1. What is the purpose of the semiconductor and display manufacturing initiative announced by the Indian government?
The initiative aims to develop a sustainable semiconductor and display manufacturing ecosystem in India. It targets positioning India as a global hub for electronics manufacturing, with semiconductors and displays serving as foundational elements. The program seeks to enhance technological leadership, economic self-reliance, and integration into the global value chain.
2. When was the semiconductor and display manufacturing initiative approved?
The Union Cabinet approved the comprehensive program on 15th December 2021.
3. How much funding has the Indian government allocated to this program?
The government has allocated Rs. 2,30,000 crore (approximately USD 30 billion) to support the development of the semiconductor and display manufacturing ecosystem.
4. Who benefits from the semiconductor and display manufacturing initiative?
The program provides attractive incentive support to companies engaged in various segments of the semiconductor ecosystem, including silicon semiconductor fabs, display fabs, compound semiconductors, semiconductor packaging (ATMP/ OSAT), and semiconductor design. It also encourages semiconductor designers to start their startups by covering half of the costs, fostering innovation and entrepreneurship.
5. What is the significance of developing a semiconductor and display manufacturing ecosystem in India?
This development holds strategic importance for national security, particularly in ensuring trusted sources of semiconductors and displays. It aims to create high-skilled job opportunities, thus leveraging India's demographic dividend. Moreover, it will have a broad impact on different economic sectors by enhancing India’s role in the global value chain and establishing technological leadership.
6. How does the initiative impact India's position in global electronics manufacturing?
By offering globally competitive incentives to semiconductor and display manufacturing and design companies, the initiative is poised to mark a new era in electronics manufacturing in India. It aims to make India a critical player in the global electronics market, ensuring economic growth and technological advancement.
7. What strategic and economic outcomes are expected from this program?
The program is expected to ensure India's technological leadership, economic self-reliance, and secure a significant position in the strategic and critical information infrastructure security globally. It also aims to boost the country's participation in the global electronics and semiconductor market, contributing to overall economic growth and development.
This initiative represents a significant step towards India’s ambition to become a key player in the global semiconductor and display manufacturing industry, crucial for the nation's economic and strategic growth in the era of digital transformation under Industry 4.0.
