India's Unfinished Agenda: Setting Up a Semiconductor Fab



India has been striving to set up a semiconductor fabrication plant (fab) for many years, but so far, all attempts have failed. The government's 2022 Semiconductor Mission is a laudable initiative, but it is important to understand why earlier attempts failed and examine alternate approaches.

One of the main reasons for the failure of earlier attempts is that India is way behind China on the fab journey. China has invested heavily in the semiconductor industry, and now has a thriving domestic fab ecosystem. India, on the other hand, has not made the same level of investment, and as a result, does not have the necessary infrastructure or talent pool to support a fab.

Another challenge is that setting up a fab is a very capital-intensive undertaking. The cost of building a fab can run into billions of dollars, and it can take many years to recoup the investment. This makes it a risky proposition for companies, especially in a country like India where the market for semiconductors is still relatively small.

In addition, the art of chip-making is highly complex and requires a high degree of precision. This makes it difficult to set up a fab in a greenfield location, where there is no existing ecosystem.

Given these challenges, it is clear that setting up a fab in India will not be easy. However, the government's 2022 Semiconductor Mission provides a roadmap for making it happen. The mission aims to attract $100 billion in investment in the semiconductor industry over the next decade. This investment will be used to build new fabs, develop the domestic talent pool, and create an ecosystem for chip manufacturing.

The success of the 2022 Semiconductor Mission will depend on a number of factors, including the level of investment, the availability of talent, and the government's ability to create a conducive business environment. However, if the mission is successful, it will have a significant impact on the Indian economy. It will create jobs, boost exports, and make India less reliant on imports of semiconductors.

In conclusion, setting up a semiconductor fab in India is a challenging but worthwhile undertaking. The 2022 Semiconductor Mission provides a roadmap for making it happen, and if the mission is successful, it will have a significant impact on the Indian economy.

Comments

Post a Comment

Popular posts from this blog

Uniform Civil Code: A Lofty Goal, But Difficult to Achieve

Image
A uniform civil code for the entire country is a lofty goal, but it is one that has been difficult to achieve. The idea of a uniform civil code has been debated for many years, and there are strong arguments on both sides of the issue. Those who support a uniform civil code argue that it would promote equality and justice for all citizens. They point out that the current system of personal laws, which are based on religious beliefs, can lead to discrimination against women and other vulnerable groups. For example, under some personal laws, women are not allowed to inherit property or divorce their husbands. Those who oppose a uniform civil code argue that it would violate the freedom of religion. They believe that people should be free to follow their own religious beliefs, even if those beliefs lead to different rules about marriage, divorce, and inheritance. They also argue that a uniform civil code would be difficult to implement and enforce. The 22nd Law Commission of India, which
Read more

Mauritius Government Clarifies Angel Tax Rules

Image
The Mauritian government is seeking clarity on the angel tax rules that were recently introduced by the Indian government. The angel tax is a 3% tax that is levied on investments made by angel investors in startups. The Mauritian government is concerned that the angel tax could discourage angel investors from investing in startups in Mauritius. This could have a negative impact on the Mauritian startup ecosystem, which has been growing rapidly in recent years. The Mauritian government has written to the Indian government seeking clarification on the angel tax rules. The Mauritian government is hoping that the Indian government will provide exemptions for angel investments made in Mauritius. The angel tax has been criticized by many industry experts. They argue that the tax is unfair and will discourage investment in startups. The angel tax has also been criticized for being difficult to comply with. The Mauritian government is hoping that the Indian government will clarify the angel ta
Read more

India's Law Commission Calls public and religious bodies’ for Views on Uniform Civil Code

Image
The Law Commission of India has called for fresh suggestions from public and religious organizations on the Uniform Civil Code (UCC). The UCC is a proposed code that would replace the personal laws of different religious communities in India. The Law Commission has said that it is seeking views on the following aspects of the UCC: The scope of the UCC The need for a UCC The possible contents of a UCC The challenges in implementing a UCC The Law Commission has invited suggestions from the public and religious organizations by June 30, 2023. The UCC is a controversial topic in India. Some people believe that it is necessary to have a common set of laws for all citizens, regardless of their religion. Others believe that the UCC would violate the religious freedom of minority communities. The Law Commission has said that it will consider all the suggestions received before making a recommendation to the government. Background The idea of a Uniform Civil Code has been debated in India for m
Read more