Govt Mulls Separate Semiconductor R&D Unit With Short Project Timelines

The Centre is mulling to build a dedicated research and development unit under the proposed India Semiconductor Research Centre (ISRC).

This facility will focus on semiconductor research that can “quickly go into industrial production”, ET reported.

“There is a recognised need for both private and public sectors, particularly in the semiconductor domain, to employ dedicated R&D professionals full-time. The goal is to foster an ecosystem driven by intellectual property rights (IPR) in manufacturing. We are considering structures where R&D efforts can be co-funded or conducted in public-private partnership (PPP) mode,” the report said, citing government officials.

The proposed R&D wing will operate separately from other research activities that have long project timelines. Its focus will be on developing the next generation of semiconductors, alongside advancements in packaging, systems technologies, processes and materials.

Based on the scheme’s viability, this dedicated R&D centre could even evolve into an independent entity, the report added.

The detailed plans for the initiative are likely to be revealed after the general elections in June. 

It is pertinent to note that last year an expert panel recommended the establishment of a semiconductor research centre to MeitY (The Ministry of Electronics and Information Technology) with an initial corpus of $8 Bn (INR 66,500 Cr) over the next five years.

ISRC is aimed at developing India’s capabilities in the semiconductor research space. Modelled on the lines of global institutions such as IMEC and the MIT Micro-Electronic Labs, it focuses on semiconductor processes, advanced silicon solutions, packaging R&D, compound/ power semiconductor and chip design.

India’s semiconductor ecosystem has gained significant traction in recent times. Earlier this year, the Union Cabinet approved three semiconductor proposals from private firms, totalling INR 1.26 Lakh Cr in investment. 

Additionally, US-based semiconductor giant Micron is in the process of establishing an ATMP plant in Gujarat, with an investment exceeding INR 22,000 Cr.

India has also inked agreements with various global semiconductor manufacturing giants to set up manufacturing units domestically. Moreover, companies like Advanced Micro Devices (AMD), Micron, and Qualcomm are also investing in India.

In 2021, the government introduced Semicon India program, allocating INR 76,000 Cr to provide incentive support to companies engaged in silicon semiconductor fabs, display fabs, compound semiconductors/sensors fabs, and semiconductor packaging and design.

Subsequently, the India Semiconductor Mission (ISM) was launched in 2022 to cultivate a robust semiconductor and display ecosystem, aiming to position India as a prominent global hub for electronics manufacturing and design.

The semiconductor industry in India is projected to reach a market value of $55 Bn by 2026, driven by rising demand for smartphones, automobiles, and data storage.