Syllabus: GS2 – International relations, Gs3 – Indigenization of Technology and Developing New Technology. Changes in Industrial Policy and their Effects on Industrial Growth.
Source: The Hindu – 19/08/2023
Context
India and Japan, in July 2023, agreed to collaborate on semiconductors in a bid to create a more resilient supply chain for this critical technology and work together for the joint development of the semiconductor ecosystem.
Content
- The India-Japan partnership on semiconductors will focus on five areas: ‘semiconductor design, manufacturing, equipment research, establishing resilience in the semiconductor supply chain, and talent development’, paving the way for government to government and industry to industry collaborations.
- India’s “Make in India” initiative and Japan’s “Society 5.0” vision share the goal of technological self reliance and innovation driven growth.
Benefits of the collaboration
- Supply chain disruptions and geopolitical tensions in the IndoPacific region, have underscored the need for diversifying semiconductor supply chains and cross country collaboration.
- Joint research initiatives enable the pooling of resources and expertise to tackle complex challenges in semiconductor design, manufacturing processes, and materials science.
- This collaborative approach accelerates both innovation and the development of cutting edge solutions.
- The partnership also emphasizes human resource development through skill exchange programmes, workshops, and training.
- The India-Japan partnership is poised to play a pivotal role in shaping the global semiconductor landscape thereby addressing new challenges such as semiconductor miniaturization, AI integration,and quantum computing.
- This partnership will also have far reaching implications for the global technology ecosystem and the dimensions of geopolitical partnerships in the IndoPacific.
- This will address the geopolitical concerns over China’s expanding chipmaking capabilities.
- Japan’s advanced semiconductor industry and India’s growing information technology sector and burgeoning demand for semiconductor products across industries has laid the foundation for a mutually beneficial collaboration.
Way forward
- A collaboration between industry, educational institutions, and government is crucial for the development of a strong semiconductor manufacturing ecosystem in India .This includes targeted government action to foster investments in the semiconductor manufacturing sector.
Related topics
What is a semiconductor?
- Semiconductors are materials which have a conductivity between a conductor like copper, and an insulator, like glass.
- Examples of semiconductors: silicon ,germanium,gallium arsenide , cadmium selenide etc
- Applications of semiconductors :Used in the manufacture of various kinds of electronic devices, including diodes, transistors, and integrated circuits.
- Critical component of aerospace, automobiles, communications, clean energy, information technology and medical devices etc
Semiconductor manufacturing in India
Challenges
- lack of a robust semiconductor ecosystem
- limited availability of skilled labor
- inadequate infrastructure.
Potential
- A large domestic market, which provides a significant opportunity for semiconductor manufacturers.
Govt initiatives
- A 76,000-crore incentive package through Semicon India program aimed at developing the semiconductor and display manufacturing ecosystem in the country.
- Many policies of the Government including the flagship Production Linked Incentive (PLI) Schemes, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors, Modified Electronics Manufacturing Cluster (EMC 2.0) Scheme are major steps towards making India “Atma Nirbhar” in electronics manufacturing.
Opportunities for india
- Helps in reducing the country’s reliance on imports.
- Opportunity to become a trusted supply chain
- Decrease unemployment and underemployment
- Can become future semiconductor hub of the world