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In the early twenty-first century; foreign investment, government regulations and incentives promoted growth in the Indian electronics industry . The semiconductor industry , which is its most important and resource-intensive sector, profited from the rapid growth in domestic demand. Many industries, including telecommunications, information technology, automotive, engineering, medical electronics, electricity and solar photovoltaic, defense and aerospace, consumer electronics, and appliances, required semiconductors. However, as of 2015, progress was threatened by the talent gap in the Indian sector, since 65 to 70 percent of the market was dependent on imports. [1]
India's electronics sector, which ranks among the world's largest in terms of consumption, is expected to increase from $69.6 billion in 2012 to $400 billion by 2020. It was primarily driven by an increase in demand, which was expected to expand at a compound annual growth rate of over 25% during that time. [2] Imports accounted for 65% of the demand for electrical products in 2013–14. A Frost & Sullivan-IESA data analysis indicates that 60% of total electronic usage can be attributed to five high priority product categories. These are, in descending order, desktop computers (4.39%), laptops (5.54%), mobile phones (38.85%), and flat panel display televisions (7.91%). [3]
The consumer electronics and appliance industry in India, which was valued at $9.7 billion in 2014, is expected to increase at a compound annual growth rate of 13.4% to reach $20.6 billion by 2020. Set-top boxes are expected to increase at the quickest rate among consumer electronics, with Y-o-Y growth of 28.8% forecast between 2014 and 2020. Televisions will grow at the rate of 20%, refrigerators at 10%, washing machines at 8–9%, and air conditioners at roughly 6-7%. [4] India's demand for IT devices was projected to be worth $13 billion in 2013. [5] By 2029–2030, it is estimated that India's aerospace and defense (A&D) electronics sector might be valued up to $70 billion, of which $55 billion could come from electronics used in platforms that need to be purchased and the other $70 billion from system-of-system initiatives. [6]
In 2012–13, 2013–14, and 2014–15, the total amount of electronic goods produced domestically was ₹164,172 crores, ₹180,454 crores, and ₹190,366 crores, respectively. [7] India's electronics hardware manufacturing sector is expected to generate $104 billion in electronic goods by 2020, up from $32.46 billion in 2013–14. India produced 1.6% of the world's electronics gear in FY13. With 31% of the entire production of electronic goods in India in FY13, the communication and broadcasting equipment industry held a leading position, followed by consumer electronics at 23%. [8] In the April–June quarter of 2015, 24.8% of the cellphones transported into the nation were either assembled or made in India, an increase from 19.9% the quarter before. [9] [10] [11]
Out of the 220 million mobile sets that were shipped in India in 2015–16, 110 million of those units were either manufactured or assembled there in the past year, up from 60 million the year before. [12] The value of mobile handset production increased by 185% in 2015–16, from ₹19,000 crores to ₹54,000 crores. [13] Turning the Make in India initiative into a reality for the electronics and hardware sector was the title of an ASSOCHAM-EY research. It predicted that the Indian electronics and hardware industry will develop at a CAGR of 13%–16% in 2013–18, from a level of $75 billion in 2016 to $112–130 billion by 2018. [14]
In May 2016, an NITI Aayog research stated that India's electronics sector contributes just 1.7% of GDP, but in Taiwan, South Korea, and China, it accounts for 15.5%, 15.1%, and 12.7% of GDP, respectively. [15] India now makes up less than 5% of the global electronics manufacturing sector, with the majority of its electronics production going towards the country's own market. [16]
In 2014, the percentage of localized input/value addition in televisions was approximately 25–30% due to the importation of panels, semiconductors, and glass required for the production of LCD/LED TVs. Due to the importation of the compressor, refrigerant, motor, and coil, the localization of air conditioners was only approximately 30% to 40%. About 35–40% of the parts used in set-top boxes came from within the country. For refrigerators and washing machines, the localized content was approximately 70%. [4] It is stated that in 2016, the percentage of localized value addition created in mobile phone assembly in India was barely 2-8%. [13]
