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Rising Kashmir > Blog > Viewpoint > Can J&K play a Role in India’s Semiconductor Quest
Viewpoint

Can J&K play a Role in India’s Semiconductor Quest

J&K can actively participate in this endeavour by focusing on semiconductor product designs and system-level product development

DR. M J ZARABI
Last updated: June 25, 2024 10:47 pm
DR. M J ZARABI
Published: June 26, 2024
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Semiconductors: The Backbone of Modern Technology

Semiconductors, omnipresent in various applications, control an OEM market worth approximately USD 3 trillion.  We all recognise their importance in present day tech enabled lifestyle where we are layered by intelligent and smart electronics gadgets and devices that have semiconductors at the core. However, their significance extends beyond technology—they drive economies and determine countries’ relative positions in the future.

 

In 2022, the global semiconductor industry reached US$ 600 billion and is on path to exceed US$ 1 trillion by 2030. The rise of GenAI could further propel this growth achieving the US$ 1 trillion milestone earlier than expected.  We are already witness to the fact how NVIDIA has become the most valued company of the world surpassing GDP of several leading economies.  So, the role of semiconductors is only scaling up.

 

The semiconductor value chain is still very controlled and closed.  While there are reasons like it being capital intensive, availability of technology skills confined to few countries, there are also geo-political reasons that have kept it confined till now.  However, a need is being strongly felt to democratise the semiconductor manufacturing value chain and many countries including India are driving this thought.  Efforts are on through various forums like QUAD countries to see greater participation in the semiconductor value chain.  Currently, 60% of semiconductor manufacturing takes place in Taiwan where TSMC fabricates chips for all leading fabless chip companies like Qualcomm, MediaTek, etc.  South Korea follows with another 15% approximately.

 

Evolution of Semiconductor Technology

The semiconductor industry has been ever evolving and this agility in the technology has always kept it relevant ushering peculiar use cases and fostering innovations.  We have today already reached a stage where electronic gadgets and devices are compact and miniaturised as wearables on our bodies and soon heading towards possible embedding.  Broadly, we see four distinct phases that the semiconductor industry has been through.

  • Pre-Transistor Era: Early 20th-century electronics relied on bulky vacuum tubes. These gave way to semiconductor devices after the invention of the transistor in 1947.
  • Transistor Revolution: By the late 1950s, transistors became integral to electronic systems.
  • Integrated Circuits (ICs): In 1958, Jack Kilby developed the first IC (chip). Today, billions of transistors fit on a single chip due to advancements in device physics, materials, and process engineering.
  • Miniaturisation: Transistor sizes have shrunk from micrometers in the 1970s to 3 nanometers today, following Moore’s Law.

 

 

 

India’s Semiconductor Journey: Past and Present

India’s semiconductor market size was US$ 26 billion in 2022, slightly above 4% of the global market size.  This is expected to cross US$ 80 billion by 2030, doubling the global contribution to 8%.  So, while the global semiconductor industry continues to grow, the growth in India will be steeper opening up immense potential for various states and UTs to contribute and play their role by having a play in the evolving value chain.

 

Before getting into the present status of semiconductor industry in India and the possible role J&K can play, let’s enumerate the efforts made so far.

 

Early Efforts

India began manufacturing discrete semiconductors (diodes and transistors) in the 1950s and integrated circuits (ICs) in the 1970s. In 1976, the government established Semiconductor Complex Ltd (SCL) for large-scale IC production and R&D. SCL developed indigenous technologies, including CMOS processes (from 5 microns to 0.8 microns) and specialized ICs for defense and space agencies.

 

Empowered Committee (2011)

The government formed an Empowered Committee in 2011 to identify technology and investors for two wafer fabrication (Fab) facilities. Two consortia were selected but faced challenges in achieving financial closure.

 

Reconstitution and Fresh EOI (2015-2020)

In 2015, the committee was reconstituted, exploring emerging compound semiconductor technology and 28 nm silicon Fab. A fresh Expression of Interest (EOI) was floated in 2020, seeking input from prospective companies.

 

Recent Initiatives (2021-2022)

In December 2021, the government announced an improved incentive package. The India Semiconductor Mission (ISM) was launched with a budget of Rs 76,000 crores (USD 10 billion) to boost semiconductor manufacturing and design.

 

After the clarion call of ‘Make in India’ and ‘Vocal4Local’ across the hi-tech sectors like electronics, India aims to become a global hub for semiconductors, fostering self-reliance and technological advancement in this sector too.  To pursue the vision with a serious intent an India Semiconductor Mission (ISM) has been set up to have a dedicated focus on semiconductor push in the country alongside other emerging areas like AI, quantum computing, etc.

 

As a result of collective efforts of the government, industry and other organisations we are witnessing rejuvenation of the industry, and things are on track to see ‘Make in India’ chips shipping in the calendar of 2024. Some of the recent developments in the semiconductor industry in India are listed below.

 

 

 

  • Micron Technology Plant: Approved in Gujarat for memory chip assembly and testing (USD 2.75 billion investment).
  • Tata Electronics Fab: Partnership with PSMC in Dholera, Gujarat (approved in Feb 2024).
  • Tata Electronics OSAT Facility: Outsourced semiconductor assembly and test in Morigain, Assam (approved in Feb 2024).
  • CG Power Assembly Facility: Collaboration with Renesas Electronics Corp., Japan (approved in Feb 2024).
  • Sahasra Semiconductors: Rajasthan-based Company assembles NAND Flash Micro SD cards in addition to packaging their own designed LED driver.
  • Other Players: Kaynes Semiconductors, Tower Semiconductors, Zoho Corporation entering the field.
  • Upgradation of SCL: Plans for Semiconductor Complex Ltd (SCL) and a Semiconductor Research Centre.

 

These developments along with academia and startups gaining interest in the semiconductor industry should soon see India as a rising star on the global arena.

 

Jammu and Kashmir’s Role in India’s Semiconductor Journey

While awaiting the establishment of approved wafer fabrication facilities in India, there is a crucial need to accelerate efforts in designing semiconductor IPs and products. J&K can actively participate in this endeavour by focusing on semiconductor product designs and system-level product development. Entrepreneurs in J&K are encouraged to step forward and engage in this field. Additionally, they can explore the Designed Linked Initiative (DLI) scheme offered by the Indian government. Promoting designs based on India’s indigenous RISC-V-based processor, such as Shakti developed by IIT Madras, would also contribute to the country’s semiconductor ambitions.

 

The semiconductor design and IP development in J&K will not only have the participation of UT in this strategically important sector at the country level, but also kick-start transformation of the economy in the UT by creating hi-tech and new age employment opportunities, need for introduction of pertinent and industry relevant skilling and courses, and creation of technology pool, which is an essential asset of any economy nowadays.

 

J&K has had rich legacy of art and craft in which silk has been an important ingredient creating world-class masterpieces in carpets, shawls, sarees, etc.  The moment is now to have silicon alongside silk in J&K’s economy.

 

(The Author is the former Chairman-cum-Managing Director of SCL, Mohali and is currently Independent Director on the Board of Dixon Group of Companies. He has also been Chairman, Board of Governors of NIT Srinagar. He is also Patron of Jammu & Kashmir Digital Advocacy Forum (JKDAF). To connect with the author or JKDAF please visit www.jkdaf.org or mail us at [email protected])

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