SEMICONDUCTOR

INTRODUCTION

• Semiconductors are materials which have a conductivity between conductors and insulators. This unique property makes them essential components in a vast array of electronic devices.

• Most used semiconductor materials are silicon, germanium, and gallium arsenide.

SIGNIFICANCE:

• Tunable Conductivity: 

• Unlike conductors (metals) that readily conduct electricity and insulators (plastics) that resist it, semiconductors have an intermediate conductivity that can be manipulated. 

• Doping, the process of adding impurities, allows us to create regions within a semiconductor with either increased or decreased electron flow. This control forms the basis for various electronic functions.

• Building Blocks of Electronics:They are used to create fundamental electronics components like:

• Diodes: These one-way valves allow current to flow in one direction only. They are used in power supplies, voltage regulation, and signal processing. 

• Example: Converting AC current from the wall outlet to DC current for your laptop

• Transistors: These act as electronic switches, amplifying or regulating current flow. They are the fundamental building blocks of integrated circuits (ICs). 

• Example: The millions of transistors on a CPU that perform calculations in your computer.

• Integrated Circuits (ICs): Also known as microchips, ICs contain billions of interconnected transistors and other components on a tiny silicon wafer. 

• They are the brains of modern electronics, responsible for complex information processing and control. 

• Example: The microchip in your smartphone that handles everything from making calls to running apps.

APPLICATIONS:

• Consumer Electronics: 

• From smartphones and laptops to TVs and game consoles, semiconductors power the devices we use daily. 

• They enable features like high-resolution displays, fast processing speeds, and efficient power management.

• Computers: 

• The central processing unit (CPU), graphics processing unit (GPU), and memory chips in computers are all built on semiconductor technology. 

• This allows for complex calculations, stunning visuals, and efficient data storage.

• Communication Networks: 

• Semiconductors are crucial for routers, switches, and other network infrastructure that enables internet connectivity and mobile communication.

• Automotive Industry: 

• Modern cars rely heavily on semiconductors for engine control units, safety systems, and advanced driver-assistance features (ADAS).

• Medical Technology:

• Semiconductors are used in medical imaging equipment, pacemakers, and other life-saving devices. They enable advancements in diagnostics, treatment, and patient monitoring.

• Renewable Energy: 

• Semiconductors are essential components of solar panels, wind turbines, and other renewable energy technologies. 

• They help convert sunlight and wind energy into usable electricity.

CHALLENGES FACED BY INDIA IN SEMICONDUCTOR MANUFACTURING:

• Required Huge Capital Investment: 

• Establishing a semiconductor fabrication plant (fab) demands hefty investments due to the need for advanced cleanrooms, state-of-the-art equipment, and ultra-pure materials. 

• Example: TSMC, a prominent chip manufacturer, recently revealed plans for a $100 billion injection into its fabs over the next three years.

• This discourages private companies in India, as the return on investment might take a long time.

• Lack of Cutting-Edge Technology:  

• Currently, India focuses on "lagging-edge" technology nodes, which are a generation or two behind the most advanced chips.

• This limits their ability to compete with established players like Taiwan and South Korea who produce the latest semiconductors.

• Immature Ecosystem:  

• India lacks a robust domestic supply chain for raw materials, equipment, and testing facilities. 

• This dependence on foreign imports can create bottlenecks and increase costs.

• Resource Shortage: 

• Rare earth minerals: A report by India Exim Bank highlights China's dominance in the global Rare Earth Elements (REE) supply chain, with India relying on them for a significant portion of its needs.

• Skilled Workforce Shortage:  

• Building and operating fabs require a highly skilled workforce with expertise in physics, materials science, and microfabrication techniques. 

• While India has a large pool of engineers, there's a gap in specialists needed for chip manufacturing.

• Experts predict India will need around 1.5 million skilled workers in the semiconductor industry by 2026-27.

• Infrastructure Bottlenecks:  

• Semiconductor fabs require uninterrupted power supply, massive amounts of ultrapure water, and special waste disposal systems. 