The Ordnance Factory Board's Opto Electronics Factory (OLF), located in Dehradun, is a unique facility in India that produces opto-electronic goods for defense use [17] [18] Polymatech Electronics, located in Chennai, is another facility that produces Opto Semi-Conductor Chips. The Company signed MoU with Government of Tamil Nadu on 27 May 2020. The project was also acknowledged under SPECS program. Hon'ble Prime Minister of India has visited Polymatech Electronics at Semicon India 2023Samsung, a leading Korean electronics company, intends to begin producing laptops at its Noida plant in India in 2024. [19] Airport navigation aids are presently produced worldwide by Thales Reliance Defence Systems, a joint venture electronics company of Thales Group, while Bharat Electronics-Thales Systems, based in Bangalore, produces high-tech items like low-band receivers for the Dassault Rafale's electronic warfare suite. [20] On 18 January 2024, Grupo Antolin inaugurated a new production plant in Chakan for electronics, Human-Machine Interface systems, and advanced lighting. In India, Grupo Antolin provides parts to Volkswagen, Škoda Auto, Suzuki, Toyota, Mahindra & Mahindra, and Tata Motors. [21]
Lenovo intends to increase its manufacturing and is considering producing servers in India in order to benefit from the production-linked incentive (PLI) program for IT hardware. [22] In 2024, Samsung Electronics intends to begin producing laptops at its Noida plant. Already, preparations are in motion. [23] Intel showcased a comprehensive range of Made in India laptops and IT goods, including locally made servers, during the India Tech Ecosystem Summit 2024. [24] By Q2 2024, Google has instructed vendors to begin producing Pixel smartphones in India. The production line for Google's high-end Pixel 8 Pro will be ready first. [25] In India, Dixon Technologies is going to manufacture Google Pixel 8 smartphones. September 2024 will see the release of the first batch into the market. Monthly production of Pixel smartphones is expected to reach 100,000 devices, with 25–30% of those units going toward export. [26]
Apple Inc. plans to begin producing AirPods in India from 2025. With Jabil in Pune, the business has begun producing wireless charging case parts on a trial basis. Parts of AirPods wireless charging cases are already being produced by Jabil and delivered to China and Vietnam. [27]
India is a net importer of electronics, with China accounting for the majority of India's imports. Electronics surpassed gold in 2015 and now rank second in terms of value among all imports into the nation, right behind crude oil. [28] India is spending more money on semiconductor imports than on oil, according to research published in 2019 by Professor Vikram Kumar, an emeritus professor of physics at IIT Delhi. [29] According to a Ministry of Commerce and Industry report, one of the six industries that could assist India in reaching over 70% of its target of $1 trillion in goods exports by FY30 is electronics. [30]
The estimated value of India's electronics exports in FY13 was $7.66 billion, down slightly from $8.15 billion in FY12; however, due to the depreciation of the rupee, they increased in INR terms during the same time, rising from ₹44,000 crore to ₹46,300 crore. India's electronics exports were dominated in 2013–14 by the telecom sector, which was followed by computing, consumer electronics, instruments, and electronic components. The increasing demand for Indian electronics items overseas is believed to be mostly driven by advancements in technology and competitive cost-effectiveness. Indian exports of electronic gear nearly doubled in value from ₹109,940 crores in 2009–10 to ₹196,103 crores in 2013–14, measured in rupees. [8] India's electronics exports fell to $6 billion in FY14, accounting for 0.28% of the world's electronics trade. [28]
India recorded a 22.24% growth in electronics exports, exceeding the $20 billion milestone within the nine months of the FY 2023-24. Between April and December 2023, mobile phone exports—which made up 52% of all electronics exports—reached $10.5 billion. Notably, the iPhone became the main export engine during this time, accounting for 35% of all electronics exports and an astounding 70% of all mobile exports from the nation. The value of iPhone exports topped $7 billion only in December 2023. the nearly seven-fold increase in mobile exports, which went from $1.6 billion in FY19 to $11.1 billion in FY23. [31] In the same time frame, total electronics exports increased by almost three times, from $8.4 billion in FY19 to $23.6 billion in FY23. [32]
During their results call for the December quarter in 2023, Indian companies such as Havells, Dixon Technologies, Voltas, and Blue Star stated that they are building a foundation for exports to industrialized nations such as the US and those in Europe. Havells intends to supply air conditioners in the US market after establishing a company there. About 28–30% of Motorola smartphone output is now sent to the US as Dixon Technologies increases its exports of the devices. Appliance retailer Arçelik, which markets appliances in Europe under the Beko name, has placed export orders with Voltas for frost-free refrigerators and dishwashers. [33] India exported $29.12 billion worth of electronics in 2023–24, a 23.6 percent increase over the previous year. The United States, United Arab Emirates, Netherlands, United Kingdom, and Italy are the top five export markets for electronics goods. Exports also expanded into new markets in FY24, including Turkmenistan, Honduras, El Salvador, Mongolia, Montenegro, and the Cayman Islands. [34] Limited amounts of semiconductor chips packaged at Tata Electronics' Bengaluru R&D Center are now being exported to partners in the US, Europe, and Japan. Currently, these packed chips are under the trial program. [35]
