Indian Electronics Manufacturing Developments : News, Updates and Discussions

jetray

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The Bloomberg report said that officials in New Delhi and Taipei have met in recent weeks to discuss a deal that would bring a chip plant worth an estimated $7.5 billion to India to supply everything from 5G devices to electric cars


For more than two decades, India has maintained the fantasy that a major semiconductor manufacturer will set up shop on its shores, kicking off the nation’s journey along an inevitable path toward chip glory. It never happened, but there’s now a very...
 

jetray

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Mar 15, 2018
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India
India’s chip dreams aren’t crazy, they’re just misguided
In the latest incarnation of the dream, officials in India and Taiwan are apparently in talks to lure a new factory

By Tim Culpan

For more than two decades, India has maintained the fantasy that a major semiconductor manufacturer will set up shop on its shores, kicking off the nation’s journey along an inevitable path toward chip glory. It never happened, but there’s now a very clear script for how it might be done, if only government and industry leaders would take a more pragmatic approach.

In the latest incarnation of the dream, officials in India and Taiwan are apparently in talks to lure a new factory worth up to $7.5 billion. The local government is likely to foot half the bill to build and kit out such a project, Bloomberg News reported.

While Taipei is eager to build closer ties with New Delhi, facilitating the construction of a chip fab in South Asia is not high on its priority list. That’s not due to Taiwan being particularly protectionist, but because it can’t see much point in the exercise given India's lack of expertise in the field.

Nevertheless, eager to continue the dialogue with an increasingly important partner, Taiwan may take the bait and start scouting for candidates.

What it’s likely to find is that the challenges facing the establishment of an Indian chip-making industry today are the same ones as the turn of the century. A reliable and stable electricity supply is the most crucial component of semiconductor manufacturing, but one which the nation struggles to provide. The process is so delicate that even the briefest blackout or power surge can trigger a halt that takes hours or days to reset. Abundant water supply, transport infrastructure, and experienced staff are among the other stumbling blocks.
Gone are the days when designing a component means actually building it.

The rise of Taiwan Semiconductor Manufacturing Co. and Qualcomm Inc. is proof of this. The latter designs the most-advanced smartphone chips in the world, using sophisticated software and the best engineers, but only a handful of its workforce would have the skillset to run a factory. TSMC, meanwhile, has stayed out of the design business and left that to clients.

Today, India has a large talent pool of chip designers, but the roster of process engineers is much shorter and certainly not long enough to run a Taiwanese front-end chip factory — where microscopic transistors are etched onto silicon.

Under Prime Minister Narendra Modi’s Make in India campaign, scores of new factories have opened or expanded across the country — many run by Taiwanese electronics giants. This trend bolstered the belief that local production is a path to selling more goods there. But it turns out that slapping a big tariff on imported smartphones is a greater incentive to build locally, with even Apple Inc.’s iPhones getting assembled on shore.

Companies like Foxconn Technology Group and Wistron Corp. ramped up in India because the nation already had an established electronics assembly business — where margins are thin and labor costs matter — and the requisite workforce was in place. Tariffs moved the economic needle enough to justify the expansion. The same cannot be said for chips. There is no local history of production, so tariffs would just drive up prices, not spur a rash of onshoring.

It’s also apparent that India’s renewed push into chips comes amid growing rivalry with China, a country that’s already committed tens of billions of dollars to become a semiconductor powerhouse. Yet New Delhi should be learning from Beijing’s mistakes and rethink its eagerness to follow suit. The world’s largest nation, and number-two economy, is mostly churning out commodity memory chips and a small amount of processors using technology that’s more than a decade old. When it comes to semiconductors, India most certainly doesn’t want to replicate China.

Instead, it hopes to be the next Taiwan. And that’s not going to happen either. In fact, it’s already failed several times before on deals worth around $5 billion apiece.

