NEWS – India is set to witness its first commercial semiconductor chip assembled domestically at CG Semi’s OSAT facility in Sanand, Gujarat. IT Minister Ashwini Vaishnaw confirmed that the chip will be rolled out later this year from the company’s pilot line.

HIGHLIGHTS

What are Semiconductors?

• Semiconductors are materials (mainly silicon) used to create integrated circuits or chips.
• They contain millions of transistors, diodes, capacitors, and resistors that process, store, and transmit data.
• Applications: Computing, communications, defense, healthcare, clean energy, and transportation.

India Semiconductor Mission (ISM)

• Launched in 2021 under the Ministry of Electronics & IT (MeitY).
• Aim: Strengthen domestic chip design & manufacturing, reduce import dependence, create jobs, and build global talent.
• Financial outlay: ₹76,000 crore incentive package.

Government Push

• CG Semi Facility: Cleared in Feb 2024 with an investment of ₹7,600 crore, a JV between CG Power & Industrial Solutions, Renesas Electronics (US), and Stars Microelectronics (Thailand).
• Micron Project: First to get ISM approval; larger pilot line expected by Dec 2025.
• Recent Approval: Four new semiconductor assembly and testing plants sanctioned with ₹4,594 crore.

Challenges Ahead

• High capital investment and technological complexity.
• Shortage of skilled semiconductor professionals — global deficit of 1 million talents by 2030.
• Dependence on global supply chains for raw materials and advanced equipment.

Significance for India

• Strategic Move: Reduces import reliance and boosts self-reliance in electronics.
• Economic Impact: Enhances manufacturing ecosystem, attracts FDI, and generates employment.
• Talent Development: India poised to supply skilled professionals for global semiconductor demand.