For the US and European markets, Foxconn and Padget Electronics will produce the pro and base versions of the Pixel smartphone, respectively, along with other Google devices. Foxconn's Sriperumbudur factory has already begun trial production. Full-scale manufacturing is scheduled to begin in September 2024. [36]
In 2012–13, 2013–14, and 2014–15, the estimated total value of electronic products imports was ₹1,79,000 crore (US$28 billion), ₹1,95,900 crore (US$31 billion), and ₹2,25,600 crore (US$37 billion), respectively. [7] Based on data from the Ministry of Commerce and Industry, the importation of phones surged dramatically from $665.47 million in 2003–04 to $10.9 billion in 2013–14. Over the same time period, phone imports from China increased from $64.61 million to $7 billion. [37] China was responsible for 67% of India's $23.5 billion electronics trade imbalance in 2013–14. Electronics imports could reach $40 billion in FY16, up from about $28 billion in FY11. [28] In 2016, local electronics production started to grow, signaling the start of a recovery during a period of low Indian exports. Electronic exports increased by 7.8% to $0.5 billion in January 2016, while electronic imports, which made up 27% of India's annual trade imbalance, decreased by 2.2% to $3.2 billion. [38]
To promote overall growth and open job opportunities, projected to be more than 28 million by attracting investments worth $100 billion, the Indian central government has sought to reduce the country's electronics import bill from 65% in 2014–15 to 50% in 2016 and gradually to a net-zero electronics trade by 2020. [39] India has pursued a two-pronged strategy of import substitution and export encouragement, through the Make in India campaign coupled with the Digital India campaign, the Startup India [40] and the Skill India campaigns. The government has fostered an environment conducive to foreign direct investment (FDI) inflow in several ways, as outlined in the National Electronics Policy [41] and the National Telecom Policy. [42]
The National Institution for Transforming India (NITI Aayog), a policy think-tank under the Indian central government, has suggested in a draft report [47] that a policy be adopted to provide a tax holiday for ten years to firms investing US$1 billion or more that also create 20,000 jobs. The report, hinting at a policy tilt toward the Information Technology Agreement-2 (ITA -2), [48] also suggests that India should re-strategize its defensive policies regarding Free Trade agreements (FTAs) and aggressively pursue export-oriented policies to utilize these FTAs as opportunities to obtain duty-free access to the electronics markets of its FTA partners. [49]
The Indian government launched Digital India futureLABS on 3 February 2024, with the aim of doing research and development in the areas of automotive, computer, communication, industrial electronics, strategic electronics, and internet of things. Funding will originate from the Ministry of Electronics and Information Technology's R&D budget. The primary organization for creating the general strategy, SOPs, and guidelines for new businesses and other private sector enterprises engaged in those fields would be the Centre for Development of Advanced Computing (C-DAC). [50]
Between April 2000 and March 2016, the electronics industry in India attracted $1.636 billion in foreign direct investment (FDI) (equity capital component only; this amount excludes funds remitted through the Reserve Bank of India's NRI schemes). This represents 0.57% of the total FDI equity inflow that the nation received during the same period, totaling $288.51 billion. [51]
As of February 2016, the India Electronics and Semiconductor Association (IESA), a group that supports domestic production of computer hardware and electronic goods in India, reported that the government had received 156 proposals with investment commitments totaling INR1.14 lakh crore, or $16.8 billion, over the preceding 20 months. [52] As of May 2016, the government had approved 74 applications totaling ₹ 17,300 crores out of 195 investment proposals costing ₹ 1.21 lakh crore, while 27 projects had been rejected. [53] As of June 2016, the Indian electronics industry anticipates US$56 billion in investments over the following four years to reach its 2020 export target of over US$80 billion. [54] As of August 2016, 37 mobile manufacturing companies have invested in India during the previous year, resulting in the creation of 40,000 direct jobs and around 125,000 indirect jobs. [12]