Now, for at least the third time in two decades, India is reviving dreams of being a player in the chip space as a way for the nation to move its economy up the value chain from simple labor-intensive assembly to high-tech manufacturing. One imagines TSMC being high among the targets given it’s the global leader and boasts a client list that includes Apple, Qualcomm, Nvidia Corp. and even Intel Corp. The Hsinchu-based company might politely decline, though, as it’s already expanding at home, has broken new ground in the US and is considering opening a new factory in Germany.

Smaller rival United Microelectronics Corp., however, might be curious to consider what New Delhi has to offer. Its spending budget is lower, margins thinner, and technology older, so it has a far bigger appetite to consider what sweeteners might be available. But India should also be wary of any entity that sets up solely because of the largesse that’s being doled out.

But India may be chasing the wrong types of companies. Keen to get their name in a press release alongside blue-ribbon names, generations of Indian leaders seem to have forgotten a far more suitable match: chip packaging and testing.

To the semiconductor snobs, outsourced assembly and test (OSAT) is considered the low-end part of the process compared to the high-cost lithographic steps that create the underlying component. It’s the leading-edge, multi-billion dollar factories that handle front-end wafer fabrication, while the more low-key plants test for flaws, attach wires, and then wrap them in a protective packaging. This may not sound sexy, but it’s still a highly technical and crucial aspect of manufacturing.

Fortunately for Taipei and New Delhi, the global leaders in packaging and testing are based in Taiwan. After merging with local rivals, Kaohsiung-based ASE Technology Holding Co. is number one with Hsinchu-based Powertech Technology Inc. fourth.

And ASE may be looking for an excuse to diversify further. The recent power crisis in China forced the Taiwan company to shut its Kunshan factory outside Shanghai for almost five days. Such outrages are rare, but with labor costs rising and power and pollution concerns in China escalating, the time is ripe for ASE to consider breaking ground in India.

New Delhi might think it wants a chip manufacturing facility to realize a long-held dream, but the government would be better off saving its money and luring more suitable partners in testing and assembly.
 

randomradio

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For more than two decades, India has maintained the fantasy that a major semiconductor manufacturer will set up shop on its shores, kicking off the nation’s journey along an inevitable path toward chip glory. It never happened, but there’s now a very...

The article speaks from a business perspective, but such people keep forgetting the strategic perspective.

TSMC are not duffer enough to keep their business in Taiwan when there's a very high risk of war with China. Hence the need to diversify to markets that can actually protect their business, and that's India and the US.

Everything else is minor. Power can be taken care of, always could be. We have plenty of defence and strategic infrastructure in India that run on uninterrupted supply of power. As for labour, if we do not have enough, it can be sourced globally. Labour is a temporary problem, since new industry would mean new sources of income for our labour surplus population. The water requirement is not as significant as one thinks it is. It's only a few million gallons a day for one plant.

The only reason why the chip industry has not take off in India is because our domestic market is very small for a company to invest so much money. It's pretty much the same reason why our gaming industry is so small. People simply can't afford the high end hardware needed to bring these industries to India at this time. When the PS4 first came to India, it took 2 weeks for Sony to sell the first 4500 units. Today, with the PS5, many times more are sold in mere seconds. Which indicates the market for high end goods has grown by many times. So by the time this chip factory is built and starts producing, the Indian market will be sufficiently large enough to absorb its costs. Everything else is just an excuse.
 
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RISING SUN

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Self-reliance: Govt aims to make semiconductors in India by mid-2022​

The government is aiming to lay the foundation of the country’s first semiconductor manufacturing unit by June-July next year and a request for proposal (RFP) will soon be floated seeking commercial bids from companies. The quantum of incentives will be decided after seeking feedback from the companies operating in this space, sources said.

“The semiconductor dream of India will be fulfilled soon. It’s the Prime Minister’s dream to have semiconductors designed and made in India. We are working on developing the complete semiconductor ecosystem – for designing, manufacturing and packaging semiconductor chips,” communications and IT minister Ashwini Vaishnaw told Financial Express. He, however, did not provide any details.

In December, 2020 the ministry of electronics and IT (Meity) had come out with an expression of interest (EoI) for setting up semiconductor fabs in India and 15-20 firms had evinced interest in setting up such units.

