Science & Tech

What is the technology used to manufacture a semiconductor chip?

  • The Union Cabinet has approved the establishment of three semiconductor facilities as part of an initiative to strengthen the country’s semiconductor and display manufacturing ecosystem. One is in Assam, while the other two are in Gujarat.

Need for a semiconductor hub in India:

  • Currently, only a few countries in the world produce computer chips. Due of difficulties like as the COVID-19 epidemic and geopolitical tensions between countries, it has become evident that we need several countries to produce these chips rather than relying on a single country (the Taiwan issue).
  • For example, the TATA Group, in collaboration with Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan, is constructing a chip manufacturing facility in Gujarat. 

Efforts made by the Indian Government to build Semiconductor Ecosystem:

  • The Indian government has made efforts to establish a semiconductor ecosystem through the India Semiconductor Mission (ISM). The Indian government is aggressively encouraging semiconductor sector expansion through programmes and incentives, such as the establishment of the India Semiconductor Mission (ISM) and a major funding package to stimulate semiconductor and display production.
  • Efforts to boost domestic manufacturing: India is also attempting to attract overseas investment to strengthen local manufacturing. Micron Technology’s proposed Assembly, Test, Mark, and Pack (ATMP) plant in Gujarat, with a total investment of $2.75 billion, will manufacture the first “Made in India” chip by the end of 2024.
  • International cooperation: The US Semiconductor Industry Association (SIA) and the India Electronics and Semiconductor Association (IESA) have chosen to establish a cooperation, with the US already having a ‘Chip 4’ alliance with the world’s leading semiconductor manufactures – Taiwan, Japan


India’s semiconductor ecosystem is growing, thanks to government initiatives such as the India Semiconductor Mission and collaboration with global firms. Efforts to increase domestic manufacturing and international cooperation demonstrate India’s development as a major player in the semiconductor sector.


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