GS Paper 3
Syllabus: Infrastructure/Manufacturing sector
Source: The Hindu
Context: In a bid to make India’s $10 billion chip-making initiative more attractive to investors, the government approved changes to the scheme for the development of a semiconductor and display manufacturing ecosystem in the country.
What are semiconductors?
A semiconductor is a substance that has specific electrical properties that enable it to serve as a foundation for computers and other electronic devices.
Importance:
- It is the building block of almost every modern electronic device from smartphones to connected devices in the Internet of Things (IoT).
- The global semiconductor industry is currently valued at $500-$600 billion and caters to the global electronics industry currently valued at about $3 trillion.
What are Semiconductor Chips?
Semiconductors are materials which have a conductivity between conductors and insulators. They can be pure elements, silicon or germanium or compounds; gallium, arsenide or cadmium selenide.
Significance of Semiconductor Chips:
They are the basic building blocks that serve as the heart and brain of all modern electronics and information and communications technology products.
- These chips are now an integral part of contemporary automobiles, household gadgets and essential medical devices such as ECG machines.
Components of semiconductor chip: The basic component of a semiconductor chip is a sliver of silicon, which is etched with billions of microscopic transistors to control the flow of current.
- The most-advanced semiconductor technology nodes are available today are the 3 nanometre (nm) and the 5nm ones. Semiconductors having higher nanometre value are applied in automobiles, consumer electronics and so on, while those with lower values are used in devices such as smartphones and laptops.
Issues with the Semicconductor chipmaking industry:
- Shortage of chips: Due to Pandemic induced closure of factories, US-China tension in Taiwan, the Russia-Ukraine war disrupting the Supply chain, and rising demand.
- The chip-making industry is a highly-concentrated one: 90% of 5nm (nanometre) chips are mass-produced in Taiwan, by the Taiwan Semiconductor Manufacturing Company (TSMC).
So, governments all over the world are trying to create their domestic chip-making industry.
Indian Government steps:
- 2021: 10 billion dollar production-linked incentive (PLI) scheme to encourage semiconductor and display manufacturing in the country.
- Fiscal support for a design-linked initiative (DLI) scheme to drive global and domestic investment related to design software, IP rights etc.
- Modifications in “Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India:The Union Cabinet has approved a uniform incentive of 50% of the project cost for setting up semiconductor, display and compound semiconductor fabrication units.
- India Semiconductor Mission (ISM)”will be set up
- Scheme for setting up of Compound Semiconductors facilities
- Vedanta and Taiwanese chipmaker Foxconn will set up a ₹1,54,000 crore semiconductor plant in Gujarat.
What are the challenges?
- High Investments Required: one semiconductor fab requires an investment of anywhere between $3 and $7 billion
- Minimal Fiscal Support from Government.
- Lack of Fab Capacities.
- Insufficient Grants under PLI Scheme.
- Resource Inefficient Sector.
- Chip production is a resource-intensive and expensive process
- Chip-making also requires gallons of ultrapure water in a single day
Insta Links
Mains Links
Q. Given its scientific and strategic significance, India needs to be far more ambitious in creating a domestic semiconductor industry on a war footing. Discuss. (250 Words)
Prelims Links
Organic Light Emitting Diodes (OLEDs) are used to create a digital display in many devices. What are the advantages of OLED displays over Liquid Crystal displays? (2017)
- OLED displays can be fabricated on flexible plastic substrates.
- Roll-up displays embedded in clothing can be made using OLEDs.
- Transparent displays are possible using OLEDs.
Select the correct answer using the codes given below:
(a) 1 and 3 only
(b) 2 only
(c) 1, 2 and 3
(d) None of the above statements is correct
Answer: C
OLED TV is a television display technology based on the characteristics of organic light-emitting diodes (OLED). OLED TV is a different technology than LED TV. The OLED display is based on an organic substance used as the semiconductor material in light-emitting diodes (LEDs).
OLEDs are ultrathin and light, they can be fabricated on a flexible plastic or roll-up displays. Transparent displays are also possible.
In general, OLEDs are more efficient than LCDs for displaying dark images because black pixels consume little power for an emissive display, while LCDs are more efficient than OLEDs at displaying bright images.
