Decoding India’s semiconductor shortage
The Indian government has been actively working to create a conducive environment for electronics manufacturing and Programme for Development of Semiconductor and Display Manufacturing Ecosystem in India which was introduced with a view to ensure the development of a robust and sustainable semiconductor and display ecosystem in India.
CM Naveen Patnaik addressed the inaugural ceremony of Odisha4Silicon-2023, the strategic event organised in Bhubaneswar to promote Odisha as a destination for national and global semiconductor players.
By Sanjay Singh
New Delhi, November 3– Amidst shortage of semiconductors supply which started during the Covid-19 pandemic and only intensified further is only impacting at least 169 industries including automobile manufacturing, computer chip and design and other related sectors.
Understanding the seriousness of the situation, the Union Cabinet recently chaired by Prime Minister Narendra Modi approved Memorandum of Cooperation between India and Japan on Japan-India Semiconductor Supply Chain Partnership. The Memorandum of Cooperation (MoC) was signed in July, 2023 between the Ministry of Electronics and Information Technology of the Republic of India and the Ministry of Economy, Trade and Industry of Japan on Japan-India Semiconductor Supply Chain Partnership.
The MoC intends to strengthen cooperation between India and Japan towards enhancement of semiconductor supply chain, recognizing the importance of semiconductor for the advancement of industries and digital technologies. The MoC would come into effect from the date of signature of the Parties and shall be remain in force for a period of five years.
Both G2G and B2B bilateral Cooperation on opportunities to advance resilient semiconductor supply chain and leverage complementary strengths. MoC envisages improved collaboration leading to employment opportunities in the field of IT.
The Indian government has been actively working to create a conducive environment for electronics manufacturing and Programme for Development of Semiconductor and Display Manufacturing Ecosystem in India which was introduced with a view to ensure the development of a robust and sustainable semiconductor and display ecosystem in India.
This programme aims to extend fiscal support for establishment the Semiconductor Fabs, Display Fabs, Fabs for Compound Semiconductors, Silicon Photonics, Sensors, Discrete Semiconductors and Semiconductor Assembly, Testing, Marking, and Packaging (Outsourced Semiconductor Assembly and Test (OSAT) facilities. Further, India Semiconductor Mission (ISM) has been established under Digital India Corporation (DIC) to drive India’s strategies for development of semiconductor and display manufacturing ecosystem in the country.
A Goldman Sachs report suggested that at least 169 industries had been impacted by the global chip supply shortage. The crunch has eased now but some disruptions in the supply chain still exist. Data indicates that India imports more than $2.38 billion worth (Rs 19,627 crore) of semiconductor devices from countries like China, Singapore, Hong Kong, Japan, and the United States.
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