MeitY Panel Recommends Setting Up Semiconductor Research Centre At A Cost Of $8 Bn

An expert panel has recommended the Ministry of Electronics and Information Technology (MeitY) to establish a semiconductor research centre at an initial outlay of $8 Bn (INR 66,500 Cr) over the next five years. 

The suggestion is part of a report formulated by India Semiconductor R&D Committee, which was handed over to Minister of State (MoS) for Electronics and Information Technology Rajeev Chandrasekhar during an event in New Delhi on Friday (October 20).

As per new agency PTI, Chandrasekhar said the proposed institution will likely start taking shape next year and will be built as a global centre for semiconductor research. 

The report has reportedly recommended establishing a research institution with an initial investment in the range of $2.5 Bn to $3 Bn in terms of capital and infrastructure in the first three years. It has also sought an additional $250 Mn to $500 Mn in annual operating expenses during the period, which can be reassessed after a period of five years.

Addressing the gathering, the MoS said the proposed India Semiconductor Research Center (ISRC) will lead in developing India’s capabilities in the semiconductor space. Reiterating the government’s vision, the MoS said India has to become a leader in the semiconductor research space.

“A group of top minds in semiconductors around the world and country have sat together to design the Bharat Semiconductor Research Centre,” Chandrasekhar told the news agency. 

Modelled on the lines of global institutions such as IMEC and the MIT Micro-Electronic Labs, the proposed institution, as per the MoS, will focus on areas such as semiconductor processes, advanced silicon solutions, packaging R&D, compound/ power semiconductor and chip design.

The report has also called for upgradation of infrastructure at the Semi-Conductor Laboratory located in Mohali to speed up R&D in the semiconductor space.

As per the minister, the proposed institute is part of the Centre’s decadal and graded strategy to make India a global semiconductor research and innovation hub. He also said that the ISRC will have a significant impact on startups and researchers in the semiconductor space. 

Noting that the ISRC is well-poised to become a leading global semiconductor research institution in the next four to five years, Chandrasekhar said that it will foster collaboration between industry, academia, and government. 

The panel has also sought an additional annual budget of INR 320 Cr to INR 360 Cr to fund the research programme at the proposed institute.

As per the MoS, the ISRC has been envisaged with the idea of nurturing a vibrant local ecosystem, facilitating seamless ‘transfer from lab to fab’, and bridging the gap between research and manufacturing.

“The ISRC plans to invest strategically, focusing on achievable technology nodes and fostering collaborations with global research centres, academia and industry. The initiative aims to transform the centres of Excellence in India’s academic institutions into globally competitive entities, attracting global companies to India,” said an official statement. 

The global semiconductor landscape is largely dominated by a handful of companies operating out of Taiwan, South Korea and the US. This has led to an overdependence of India on a few companies for these critical components which now form the backbone of all key products from smartphones to cars. 

As a result, the union government has rolled out a red carpet for global semiconductor players to Make in India and help their Indian partners learn the ropes of the trade and leverage intellectual properties. Be it MeitY’s mega $10 Bn commitment towards the India Semiconductor Mission (ISM) or the design-linked-incentives (DLIs), the Centre has left no stone unturned to scale the local semiconductor manufacturing.

As a result, major names from Micron Technology to Foxconn have made a beeline for India and are looking to set up a base in the country. At the heart of this India pivot also seems to be the lucrative Indian semiconductor market, which is projected to grow to a market size of $55 Bn by 2026.