India to Soon Start Semiconductor Manufacturing, Production: IT Secretary

Electronics and IT secretary Alkesh Kumar Sharma on Tuesday said that the production of semiconductors in the country will start very soon.

He was responding to a query around plan of action of the Ministry of Electronics and IT after state-owned company Energy Efficiency Services Limited (EESL) raised the issue of shortage of electronic chip and printed circuit board (PCB or motherboard) hindering domestic production of electric meters.

“India will be one of those top 6-7 partners which will have semiconductor manufacturing. It will happen very soon,” Sharma said.

Speaking at a conference on technology transfer by C-DAC, Thiruvananthapuram for local manufacturing of smart meters and electric chargers, Sharma said Meity has taken lead in technology development, be it electronic or automotive sector, artificial intelligence.

“We have taken a lead when it comes to the climate change initiative. One big component is the shift towards green technology, and EV is an important mission in that. Demand is increasing. We need 5,000 chargers at present in the top 20 cities of India. ToT for EV will provide immense benefit to the country,” he said.

The C-DAC, Thiruvananthapuram under the National Mission on Power Electronics Technology (NaMPET) programme has developed a Smart Energy Meter based on Indian standards and is suitable for Advanced Metering Infrastructure (AMI).

Sharma said that the development of local smart meters will enhance efficiency in metering, reduce power consumption, people will get correct bills and benefit power distribution companies.

A senior official from EESL said that it is a transient phase from conventional smart meters to digital smart meters.

“As on date we are facing challenges like hardware components, chips and PCBs (printed circuit board) are not available because of which we all have to depend on different countries. Thanks to C-DAC for developing indigenous technology, we will have our own manufacturing. Our own country PCB should be there,” the officer said.


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Semiconductor Manufacturing in India: Government to Provide 50 Percent Incentive for Chip Fabs

The union cabinet chaired by Prime Minister Narendra Modi on Wednesday approved a proposal to provide 50 percent financial incentives for the manufacturing of semiconductor fabs across technology nodes as well as for compound semiconductors, packaging, and other chip facilities.

The cabinet approved modifications in “Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India.”

Under the modified programme, a uniform fiscal support of 50 percent of Project Cost shall be provided across all technology nodes for setting up of Semiconductor Fabs.

Given the niche technology and nature of compound semiconductors and advanced packaging, the modified programme shall also provide fiscal support of 50 percent of Capital Expenditure in pari-passu mode for setting up of compound semiconductors / silicon photonics / sensors / Discrete semiconductors fabs and ATMP/OSAT, according to an official statement released after the cabinet meeting.

The programme has attracted many global semiconductor players for setting up fabs in India. The modified programme, will expedite investments in semiconductor and display manufacturing in India. On the basis of discussion with potential investors, it is expected that work on setting up of the first semiconductor facility will commence soon.

An Advisory Committee comprising global experts from industry and academia was constituted to advise India Semiconductor Mission — the nodal agency for the Programme for the development of semiconductors and display manufacturing ecosystem in India.

Advisory Committee has unanimously recommended uniform support for all technology nodes of silicon semiconductor fabs / Silicon Photonics / Sensors / Discrete Semiconductor Fabs and ATMP/OSAT, which has been accepted by the Government.

The technology nodes of 45nm and above have high demand which is inter-alia driven by Automotive, Power and Telecom applications. Moreover, this segment constitutes around 50 percent of the total semiconductor market, the Ministry of Electronics & IT said in the statement.


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