Foxconn has pledged investment worth $5 billion to set up R&D and electronic manufacturing facilities in India within the next five years. [55] In January 2015, the Spice Global signed an MoU to set up a mobile phone manufacturing unit in Uttar Pradesh with an investment of ₹5 billion (US$60 million). [56] In January 2015, Samsung contemplated a joint public-private initiative under which 10 "MSME-Samsung Technical Schools" will be established in India. [57] In February, Samsung announced that it will manufacture the Samsung Z1 in its plant in Noida. In addition to mobile phones, Samsung's factories in Noida and Sriperumbudur produce appliances and consumer electronics such as refrigerators, LED televisions, washing machines, and split air conditioners. [58] In February 2015, Huawei opened an R&D center in Bengaluru with an investment of US$ 170 million. [59] [60] It is also setting up a telecom hardware manufacturing plant in Chennai, which has been approved by the central government. [61] In February 2015, Xiaomi began initial talks with the Andhra Pradesh government to begin manufacturing smartphones at a Foxconn-run facility in Sri City. In early August 2015, the company announced that the first manufacturing unit was operational [62] within seven months after it was conceived. [63] In August 2015, Lenovo commenced operations at a smartphone manufacturing plant in Sriperumbudur, run by the Singapore-based contract manufacturer Flextronics International Limited. The plant has separate manufacturing lines for Lenovo and Motorola, as well as separate quality assurance and product testing functions. [64] [65] Taiwan's major contract manufacturer, Wistron, which makes devices for companies such as BlackBerry, HTC and Motorola, announced plans in November 2015 to manufacture the devices at a new factory in Noida, Uttar Pradesh. [66] In December 2015, Micromax announced that it would set up three new manufacturing units in the Indian states of Rajasthan, Telangana and Andhra Pradesh at a cost of ₹3 billion (US$36 million). The plants may become operational in 2016, each employing 3,000-3,500 people. [67] [68] Phone manufacturer Vivo began manufacturing smartphones in December 2015 at a plant in Greater Noida, employing a workforce of 2,200 people. [69]
The US-based personal computing hardware multinational Dell Technologies, is looking to expand its capacity to export from India, at its laptop and computer manufacturing factory in Sriperumbudur, where it previously invested US$30 million. [5] [70] [71] Dell has plans of investing in the tunes of US$300 million through its venture fund arm Dell ventures, in Indian start-ups working in cloud computing, security and analytics as well as in the manufacturing of microprocessors and photo voltaic cells. [72] [73] Chennai-based Munoth Industries has partnered with China's Better Power for technological support as it aims to set up India's first Lithium-ion cell manufacturing plant in Tirupati in three phases by 2022 with an investment of ₹799 crores. The first phase of the project will be complete by 2019 and the latter phases by 2022. The plant is expected to generate 1,700 job opportunities. The company has invested ₹165 crore for the first phase, in which it would draw a capital investment of ₹25 crore from the Central Government under the Make In India scheme. The state government of Andhra Pradesh also will provide fiscal and operational incentives, including subsidies on taxes and power costs. The company intends to sell finished lithium ion cells to mobile phone manufacturers and battery pack manufacturers in India. [74] Together, MEL Systems and Services, Syrma SGS, O/E/N India, Sahasra Group, and Deki Electronics launched a new company called Awesense Five in February 2024. Its goal is to develop and produce industrial sensors in India, reducing reliance on imports and capturing the ₹7,000 crore domestic market, which includes the defence sector. [75]
The first commercial supercapacitor production facility in India has been established by KELTRON in Kannur. Chief Minister Pinarayi Vijayan officially opened it on October 1, 2024. The company has been collaborating on technology development with ISRO, the Naval Materials Research Laboratory, and the Centre for Materials for Electronics Technology. With an expenditure of ₹18 crore, the production facility's first phase has been established. In due time, the total investment will be ₹42 crore. The production capacity is approximately 2000 pieces per day. [76]
With the newly heralded era of the Internet of Things (IoT) [77] [78] [79] dictating that the new generation of interconnected devices be capable of smart-computing, the Indian semiconductor industry is set for a stable upsurge with bright prospects provided India's generic obstacles like redtape-ism, fund crunch and infrastructural deficits are adequately addressed.
