Why in news?

The Union Cabinet approved modifications in the scheme for development of the semiconductor and display manufacturing ecosystem, with a uniform fiscal support of 50% project cost for all technology nodes for setting up of semiconductor fabrication units.

Highlights:

• Given the niche technology and nature of compound semiconductors and advanced packaging, the modified programme will also provide fiscal support of 50% of Capital Expenditure in pari-passu mode for setting up of compound semiconductors / silicon photonics / sensors / Discrete semiconductors fabs and ATMP/OSAT [Assembly Testing Marking and Packaging/ Outsourced Assembly and Test.
• The programme had attracted many global semiconductor players for setting up fabs in India and the modified programme would expedite investments in semiconductor and display manufacturing in India.
• The Advisory Committee, constituted to advise India Semiconductor Mission – the nodal agency for the programme, had unanimously recommended uniform support for all technology nodes of silicon semiconductor fabs / Silicon Photonics / Sensors / Discrete Semiconductor Fabs and ATMP/OSAT, and that it had been accepted by the government.

Semiconductors

• Any of a class of crystalline solids intermediate in electrical conductivity between a conductor and an insulator.
• Semiconductors are employed in the manufacture of various kinds of electronic devices, including diodes, transistors, and integrated circuits. Such devices have found wide application because of their compactness, reliability, power efficiency, and low cost.
• As discrete components, they have found use in power devices, optical sensors, and light emitters, including solid-state lasers.

• The technology nodes of 45nm and above have high demand, driven primarily by automotive, power and telecom applications. Moreover, this segment constitutes about 50% of the total semiconductor market, it added.