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Semiconductor Fabrication in India
Context:
As incentives for semiconductors sputter, course corrections are due
Current State of Semiconductor Production in India
- Investing in Semiconductor Fabrication: India has strategically invested substantial funds in semiconductor fabrication, recognizing its pivotal role across industries through the Production-Linked Incentive (PLI) schemes.
- Underutilized Funds and Strategic Concerns: Despite the financial backing, concerns arise due to the underutilization of these funds, prompting a critical evaluation of the strategy's effectiveness.
- Strength in Design, Gaps in Manufacturing: India boasts excellence in semiconductor design however, attention is warranted to bridge the gaps in the manufacturing ecosystem. Strengthening this aspect is crucial for a comprehensive and successful semiconductor strategy in the country.
India Semiconductor Mission and PLI Schemes
- Strategic Mission for Semiconductor Ecosystem: The India Semiconductor Mission (ISM) stands as a pivotal initiative. Despite its significant allocation of funds, the mission faces challenges that need careful consideration.
- PLI Schemes' Limited Impact: Existing Production-Linked Incentive (PLI) schemes, despite their substantial funding, demonstrate limited promise concerning employment generation and value addition. The need for a more comprehensive approach becomes evident as the impact falls short of expectations.
- Challenges with Large Manufacturing Emphasis:The emphasis on incentivizing large manufacturing plants raises concerns about the limited scope of these incentives. Multinational chipmakers exhibit hesitancy in making substantial commitments, highlighting the need for a nuanced and adaptable strategy.
Clarity and Tangible Outcomes for Effective Spending
- Strengthening Semiconductor Design and Overcoming Challenges: To fortify India's position in the semiconductor domain, there is a pressing need to bolster efforts in semiconductor design. Additionally, addressing challenges in establishing semiconductor wafer fabrication units is crucial for a resilient and competitive semiconductor ecosystem.
- Tangible Outcomes: India's semiconductor strategy should be aligned with tangible outcomes. Whether the goal is safeguarding cyber sovereignty, making electronics more affordable for Indian consumers, or positioning India as a global manufacturing center, clarity on objectives is crucial.
- Focused semiconductor strategy: This clarity can help in course correction before massive spending occurs with minimal results, ensuring a more effective and focused semiconductor strategy for India's technological future.
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