The fast growing electronics system design manufacturing ( ESDM ) industry in India has design capabilities with the number of units exceeding 120. As stated by the Department of Electronics and Information Technology (DeitY), approximately 2,000 chips are being designed in India every year with more than 20,000 engineers currently employed to work on various aspects of IC design and verification. [80] According to a NOVONOUS report, the consumption of semiconductors in India, mostly import-based, is estimated to rise from $10.02 billion in 2013 to $52.58 billion by 2020 at a dynamic CAGR of 26.72%. The report estimates that the consumption of mobile devices will grow at a CAGR of 33.4% between 2013 and 2020, driving the share of mobile devices in semiconductor revenue up from 35.4% in 2013 to 50.7% in 2020. Moreover, the telecom segment is also expected to rise at a CAGR of 26.8% during 2013-20. The information technology and office automation segment are estimated to grow at a CAGR of 18.2% in the same period. The consumer electronics segment also is expected to grow at a CAGR of 18.8% over the seven years. The automotive electronics segment is expected to grow at a 30.5% CAGR from 2013 to 2020. The EDSM industry will also grow on the back of these high consumption-led industries. [81] Currently, almost all the semiconductor demand is met by imports from countries like the USA, Japan, and Taiwan. In the semiconductor sector, India has a significant human-capital pool which is currently concentrated in design, in the absence of an end-to-end manufacturing base. But the nascent ESDM segment in India is premised on competent domestic research by Indian universities and institutes across the entire semiconductor manufacturing value chain; namely, chip design and testing, embedded systems, process-related, EDA, MEMS and sensors, etc., which have contributed to a voluminous number of research publications. [82]
As of 2016, the government allows 100% FDI in the Electronics system manufacturing and design (ESDM) sector through an automatic route to attract investments including from Original Equipment Manufacturers (OEMs) and Integrated Device Manufacturers (IDMs), and those relocating to India from other countries, in addition to EMC, MIPS and other incentives and schemes provided to the electronics sector. [83]
The Department of Electronics and Information Technology (DeitY), in line with Skill India [84] campaign has launched an ₹ 49 crore scheme for capacity building in ESDM. [85] In October 2015, Infineon Technologies, a German semiconductor firm partnered with National Skill Development Corporation (NSDC) [86] to enhance skill and manpower in semiconductor technology, aimed at boosting the ESDM ecosystem in India. [87]
The India Electronics & Semiconductor Association (IESA) [88] has announced a SPEED UP and SCALE-UP of its talent development initiative to be implemented through the Centre of Excellence with the Electronics Sector Skills Council of India (ESSCI) and an MoU with the Visvesvaraya Technological University (VTU) and the RV-VLSI Design Center to build human capital in the ESDM field. [89] ESSCI, which has developed over 140 Qualification Packs (QP) / National Occupation Standards (NOS) across 14 sub-sectors of which Embedded System Design and VLSI are key domains absorbing engineers, established their first-ever Centre of Excellence (CoE) at BMS college of Engineering for VLSI and embedded system design. [90] IESA signed an MoU with Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) to encourage co-operation in technology and knowledge transfer and investment commitment to the domestic ESDM sector that can benefit both Indian and Taiwanese companies. [91] IESA also entered into a MoU with Singapore Semiconductor Industry Association (SSIA) in February 2015, with an objective to forge trade and technical cooperation tie-ups between the electronics and semiconductor industries of both the countries. [92]
The Department of Electronics and Information Technology (DeitY) has established an Electronics Development Fund (EDF) managed by Canara Bank ( CANBANK Venture Capital Funds or CVCFL) to provide risk capital and to attract venture funds, angel funds and seed funds for incubating R&D and fostering the innovative environment in the sector., [7] [93] the establishment of "Fund of Funds for Start-ups" (FFS) approved by the union cabinet as part of the EDF for contribution to various alternative investment funds or daughter funds, registered with Securities and Exchange Board of India which would extend funding support to start-ups, in line with the Start-up India Action Plan unveiled by Government in January 2016, will be beneficial to the start-ups in the ESDM space, according to IESA. [94]
