Electronic System Design and Manufacturing Sector – M-SIPS, National Policy on Electronics, etc.

India, USA signed pact to set up Semiconductor Pact for National Security

Prelims Only | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Shakti Partnership, QUAD

Why in the News?

India and the US have entered into an agreement to establish a semiconductor fabrication plant aimed at producing chips for national security, next-generation telecommunications, and green energy applications.

Key Features of the Semiconductor Fabrication Plant

  • The semiconductor fab will focus on advanced sensing, communication, and power electronics.
  • The India Semiconductor Mission will support the project and involves a strategic partnership between Bharat Semi, 3rdiTech, and the US Space Force.
  • The plant will manufacture infrared, gallium nitride, and silicon carbide semiconductors, critical components for national security and commercial sectors.

Shakti Partnership

  • The fab, titled “Shakti” (meaning power), is the first-ever technology partnership between Indian businesses and the US Space Force, and the first of its kind in the Quad, a strategic forum comprising India, the US, Japan, and Australia.
  • The project will focus on three key areas essential for modern warfare:
  1. Advanced sensing
  2. Advanced communications
  3. High-voltage power electronics
  • These areas also have significant applications in commercial sectors such as railways, telecom infrastructure, data centers, and green energy.

 

About India’s Semiconductor Mission (ISM):

Details
Launch Year 2021
Financial Outlay ₹76,000 crore under the Ministry of Electronics and IT (MeitY)
Objective • Develop a sustainable semiconductor and display ecosystem in India
• Reduce reliance on imports
• Position India as a global leader in semiconductor manufacturing
Core Focus Financial support for investments in:
– Semiconductor fabs
– Display fabs
– Semiconductor design
– Assembly, Testing, Marking, and Packaging (ATMP) facilities
Components of ISM
Scheme for Semiconductor Fabs • Provides fiscal support for setting up semiconductor wafer fabrication (fabs) facilities
• Aims to attract large investments for semiconductor fabs in India
Scheme for Display Fabs • Offers fiscal support for setting up TFT LCD/AMOLED display fabs
• Encourages investments in display fabrication technologies
Scheme for Compound Semiconductors • Provides 30% capital expenditure support for setting up Compound Semiconductors, Silicon Photonics, Sensors, and ATMP/OSAT facilities
Design Linked Incentive (DLI) Scheme • Offers financial incentives and design infrastructure support for semiconductor design

 

Significance of Next-Generation Telecom

  • Next-gen telecom (5G and beyond) will revolutionize industries with high-speed internet, IoT, AI, and smart infrastructure.
  • It is crucial for national security, economic competitiveness, and advancing green energy and sustainable development.
  • India’s adoption of 5G will drive innovation across sectors, promoting technological self-reliance and global leadership in telecommunications.

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