and has built the world's best digital public infrastructure (DPI) on this chip.
• This small chip is playing a significant role in ensuring last-mile delivery in Bharat.
• Whether it is the unified payments interface (UPI), RuPay card, Digi Locker, or Digi Yatra, various digital platforms have become part of everyday life.
• The demand for data centres in the country is continuously rising and these run on chips.
• Key-Initiatives: Semicon India Programme and the India Semiconductor Mission (ISM)
  • India has been elected Vice Chair of the Indo-Pacific Economic Framework's Supply Chain Council.
  • India is also a significant partner in the QUAD Semiconductor Supply Chain Initiative.
  • Other than US, it has recently signed agreements with several countries including Japan and Singapore.
  • The chip fabrication facility in Dholera, Gujarat, is being set up by Tata Electronics.
  • The Semiconductor Assembly, Testing, Marking and Packaging (ATMP) facility in Morigaon, Assam is being set up by Tata Electronics.
  • The Maharashtra government has approved a chip manufacturing project (Panvel in Raigad district), to be jointly set up by Israel's Tower Semiconductor and the Adani Group.
  • The Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat is being set up by CG Power and Industrial Solutions Ltd.
  • The Cabinet has also approved the proposal of Kaynes Semicon to set up a semiconductor unit in Sanand, Gujarat.

Significance of the Agreement

• Strengthening commercial sector: It will focus on three essential pillars for modern war fighting: advanced sensing, advanced communications and high voltage power electronics. These three areas also have huge growing needs for commercial sectors such as railways, telecom infrastructure and data centres and green energy.
• National asset: This facility will be seen as a national asset, further advancing India’s ambitions to become a net security provider in the region. India currently imports semiconductors worth USD 1 billion annually for national security purposes alone.