FINALLY A CHIP FABRICATION PLANT IN INDIA? THE PROGRESS SO FAR
- The Minister of State for Electronics and IT recently confirmed that the Tata Group and Israeli chip company Tower Semiconductor have applied to set up foundries in the country.
Key highlights
- Aside from boosting domestic job prospects, it will also offer India leverage in the chip wars by increasing its say in the geopolitics of technology
- That has so far been shaped by China and the United States.
- India is competing with some of its key allies – the US and Europe – to attract chipmakers.
What are the proposals currently on the table?
- India’s chip incentive scheme broadly covers three aspects of the ecosystem –
- Full-blown foundries that can manufacture chips
- Packaging plants called ATMP facilities;
- Assembly and testing projects called OSAT plants.
- So far, US-based Micron Technology has cleared its proposal to set up a $2.75 billion ATMP plant, with the facility coming up in Gujarat.
- The Tata Group is understood to have also applied for an ATMP plant.
Why is India focusing on semiconductor manufacturing?
- It is, therefore, clear that building semiconductors domestically is crucial for the government’s vision to develop a domestic electronics supply chain
- Eventually reduce its imports from foreign countries, especially China
- Which despite its own challenges remains to be the number one destination for such manufacturing.
Prelims Takeaway
- Semiconductor
- ATMP plant