• India's current infrastructure might not be able to reliably meet these demands.

• For example, a power outage at a fab can damage expensive equipment and ruin entire batches of chips.

INDIAN GOVERNMENT INITIATIVES 

• India Semiconductor Mission (ISM)

• As part of Atma Nirbhar Bharat vision, Government of India launched this mission in 2021 with a total financial outlay of Rs76,000 crore under the aegis of the Ministry of Electronics and IT (MeitY).

• The programme aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystem.

• Scheme for setting up of Semiconductor Fabs in India

• Scheme for setting up of Display Fabs in India

• Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / (Outsourced Semiconductor Assembly and Test) OSAT facilities in India.

• Design Linked Incentive (DLI) Scheme

• IndiaAI Mission:

• The India AI Mission Initiative, led by the Ministry of Electronics and Information Technology, aims to implement a structured approach to fostering India's AI innovation ecosystem through a public-private partnership model.

• IndiaAI Compute Capacity: India AI Mission aims to develop AI compute infrastructure of 10,000 or more Graphics Processing Units (GPUs) through public-private partnerships.

• Budgetary Allocation:

• In the 2024 interim budget, the Indian government allocated Rs 6,903 crore for semiconductor and display manufacturing, which is a 130% increase from the 2023-2024 budget of Rs 3,000 crore.

• Production Linked Incentive (PLI) Scheme: 

• The PLI scheme offers financial incentives for companies that manufacture electronic components and semiconductors in India.

• Exploration and Resource Assessment:

• Geological Survey of India (GSI) & Atomic Minerals Division (AMD): 

• These organisations are conducting extensive exploration activities to identify and assess potential Rare Earth Minerals deposits within India. 

• Leveraging the Mines and Minerals (Development and Regulation) Amendment Act 2023:

• Private Sector Participation: The act allows private companies to explore and potentially mine certain REMs. This opens doors for increased exploration efforts and potentially faster development of domestic REM resources 

• FDI: The government of India allows 100% foreign direct investment (FDI) in the electronics system design manufacturing (ESDM) sector, which includes the semiconductor industry. 

WAYFORWARD 

• Financial Incentives: 

• Continue offering competitive financial packages like subsidies and tax breaks to attract investments for fabs and chip design facilities. 

• Example: The US is providing a USD 3.5 billion subsidy to their domestic semiconductor manufacturing units.

• Infrastructure Development:

• Example: Taiwan's Hsinchu Science Park is a prime example. It houses major chipmakers like TSMC and boasts advanced infrastructure, research institutions, and a skilled workforce, making it a global hub for semiconductor manufacturing

• Building a Robust Ecosystem: 

• Develop a strong domestic supply chain for raw materials, equipment, and testing services. 

• Partner with existing players and encourage new ventures, similar to South Korea's model

• Example:Samsung partnered with Micron Technology for memory chip production, leveraging combined resources and knowledge.

• Talent Development:

• Collaboration with Academia: The government should partner with universities and institutions like IITs (Indian Institutes of Technology) to develop specialised curriculum and training programs in semiconductor design and manufacturing.

• International Collaboration: 

• Collaborating with international partners can facilitate technology transfer, access to global markets, and knowledge sharing. Joint ventures, strategic alliances, and participation in industry consortia can help Indian semiconductor manufacturers compete effectively on the global stage.

• Investment in Research and Development: 

• Promoting investment in research and development while fostering partnerships among industry, academia, and research institutions can facilitate technological advancements in the semiconductor sector.

• Example: South Korea heavily invests in advanced fabs.

• Companies like Samsung possess some of the world's most sophisticated fabrication facilities, allowing them to manufacture cutting-edge chips.

  
  

  SHORT TAKE

  • Advanced Driver-Assistance System (ADAS) 

  • It is a collection of technologies that utilise sensors, cameras, radar, and other advanced technologies to gather real-time data about a vehicle's surroundings. 

  • This data is then used to provide the driver with information and take corrective actions to avoid accidents or enhance the driving experience.

CONCLUSION