The National Centre for Flexible Electronics (NCFlexE) at IIT Kanpur, the National Centre for Excellence in Technology for Internal Security at IIT Bombay and the Centre for Excellence for Internet of Things at NASSCOM, Bengaluru has been set up to promote the development of national capability in ESDM. [7]
In 2011, Hyderabad based semiconductor chip design services entity SoCtronics completed the first 28 nm design chip to be developed in India. [95] Bangalore-based Indian company Navika Electronics has designed GNSS/GPS SoC (System on Chip) chipsets based on ARM core processors under its own brand name for portable applications like receiving/down conversion and amplification of GPS and Galileo signals. [96]
The Centre for Nano Science and Engineering (CeNSE), IISc, Bengaluru, in collaboration with KAS Tech, a Bengaluru-based electronics manufacturing company, has developed 'Ocean', a highly integrated and portable chemical vapour depositor that can commercially produce various two dimensional materials including graphene, in an easy 'plug and grow' approach which can have various novel applications in the ESDM sector, for both academia and industry alike. [97]
In what could be viewed as a breakthrough for the country's electric automobile programme as well as indigenous electronics manufacturing, the Indian Space Research Organization (ISRO) and the Automotive Research Association of India (ARAI) together have developed and validated through tests, using ISRO's state of the art cell technology, a lithium-ion battery prototype for application in electric vehicles and looks forward to commercialising the technology through mass production by partnering with automotive companies. Currently India's lithium-ion battery requirements are completely met by import as there is no domestic manufacturing of these batteries. While the raw material for the batteries still has to be imported, the rest of the value chain can be synthesized domestically at a competitive cost, if the project clears all the barriers. [98] Researchers at the Indian Institute of Technology - Bombay (IIT-B), in a collaboration with ISRO's Semi-Conductor Labs (SCL), Chandigarh, have developed an indigenous Bipolar Junction Transistor (BJT) which can function with Bi-CMOS (Bipolar Complementary Metal Oxide Semiconductor). Analogue or mixed chips based on various digital Bi-CMOS technology with integrated analogue high frequency BJT based amplifiers are essential for IoT and space applications like high frequency communications as they reduce form factor, power consumption, weight and size dimensions and cost etc. [99]
During the Digital India FutureLABS Summit 2024, technologies for a CMOS-based vision processing system, a Thermal Smart Camera, and a Fleet Management System were distributed to 12 industries as part of Ministry of Electronics and Information Technology's InTranSE Program. A digital signal processor included inside the Thermal Smart Camera allows it to do a variety of AI-based analytics. Applications in smart cities, industry, defense, and healthcare are its main focus. With a potent on-board computing engine, the Industrial Vision Sensor iVIS 10GigE is a CMOS-based vision processing system designed to handle the demands of the upcoming industrial machine vision applications. The Fleet Management System tracks the position of vehicles and sends out notifications for a variety of situations, including reckless driving, overspeeding, ignition, idling, and stopping. It will also help improve the dependability of public transportation services by reducing the occurrence of bus bunching, as transit operators can employ operational techniques for headway reliability as a dynamic scheduling decision support tool. [100]
In 2014, the ESDM industry was projected to see investment proposals worth ₹ 10,000 crores (USD $1.5 billion) over the next two years, along with five partially state-funded start-up incubation centres of the 250 planned by the industry body, as per IESA. [101]
In February 2014, the union cabinet approved the setting up of these fab proposals with the decision to extend incentives as follows:
Starting January 1, 2022, the government started taking applications under its incentive scheme in developing a full ecosystem for the chip manufacturing industry and expects at least a dozen semiconductor manufacturers to start setting up local factories in the next several years. [103]
The Ministry of Finance has proposed a 71% increase in funding to ₹13,104.50 crore for the manufacturing of chips and electronics in the 2024 Union budget of India. [104]
As of mid 2016, there were no operational commercial Semiconductor fabrication plants in India.
