Why in the News?
India and the US have entered into an agreement to establish a semiconductor fabrication plant aimed at producing chips for national security, next-generation telecommunications, and green energy applications.
Key Features of the Semiconductor Fabrication Plant
- The semiconductor fab will focus on advanced sensing, communication, and power electronics.
- The India Semiconductor Mission will support the project and involves a strategic partnership between Bharat Semi, 3rdiTech, and the US Space Force.
- The plant will manufacture infrared, gallium nitride, and silicon carbide semiconductors, critical components for national security and commercial sectors.
Shakti Partnership
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About India’s Semiconductor Mission (ISM):
| Details | |
| Launch Year | 2021 |
| Financial Outlay | ₹76,000 crore under the Ministry of Electronics and IT (MeitY) |
| Objective | • Develop a sustainable semiconductor and display ecosystem in India • Reduce reliance on imports • Position India as a global leader in semiconductor manufacturing |
| Core Focus | Financial support for investments in: – Semiconductor fabs – Display fabs – Semiconductor design – Assembly, Testing, Marking, and Packaging (ATMP) facilities |
| Components of ISM | |
| Scheme for Semiconductor Fabs | • Provides fiscal support for setting up semiconductor wafer fabrication (fabs) facilities • Aims to attract large investments for semiconductor fabs in India |
| Scheme for Display Fabs | • Offers fiscal support for setting up TFT LCD/AMOLED display fabs • Encourages investments in display fabrication technologies |
| Scheme for Compound Semiconductors | • Provides 30% capital expenditure support for setting up Compound Semiconductors, Silicon Photonics, Sensors, and ATMP/OSAT facilities |
| Design Linked Incentive (DLI) Scheme | • Offers financial incentives and design infrastructure support for semiconductor design |
Significance of Next-Generation Telecom
- Next-gen telecom (5G and beyond) will revolutionize industries with high-speed internet, IoT, AI, and smart infrastructure.
- It is crucial for national security, economic competitiveness, and advancing green energy and sustainable development.
- India’s adoption of 5G will drive innovation across sectors, promoting technological self-reliance and global leadership in telecommunications.
