India's semiconductor manufacturing: Has a strong foundation been laid?
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Two years after India brought in a scheme to promote semiconductor manufacturing, it is yet to approve a chip fab application. India's dream of becoming a semiconductor hub isn't new, but hopes soared when the government announced a production-linked incentive scheme worth Rs 76,000 crore for chip and display fabrication units. However, setting up a foundry is an expensive affair, costing between $2 billion and $20 billion, and takes six to eight years to break even. India's nascent chip ecosystem has some distance to go to meet the demands of infrastructure, skilled talent pool, proximity to major clients and markets, lead times and shipping risks, and geopolitical stability. The government is hopeful that once the ecosystem is set up, the floodgates will open. However, there is a dearth of skilled workers in India, and the country lacks manufacturing-grade technology (MGT) companies as technology partners. The infrastructure and operational costs for setting up a semiconductor fab in India are significantly higher than other potential locations like China and Taiwan. The availability of raw materials and the presence of fabless and electronics product companies also pose challenges. India has been aggressive in pitching the country to semiconductor majors and addressing gaps in infrastructure, but it still has a long way to go.
#SemiconductorManufacturing #ChipFab #Production-linkedIncentiveScheme #Foundry #SkilledWorkers #Manufacturing-gradeTechnology #Infrastructure #RawMaterials #FablessCompanies #ElectronicsProductCompanies
https://www.businesstoday.in/magazine/deep-dive/story/indias-semiconductor-manufacturing-has-a-strong-foundation-been-laid-416123-2024-02-04
Business Today /
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2024-02-04 14:51:50
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2024-02-04 14:51:50Event JSON
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"content": "India's semiconductor manufacturing: Has a strong foundation been laid?\n==========\n\nTwo years after India brought in a scheme to promote semiconductor manufacturing, it is yet to approve a chip fab application. India's dream of becoming a semiconductor hub isn't new, but hopes soared when the government announced a production-linked incentive scheme worth Rs 76,000 crore for chip and display fabrication units. However, setting up a foundry is an expensive affair, costing between $2 billion and $20 billion, and takes six to eight years to break even. India's nascent chip ecosystem has some distance to go to meet the demands of infrastructure, skilled talent pool, proximity to major clients and markets, lead times and shipping risks, and geopolitical stability. The government is hopeful that once the ecosystem is set up, the floodgates will open. However, there is a dearth of skilled workers in India, and the country lacks manufacturing-grade technology (MGT) companies as technology partners. The infrastructure and operational costs for setting up a semiconductor fab in India are significantly higher than other potential locations like China and Taiwan. The availability of raw materials and the presence of fabless and electronics product companies also pose challenges. India has been aggressive in pitching the country to semiconductor majors and addressing gaps in infrastructure, but it still has a long way to go.\n\n#SemiconductorManufacturing #ChipFab #Production-linkedIncentiveScheme #Foundry #SkilledWorkers #Manufacturing-gradeTechnology #Infrastructure #RawMaterials #FablessCompanies #ElectronicsProductCompanies\n\nhttps://www.businesstoday.in/magazine/deep-dive/story/indias-semiconductor-manufacturing-has-a-strong-foundation-been-laid-416123-2024-02-04",
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