The Centre of Excellence in Nanoelectronics (CEN), at the Indian Institute of Technology – Bombay, has a lab-like fab facility collaborated between IIT Bombay and IISc Bangalore that offers research in the design, fabrication and characterization of traditional CMOS Nano-electronic devices, Novel Material based devices (III-V Compound Semiconductor devices, Spintronics, Opto-electronics), Micro Electromechanical Systems (MEMS), NEMS, Bio-MEMS, polymer based devices and solar Photovoltaics to researchers across academia, industry and government laboratories, all over India. The center also offers support in device fabrication technologies using sophisticated equipment under the Indian Nano Users Program (INUP) and acts as a linchpin for developing innovative technologies that can be tweaked and commercialized for spurring the nano-industrial growth in India. [105]
A foundry for producing GaN nano material proposed to be extended around the existing facility for producing gallium nitride transistors, at the IISc's Centre for Nano Science and Engineering (CeNSE), Bangalore, at a cost of ₹ 3000 crore has received preliminary approval from the central government. [106]
Critics and detractors of the fab projects currently underway in India, in different conceptual phases, doubt the prospects of success of these capital-intensive projects, pointing to various reasons like marginal profitability due to overcapacity of output in a saturated and fiercely competed fab market, noncompetence of these particular fabs in terms of cost and performance related to the dimensions of CMOS nodes even in attracting domestic end-use industries which have access to the more sophisticated fabs outside the country, cost prohibitive maintenance and upgrades needed every few years to weather obsolescence, nonavailability of domestically procurable semiconductor-grade materials in absence of complementing ancillary manufacturing industries and other resource-intensive strings attached to such projects, including land acquisition requirements, necessity uninterrupted deionised water and power supplies, supply of critical gases such as nitrogen and argon, absence of skilled labour force and drain of an already inadequate number of experienced domestic talent pool in electronic engineering and R&D possessing expertise to overcome the barriers of related sensitive technologies for mass production towards other attractive sectors in absence of a major Indian player in the electronics sector, especially in a developing country like India, which is still grappling with infrastructural bottlenecks. [136] [137]
However, the endorsers of the fab projects, such as AMD, which partnered with HSMC for the fab project in Gujarat, stress the strategic need of developing the fabs as part of an end-to-end electronics manufacturing base in India which imports billions of dollars worth of even lower-end semiconductor nodes of 90 nm and above each year. [108] [138] Relevant circles within India have been advocating for investment by the central government with a long term strategic vision in the revolutionising fields of Gallium Nitride (GaN) and Mercury Cadmium Telluride (HgCdTe) based non silica semiconductor foundry and fab because of their wide ranged use like High Electron Mobility Transistor (HEMT) made from GaN in power electronics both for civilian and military applications which can switch at high speed and can handle high power and high temperature without needing any cooling and HgCdTe based high quality sensors for military space requirements. [139]
Taiwan Semiconductor Manufacturing Company Limited is a Taiwanese multinational semiconductor contract manufacturing and design company. It is the world's second-most valuable semiconductor company, the world's largest dedicated independent ("pure-play") semiconductor foundry, and its country's largest company, with headquarters and main operations located in the Hsinchu Science Park in Hsinchu, Taiwan. Although the central government of Taiwan is the largest individual shareholder, the majority of TSMC is owned by foreign investors. In 2023, the company was ranked 44th in the Forbes Global 2000. Taiwan's exports of integrated circuits amounted to $184 billion in 2022, accounted for nearly 25 percent of Taiwan's GDP. TSMC constitutes about 30 percent of the Taiwan Stock Exchange's main index.
The semiconductor industry is the aggregate of companies engaged in the design and fabrication of semiconductors and semiconductor devices, such as transistors and integrated circuits. It formed around 1960, once the fabrication of semiconductor devices became a viable business. The industry's annual semiconductor sales revenue has since grown to over $481 billion, as of 2018.
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Hon Hai Precision Industry Co. Ltd., trading as Hon Hai Technology Group in China and Taiwan, and known as Foxconn Technology Group internationally, is a Taiwanese multinational electronics contract manufacturer established in 1974 with headquarters in Tucheng District, New Taipei City, Taiwan. In 2023, the company's annual revenue reached 6.16 trillion New Taiwan dollars and was ranked 20th in the 2023 Fortune Global 500. It is the world's largest contract manufacturer of electronics. While headquartered in Taiwan, the company earns the majority of its revenue from assets in China and is one of the largest employers worldwide. Terry Gou is the company founder and former chairman.
In the microelectronics industry, a semiconductor fabrication plant is a factory for semiconductor device fabrication.
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The Semi-Conductor Laboratory (SCL), Mohali is a research institute under the Ministry of Electronics and Information Technology, Government of India. SCL was formerly under the Department of Space. SCL's aims include research and development (R&D) in the field of semiconductor technology. Semiconductors manufactured by SCL have been used in the Mars Orbiter Mission. The Indian Government is attempting to modernize SCL and upgrade its facilities.
