Hindu Editorial Analysis : 10-November-2023

Semiconductors, those tiny building blocks powering our electronic devices, have become indispensable in our daily lives. From smartphones to IoT devices, these thumbnail-sized chips provide the computational power that drives our technology-driven world.

Components and Technology Nodes: Unraveling the Complexity
  • Basic Component: The semiconductor chip consists of a sliver of silicon, etched with billions of microscopic transistors. These transistors are strategically arranged to control the flow of current, executing various computational instructions.
  • Technology Nodes: The semiconductor technology comes in various nodes, with the 3nm and 5nm being the most advanced today. Higher nanometer values find applications in automobiles and consumer electronics, while lower values power devices like smartphones and laptops.
Challenges Hindering Progress

Underutilized Funds and Lack of Clarity:

  • Funds: Production-linked incentives (PLI) for semiconductor manufacturing are underutilized by over 80%.
  • Unclear Objectives: Experts emphasize the need for the Union government to provide clearer objectives for its semiconductor initiative, both in terms of achievements and future goals.

Import Dependency and Private Sector Hesitation:

  • Import Dependency: Despite efforts, the bulk of the capital is focused on subsidizing large manufacturing plants, with a significant reliance on imported raw materials.
  • Private Sector Hesitation: Multinational chipmakers remain hesitant due to limited scope, and private capital is uncertain about investing in the rapidly evolving field of chip technology.

Challenges in Manufacturing Ecosystem:

  • Complex Ecosystem: Developing a chip manufacturing ecosystem involves challenges such as chemical requirements, training, and ensuring clean water availability.
  • Technology Selection: Deciding whether to set up logic/processor, memory, or analog fabs poses another challenge, with each requiring a different set of advanced technologies.
China’s Dominance and India’s Opportunities
  • China’s Monopoly: Currently, China holds a staggering 75% of the $1.5 trillion electronics and semiconductor industry. This monopoly has persisted for over two decades, creating both challenges and opportunities for India to carve its niche in this critical sector.
Why In News

The Union government must be clearer on what it aims to achieve by continuing to spend crores of rupees on bringing more semiconductor fabrication capabilities to India, fostering transparency and outlining specific long-term goals to ensure accountability and success in this critical endeavor.

MCQs about Semiconductor Dilemma in India

  1. What is the primary component of a semiconductor chip?
    A. Gold
    B. Silicon
    C. Copper
    D. Aluminum
    Correct Answer: B. Silicon
    Explanation: The semiconductor chip is primarily composed of a sliver of silicon, etched with microscopic transistors.
  2. What is the current status of underutilized funds for semiconductor manufacturing incentives in India?
    A. Fully utilized
    B. Utilized by 50%
    C. Underutilized by over 80%
    D. Underutilized by 30%
    Correct Answer: C. Underutilized by over 80%
    Explanation: The funds for production-linked incentives (PLI) for semiconductor manufacturing are underutilized by more than 80%.
  3. What technology nodes are mentioned as the most advanced in semiconductor technology?
    A. 7nm and 10nm
    B. 3nm and 5nm
    C. 12nm and 15nm
    D. 8nm and 6nm
    Correct Answer: B. 3nm and 5nm
    Explanation: The most advanced semiconductor technology nodes available today are the 3 nanometre (nm) and the 5nm ones.

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