ICEA provides a roadmap for India to dominate the world in the semiconductor value chain
Delhi, New: According to a report released on Thursday, India will soar to the top of the global semiconductor industry by investing in refurbished fabrication units, leveraging global opportunities, bridging the skills gap, improving funding mechanisms, and offering strategic support to chip design firms as it sets out on its ambitious journey.
Prime Minister Narendra Modi dedicated the first of three Rs 1.25 lakh crore semiconductor projects in March. December is expected to see the arrival of the first “Made in India” chip, which will come from the Rs 22,500 crore Micron semiconductor factory in Gujarat.
As to Ashwini Vaishnaw, Minister of Union Railways and IT, the nation would produce “300 crore semiconductor chips in a year” by 2029, in addition to meeting its domestic need for semiconductors.
The India Cellular and Electronics Association (ICEA) published a paper detailing the strategic roadmap and practical suggestions for the nation, with a focus on developing semiconductor design and core IP creation, in light of recent advancements in the homegrown chip manufacturing industry.
“As we navigate through a transformative era in electronics manufacturing and hi-tech technology, India stands at a pivotal juncture to redefine its role in the semiconductor value chain,” said Pankaj Mohindroo, Chairman of ICEA, the top organization representing the electronics sector.
The need to create a comprehensive design ecosystem that covers the whole electronics value chain was emphasized in the paper.
In order to ensure a thriving local semiconductor design ecosystem, this involves encouraging significant Indian corporates and original equipment manufacturers (OEMs) to become involved in semiconductor design and core IP development.
Furthermore, it recommended the inclusion of mask sets in the design-linked incentive (DLI) system and argued for strong policy and political support.
The results demonstrated that “a measure to facilitate the emergence of a strong Indian Intellectual Property Rights (IPR) framework is proposed: subsidising the cost of mask sets by up to 80 per cent for Indian design firms.”
It also emphasized how crucial creative financing strategies are to maintaining the semiconductor design ecosystem.
“With the global shift in semiconductor manufacturing dynamics, particularly due to US sanctions on China, ICEA sees a strategic opportunity for India to advance into sub-14 nm technology nodes,” the paper said.
India may use surplus capacity, such as that of Taiwan’s largest semiconductor company TSMC for 7nm technology, to jumpstart its entrance into the production of sophisticated semiconductors.
“This report is a clarion call for unified action across government, industry, and academia to propel India into a leadership position in the global semiconductor arena,” Mohindroo said.