The economy of West Bengal is a mixed middle-income developing social market economy and the largest Eastern Indian economy with a substantial public sector. It is the India's sixth-largest economy by nominal GDP.
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The electronics industry in China grew rapidly after the liberalization of the economy under the national strategic policy of accelerating the "informatization" of its industrial development. Subsequently, labour costs have risen and creating wealth for citizens. The industry has been a major contribution to the modernization of China and the development of new job opportunities. There are many instances of labour exploitation and subpar working conditions.
GlobalFoundries Inc. is a multinational semiconductor contract manufacturing and design company incorporated in the Cayman Islands and headquartered in Malta, New York. Created by the divestiture of the manufacturing arm of AMD, the company was privately owned by Mubadala Investment Company, a sovereign wealth fund of the United Arab Emirates, until an initial public offering (IPO) in October 2021.
India's National Policy on Electronics is formulated by the government of India to boost its electronics systems and design manufacturing industry and improve its global market share. The policy was drafted in 2011 by the Department of Information Technology of the Ministry of Communication and Information Technology. It is the first of three policies for IT, telecom and electronics released by the government.
Make in India is an initiative by the Government of India to create and encourage companies to develop, manufacture and assemble products in India and incentivize dedicated investments into manufacturing. The policy approach was to create a conducive environment for investments, develop a modern and efficient infrastructure, and open up new sectors for foreign capital.
The defence industrial sector of India is strategically important in India. India has one of the world's largest military forces with a strength of over 1.44 million active personnel. The country has the world's largest volunteer military of over 5.1 million personnel. The total budget sanctioned for the Indian military for the financial year 2021 is ₹4.78 lakh crore. It has the third largest annual defence budget behind USA and China. It is the second largest defence importer behind Saudi Arabia making up 9.2% of global arms imports. India has a domestic defence industry of which 60% is government owned. The public sector includes NTRO, CSIR, PRL, DRDO and its 50 labs, 4 defence shipyards, 12 defence public sector undertakings (PSUs). India has a new defence procurement, acquisition and manufacturing policy to reduce imports and enhance domestic manufacturing.
The semiconductor industry, including Integrated Circuit (IC) manufacturing, design, and packaging, forms a major part of Taiwan's IT industry. Due to its strong capabilities in OEM wafer manufacturing and a complete industry supply chain, Taiwan has been able to distinguish itself as a leading microchip manufacturer and dominate the global marketplace. Taiwan’s semiconductor sector accounted for US$115 billion, around 20 percent of the global semiconductor industry. In sectors such as foundry operations, Taiwanese companies account for 50 percent of the world market, with Taiwan Semiconductor Manufacturing Company (TSMC) the biggest player in the foundry market.
Dixon Technologies is an Indian electronics manufacturing services company, based in Noida. It is a contract manufacturer of televisions, washing machines, smartphones, LED bulbs, battens, downlighters and CCTV security systems for companies such as Samsung, Xiaomi, Panasonic and Philips. It has 17 manufacturing units in India. The company is listed on BSE and NSE since its initial public offering in 2017.
The Chinese semiconductor industry, including integrated circuit design and manufacturing, forms a major part of mainland China's information technology industry.
The CHIPS and Science Act is a U.S. federal statute enacted by the 117th United States Congress and signed into law by President Joe Biden on August 9, 2022. The act authorizes roughly $280 billion in new funding to boost domestic research and manufacturing of semiconductors in the United States, for which it appropriates $52.7 billion. The act includes $39 billion in subsidies for chip manufacturing on U.S. soil along with 25% investment tax credits for costs of manufacturing equipment, and $13 billion for semiconductor research and workforce training, with the dual aim of strengthening American supply chain resilience and countering China. It also invests $174 billion in the overall ecosystem of public sector research in science and technology, advancing human spaceflight, quantum computing, materials science, biotechnology, experimental physics, research security, social and ethical considerations, workforce development and diversity, equity, and inclusion efforts at NASA, NSF, DOE, EDA, and NIST.
Tata ElectronicsPvt. Ltd. also referred to as Tata Semiconductor Assembly and Test Pvt. Ltd.(TSAT) will be a India's first indigenous semiconductor assembly and test facility factory in Jagiroad. It is further poised to become a landmark industrial project in Jagiroad, situated in the Morigaon district of Assam, India.
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