The need for having local chip manufacturing facilities is felt even today with the ongoing global chip shortage, which is hurting industries across sectors, as electronic items are needed in every segment these days.

“Semiconductors have been a key enabler in the advancement of electronics for the past 50 years and will continue to play an even greater role with the introduction of new technologies and applications, including internet of things (IoT), artificial intelligence, 5G, smart cars, smart factories, date centres, robotics etc,” Meity had said in the EoI for semiconductors floated in December.

Semiconductor manufacturing is a complex and research-intensive sector, requiring significant and sustained investments.

As the earlier plan of setting up semiconductor fabs failed, the government this time is ensuring that any incentive scheme should be able to address the requirements of the industry. As setting up semiconductor plants requires billions of dollars of investment, the government support should also match the investments.
 

Gautam

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Dixon Tech partners with Orbic to make 5G smartphone for US market

Updated: 19 Oct 2021, 10:53 AM IST
By Livemint
1634970413858.png

The new Orbic Myra 5G UW, powered by the Snapdragon® 750G 5G Mobile Platform, will be the first 5G millimeter wave product to be produced in India for export to the US

Dixon Technology has started manufacturing 5G millimetre waves smartphones which will be the first set of devices in the segment to be exported from India

Domestic electronics manufacturing firm Dixon Technologies’ wholly owned subsidiary, Padget and a US based smartphone manufacturer Orbic have entered into agreement for manufacturing of smartphones at Padget’s manufacturing facility situated at Noida.

The new Orbic Myra 5G UW, powered by the Snapdragon 750G 5G Mobile Platform, will be the first 5G millimeter wave product to be produced in India for export to the US, Dixon informed in an exchange filing on Monday.

The Orbic Myra 5G UW smartphone, which can operate in high frequency bands, is also the first smartphone that has been partly designed in India, Dixon Technologies executive chairman Sunil Vachani told news agency PTI.

Sunil Vachani- Executive Chairman of Dixon Technologies said, “We are extremely excited to partner with Orbic for manufacturing of smartphones.. This is a golden phase for India’s manufacturing industry considering it is being supported with the new Industrial friendly policies and incentives which are being rolled out by Government of India and we are proud that Dixon is a part of making India ‘Atmanirbhar’ or ‘Self-reliant’."

The 5G millimetre phone can theoretically provide speed of up to 5 gigabit per second on a phone which is over 250 times faster compared to top speed of 4G mobile connection recorded in India.

Dixon Technologies (India) Limited is the largest home grown design-focused and solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India. Their diversified product portfolio includes consumer electronics, home appliances, lighting products, mobile phones, CCTV & DVRs, Medical Equipment and wearables.

Dixon also provides solutions in reverse logistics i.e. repair and refurbishment services of LED TV panels.

Dixon Tech partners with Orbic to make 5G smartphone for US market
 
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Tatvamasi

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Be happy if it reaches half of the target.
 
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randomradio

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Be happy if it reaches half of the target.

We need Indian IP catering to the low-mid end of the smartphone business.
 
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RISING SUN

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Cabinet

Cabinet approves Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India

Incentives of INR 2,30,000 crore to position India as global hub for electronics manufacturing with semiconductors as the foundational building block

Rs.76000 crore (>10 billion USD) approved for development of semiconductors and display manufacturing ecosystem in India

Setting up of India Semiconductor Mission (ISM) to drive this sector


Posted On: 15 DEC 2021 4:00 PM by PIB Delhi​

In furtherance of the vision of Aatmanirbhar Bharat and positioning India as the global hub for Electronic System Design and Manufacturing, the Union Cabinet chaired by Hon’ble Prime Minister Shri Narendra Modi has approved the comprehensive program for the development of sustainable semiconductor and display ecosystem in the country. The program will usher in a new era in electronics manufacturing by providing a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design. This shall pave the way for India’s technological leadership in these areas of strategic importance and economic self-reliance.

