In News:

A Semiconductor Plant has been set up in Morigaon, Assam, projected for completion by mid-2025.

Overview of the Morigaon Semiconductor Plant:

• Location: Morigaon, Assam.
• Investor: Tata Semiconductor Assembly and Test Pvt Ltd (TSAT).
• Investment: ?27,000 crore.
• Production Capacity: Expected to produce 48 million semiconductor chips daily.
• Technology: Utilizes advanced packaging technologies such as flip chip and Integrated System in Package (ISIP).
• Sectors Served: Automotive, electric vehicles, telecommunications, consumer electronics.
• Completion: Projected to be completed by mid-2025.
• Job Creation: Expected to generate 15,000 direct jobs and 11,000-13,000 indirect jobs.
• Market Reach: Will serve both domestic and international markets, enhancing India's position in the global semiconductor supply chain.

India's Semiconductor Industry and Market Growth:

• Market Size (2023): Estimated at $38 billion.
• Projected Growth: Expected to grow to $109 billion by 2030.
• Government Initiatives: Several initiatives have been launched to promote domestic semiconductor manufacturing, including the India Semiconductor Mission (ISM) and the Semicon India Program.

India Semiconductor Mission (ISM):

• Objective: To build a self-reliant semiconductor ecosystem in India.
• Launched: 2021 with a financial outlay of ?76,000 crore.
• Scope: Covers semiconductor fabs, packaging, display manufacturing, Outsourced Semiconductor Assembly and Testing (OSAT), sensors, and other critical components.
• Support Schemes: Includes Modified Schemes for setting up Semiconductor and Display Fabs, as well as support for Compound Semiconductors, Silicon Photonics, and Sensors.

Key Projects in Semiconductor Industry:

• Morigaon Facility: Part of the broader government-backed initiative to enhance semiconductor production in India.
• Other Facilities: New semiconductor units by Tata Electronics (Dholera, Gujarat), CG Power (Sanand, Gujarat), and KaynesSemicon Pvt Ltd (Sanand, Gujarat).
• Modernization: The Semi-Conductor Laboratory in Mohali is being modernized, alongside initiatives like the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and the Production Linked Incentive (PLI) Scheme.

Strategic Importance of Semiconductors:

• Role in Modern Electronics: Semiconductors are critical for a wide range of devices like computers, smartphones, solar cells, LEDs, and integrated circuits.
• Global Dependence: The global semiconductor market has significant reliance on suppliers like Taiwan (44%), China (28%), and South Korea (12%).
• Global Shortage: The 2021 chip shortage highlighted the vulnerability of global supply chains, prompting efforts by countries to boost domestic semiconductor production.

Government Support for Semiconductor Manufacturing:

• Financial Incentives: The government offers fiscal support for setting up semiconductor manufacturing plants:
  • 50% of project cost support under the Semiconductor Fab Scheme and the Display Fab Scheme.
  • Support for Compound Semiconductors and Chips to Startup (C2S) initiatives.
  • Training 85,000 engineers through the C2S Programme in collaboration with academic institutions, R&D organizations, and MSMEs.