Daily Current Affairs : 27-September-2024

India and the United States have recently announced a major collaboration to establish India’s first semiconductor fabrication plant focused on defense and national security. This initiative marks a significant step toward reducing India’s dependency on foreign semiconductor imports and boosting the country’s capabilities in advanced technology, especially in the defense sector.

Key Players in the Collaboration

  • Bharat Semi and 3rdiTech: These are Indian start-ups that specialize in designing chips tailored for military use. The companies were founded by entrepreneurs Vrinda Kapoor, Vinayak Dalmia, and Mukul Sarkar. Both firms have been working closely with the Indian Armed Forces and the U.S. military since 2019 to develop and supply military-grade semiconductors.
  • Partnership with U.S.: The collaboration between India and the U.S. brings together India’s growing tech industry and U.S. expertise in semiconductor manufacturing, with a focus on enhancing defense capabilities.

India’s Semiconductor Initiatives

India has been taking proactive steps to develop its semiconductor industry. Key initiatives include:

  • India Semiconductor Mission (ISM): This government program offers a 50% capital expenditure (capex) subsidy to support semiconductor manufacturing projects. This subsidy aims to make India a hub for semiconductor production by incentivizing both domestic and international companies to invest in the sector.
  • Fab Plant for National Security: One of the main goals of the new semiconductor plant is to produce chips that are crucial for national defense, such as missile seekers and night vision devices. By manufacturing these chips locally, India can reduce its reliance on foreign suppliers and ensure a steady supply of critical components for its defense forces.

Strengthening Self-Reliance

The collaboration is in line with India’s broader self-reliance goals, such as Make in India and Atmanirbhar Bharat. These initiatives aim to boost domestic manufacturing and make India less dependent on foreign imports, especially for critical technologies. The new semiconductor plant will help India strengthen its position in the global semiconductor supply chain, contributing to both economic growth and national security.

Important Points:

  • India-U.S. Collaboration: India and the U.S. are collaborating to set up India’s first semiconductor fabrication plant focused on defense and national security.
  • Firms Involved:
    • Bharat Semi and 3rdiTech: Indian start-ups specializing in designing military-specific chips.
    • Founded by Vrinda Kapoor, Vinayak Dalmia, and Mukul Sarkar.
    • They have been working with the Indian Armed Forces and U.S. military since 2019.
  • India’s Semiconductor Initiatives:
    • India Semiconductor Mission (ISM): Government initiative offering a 50% capital subsidy for semiconductor projects.
    • Fab Plant for National Security: The plant will produce defense-related chips, reducing reliance on imports for critical technologies like missile seekers and night vision devices.
  • Self-Reliance and National Security:
    • Aligns with Make in India and Atmanirbhar Bharat goals to strengthen India’s domestic manufacturing capabilities.
    • Reduces dependency on foreign suppliers for critical semiconductor components.
  • Strategic Importance: The collaboration enhances India’s role in the global semiconductor supply chain and bolsters its defense capabilities through local chip manufacturing.

Why In News

India and the U.S. have announced a collaboration to establish India’s first semiconductor fabrication plant, which will focus on producing advanced chips for defense and national security applications. This strategic partnership aims to enhance India’s technological independence while strengthening its defense capabilities by reducing reliance on foreign semiconductor imports.

MCQs about India-U.S. Partnership to Boost Semiconductor Self-Reliance

  1. What is the primary focus of the semiconductor fabrication plant being established by India and the U.S.?
    A. Commercial semiconductor manufacturing
    B. Semiconductor manufacturing for healthcare
    C. Semiconductor manufacturing for defense and national security
    D. Semiconductor manufacturing for consumer electronics
    Correct Answer: C. Semiconductor manufacturing for defense and national security
    Explanation: The collaboration between India and the U.S. aims to establish a semiconductor plant that focuses specifically on producing chips for defense and national security, such as missile seekers and night vision devices.
  2. Which Indian start-ups are involved in designing military-specific chips for the semiconductor fabrication plant?
    A. Bharat Semi and 3rdiTech
    B. TATA Semi and VITech
    C. BharatTech and 3rdSemiconductor
    D. ISEC and ArthaTech
    Correct Answer: A. Bharat Semi and 3rdiTech
    Explanation: Bharat Semi and 3rdiTech are the Indian start-ups involved in designing military-grade chips. These firms have been working with the Indian Armed Forces and the U.S. military since 2019.
  3. What is the purpose of the India Semiconductor Mission (ISM)?
    A. To import semiconductor technology from other countries
    B. To offer financial subsidies for semiconductor projects in India
    C. To promote semiconductor exports from India
    D. To develop healthcare-focused semiconductor applications
    Correct Answer: B. To offer financial subsidies for semiconductor projects in India
    Explanation: The India Semiconductor Mission (ISM) provides a 50% capital expenditure subsidy for semiconductor projects, aiming to boost domestic semiconductor production and reduce reliance on foreign imports.
  4. How does the semiconductor fabrication plant align with India’s broader initiatives like “Make in India” and “Atmanirbhar Bharat”?
    A. It focuses on foreign imports for technology needs
    B. It supports India’s goal of becoming a self-reliant and technologically advanced nation
    C. It promotes outsourcing semiconductor manufacturing to other countries
    D. It prioritizes consumer electronics production over defense
    Correct Answer: B. It supports India’s goal of becoming a self-reliant and technologically advanced nation
    Explanation: The semiconductor plant is part of India’s efforts to strengthen its self-reliance through initiatives like “Make in India” and “Atmanirbhar Bharat,” which aim to reduce dependence on foreign imports and build domestic capabilities in critical sectors like defense and technology.

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