Indian government is going to invest $2 billion in the semiconductor laboratory
(SCL) in Mohali with focus on research and prototyping
. It is a considerable increase from the previously decided investment of $1.3 billion. The announcement was made by Union Minister Rajeev Chandrasekhar at a semiconductor design roadshow in IIT-Delhi. The minister also unveiled the government’s plan to set up the India Semiconductor Research Institute as a centre of excellence. Following a hub-and-spoke model, it will work with institutes such as IIT Delhi.
Steps like these are an indication of where the semiconductor industry in India
is headed. In a bid to become a global semiconductor manufacturing hub, such initiatives will play a key role. Let us try to understand how such endeavors will shape up the semiconductor manufacturing landscape in India.
Attracting global semiconductor manufacturers
Strengthening the semiconductor laboratories in India will signal to global semiconductor manufacturers that India is serious about becoming a hub for semiconductor manufacturing. This will lead to an increased flow of investment into the country, as companies will be more willing to establish manufacturing facilities in India, knowing that they will have access to state-of-the-art facilities, skilled labor force, and a conducive business environment.
One example of how investment into a semiconductor laboratory attracted global semiconductor manufacturers is the Taiwan Semiconductor Manufacturing Company (TSMC). In the 1980s, the Taiwanese government established an institute to promote semiconductor research and development. TSMC was established in 1987 as a joint venture between the government and private sector as a result of this initiative.
TSMC invested heavily in its semiconductor laboratory, which was equipped with the latest state-of-the-art equipment and technology. This allowed the company to offer high-quality semiconductor manufacturing services at a lower cost than its competitors. TSMC's laboratory became a hub for innovation and development, which attracted global semiconductor manufacturers to partner with them.