India to get first national security semiconductor fabrication plant as part of collaboration with US

Under a transformative collaboration with the United States, India is set to launch its inaugural national security semiconductor fabrication plant, designed to produce chips for military applications and critical telecommunications.

Aim of Project

To harness India’s growing design and manufacturing capabilities in the semiconductor sector.

Announcement

The ambitious India-US joint project was announced following talks between Prime Minister Narendra Modi and US President Joe Biden in Wilmington in the recently concluded PM visit to the USA.

Stakeholders

This initiative will be supported by the India Semiconductor Mission and involves a strategic technology partnership between Bharat Semi, 3rdiTech, and the US Space Force.

Expectations

• Sources indicate that this facility will not only mark India’s first such plant but will also be among the world’s pioneering multi-material fabs focused on national security. 
• It represents a significant step, comparable to the civil nuclear agreement, as it is the first time the US military has engaged in a partnership for high-value technologies with India.

Joint Statement from both leaders

• President Biden and Prime Minister Modi hailed a watershed arrangement to establish a new semiconductor fabrication plant focused on advanced sensing, communication, and power electronics for national security, next-generation telecommunications, and green energy applications.
• Also acknowledged efforts to build resilient and secure semiconductor supply chains, which includes GlobalFoundries’ establishment of the GF Kolkata Power Centre.
• The leaders further praised ongoing cooperation in 5G deployment and next-generation telecommunications, referencing the US Agency for International Development’s plans to invest USD 7 million to expand the Asia Open RAN Academy, aimed at workforce training initiatives in South Asia, including partnerships with Indian institutions.

Significance

• This is a different Fab in the sense that this has been established with the objective of manufacturing infrared, gallium nitride and silicon carbide semiconductors.
• It will be supported by the Indian Semiconductor Mission as well as the Strategic Technology Partnership. 
• Firstly, the increasing and very substantial design as well as manufacturing capacities that are latent in India’s semiconductor sector.

What is the India Semiconductor Mission (ISM)?

• The ISM was launched in 2021 with a total financial outlay of Rs76,000 crore under the aegis of the Ministry of Electronics and IT (MeitY).
• It is part of the comprehensive program for the development of sustainable semiconductor and display ecosystems in the country.
• The programme aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystem.

India’s New Semiconductor Projects

• Dholera Special Investment Region (DSIR) in Gujarat. Semiconductor fabrication facility. Investment: Rs 91,000 crore. 
• Morigaon, Assam. Outsourced Semiconductor Assembly and Test (OSAT) facility. 
• Sanand, Gujarat. Outsourced Semiconductor Assembly and Test (OSAT) facility.