India aims to become a semiconductor manufacturing hub. What are the challenges faced by the semiconductor industry in India ? Mention the salient features of the India Semiconductor Mission.

Opportunities and challenges

Opportunities around semiconductor industry:-

(1) Uses in all technologies - almost all the technologies e.g. automobiles, electronics, Artificial Inteligence, computer chips etc.

(2) Could help in becoming an exporter - forex, Reduces import Bills, leveraging present opportunity - in the wake of semiconductor shortage.

(3) Can help achieve Atmanirbhar Bharat agenda:-

• Thrust to Research and development ecosystem.
• Will gain self sufficiency - a strategic element for today's world.
• Can develop Industry, supply chains and boost to employment etc.

(4) It has a potential to significantly boost our GDP and reduce trade deficit.

NITI Aayog has predicted a 100 Bn market for semiconductors by 2025.

Challenges

(1) Lack of fabrication capacity. (2) Water gushing Industry (India already is under water stress 17% people and 4% freshwater). (3) Need a steady infrastructure.

• Continued Energy Supply. (4) Capital intensive sector. Need Investments regularly. (5) Lack of skilled workforce in India. (6) Lack of private participation, due to high gestation and initial costs.

India's Semiconductor Mission could help achieve the potential of semiconductors:

India's Semiconductor Mission

• providing initial support
  • Incentives
  • Incubation
• providing for land, Infrastructure etc.
• skilled workforce by training as per Industry demand

• IPR Protection
• Collaboration with international market players
• Reduction of imports
• Better infrastructure & fiscal support etc.