Semiconductors and displays are the foundation of modern electronics driving the next phase of digital transformation under Industry 4.0. Semiconductors and display manufacturing is very complex and technology-intensive sector involving huge capital investments, high risk, long gestation and payback periods, and rapid changes in technology, which require significant and sustained investments. The program will give an impetus to semiconductor and display manufacturing by facilitating capital support and technological collaborations.

The programme aims to provide attractive incentive support to companies / consortia that are engaged in Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs, Semiconductor Packaging (ATMP / OSAT), Semiconductor Design.

Following broad incentives have been approved for the development of semiconductors and display manufacturing ecosystem in India :

1. Semiconductor Fabs and Display Fabs
: The Scheme for Setting up of Semiconductor Fabs and Display Fabs in India shall extend fiscal support of up to 50% of project cost on pari-passu (equal footing) basis to applicants who are found eligible and have the technology as well as capacity to execute such highly capital intensive and resource incentive projects. Government of India will work closely with the State Governments establish High-Tech Clusters with requisite infrastructure in terms of land, semiconductor grade water, high quality power, logistics and research ecosystem to approve applications for setting up atleast 2 greenfield Semiconductor Fabs and two Display Fabs in the country.

2. Semi-conductor Laboratory (SCL): Union Cabinet has also approved that Ministry of Electronics and Information Technology will take requisite steps for modernization and commercialization of Semi-conductor Laboratory (SCL). MeitY will explore the possibility for the Joint Venture of SCL with a commercial fab partner to modernize the brownfield fab facility.

3. Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs and Semiconductor ATMP / OSAT Units: The Scheme for Setting up of Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs and Semiconductor ATMP / OSAT facilities in India shall extend fiscal support of 30% of capital expenditure to approved units. Atleast 15 such units of Compound Semiconductors and Semiconductor Packaging are expected to be established with Government support under this scheme.

4. Semiconductor Design Companies: The Design Linked Incentive (DLI) Scheme shall extend product design linked incentive of up to 50% of eligible expenditure and product deployment linked incentive of 6% - 4% on net sales for 5 years. Support will be provided to 100 domestic companies of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design and facilitating the growth of not less than 20 such companies which can achieve turnover of more than Rs.1500 crore in the coming 5 years.

5. India Semiconductor Mission: In order to drive the long-term strategies for developing a sustainable semiconductors and display ecosystem, a specialized and independent “India Semiconductor Mission (ISM)” will be set up. The India Semiconductor Mission will be led by global experts in semiconductor and display industry. It will act as the nodal agency for efficient and smooth implementation of the schemes on Semiconductors and Display ecosystem.

Comprehensive Fiscal Support for Semiconductors and Electronics

With the approval of the programme for development of semiconductors and display manufacturing ecosystem in India with an outlay of Rs.76,000 crore (>10 billion USD), Government of India has announced incentives for every part of supply chain including electronic components, sub-assemblies, and finished goods. Incentive support to the tune of Rs.55,392 crore (7.5 billion USD) have been approved under PLI for Larges Scale Electronics Manufacturing, PLI for IT Hardware, SPECS Scheme and Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme. In addition, PLI incentives to the quantum of Rs.98,000 crore (USD 13 billion) are approved for allied sectors comprising of ACC battery, auto components, telecom & networking products, solar PV modules and white goods. In total, Government of India has committed support of Rs. 2,30,000 crore (USD 30 billion) to position India as global hub for electronics manufacturing with semiconductors as the foundational building block.

In the current geopolitical scenario, trusted sources of semiconductors and displays hold strategic importance and are key to the security of critical information infrastructure. The approved program will propel innovation and build domestic capacities to ensure the digital sovereignty of India. It will also create highly skilled employment opportunities to harness the demographic dividend of the country.

Development of semiconductor and display ecosystem will have a multiplier effect across different sectors of the economy with deeper integration to the global value chain. The program will promote higher domestic value addition in electronics manufacturing and will contribute significantly to achieving a USD 1 Trillion digital economy and a USD 5 Trillion GDP by 2025.