Indian Electronics and Semiconductor manufacturing industry

[Dark Sorrow]

Chinese tend to be enamored by 'Production' only. Semiconductor industry is a lot bigger than factories churning out chips. Actually, most of innovation is not in fabrication but in design and intellectual property. India has many good design houses. These companies are called 'fabless'. Big names in this business are likes of ARM, Xilinx etc. Here are some of Indian Fabless semiconductor companies.

Not quite true. Chinese have several fabless design houses. They have even started manufacturing processors and baseband ICs (one of the most difficult to design and produce).
They are way ahead of us with this regard.

2. Infineon Technologies : Security chips, smart cards, SoC products, Wireless based on ARM uPs.

Infineon is a German Semi-Conductor giant spun off from Seimens.

 

[Indx TechStyle]

Not quite true. Chinese have several fabless design houses. They have even started manufacturing processors and baseband ICs (one of the most difficult to design and produce).

They are way ahead of us with this regard.

None of them comes in leading companies here. Nor, they utilize them much.
Mostly chips manufactured in PRC are dependent on either ToT from US or license manufacturing from British ARM.

Designing too help in earn a lot but Chinese troll designing on other forum.

Infineon is a German Semi-Conductor giant spun off from Seimens.

Thanks

 

[Cutting Edge 2]

Revised semiconductor policy on anvil
AUGUST 03, 2017 00:30 IST

With its earlier policies failing to attract electronic chip makers to invest in India, the government is now looking to rework policy to incentivise technology firms and investors to set up semiconductor wafer manufacturing units in the country.

In February 2014, the Union Cabinet had approved two proposals for setting up of semiconductor wafer fabrication units, or fabs, in the country.

While the Jaiprakash Associates-led consortium, including IBM and Israel’s Tower Semiconductor, had pulled out in March last year, things were not moving ahead for the consortium led by HSMC Technologies, according to sources. The two projects are worth more than ₹63,000 crore.

“[The] Empowered Committee has decided to meet major electronics industry associations and apex chambers to seek their views on the way forward to set up semiconductor fabs in the country,” an IT Ministry official told The Hindu.

The Union Cabinet had authorised the Empowered Committee to take all the decisions to implement fab projects.

The official added the HSMC consortium was finding it difficult to raise funds for the facility and has hence approached the government to schedule “an investors’ meet wherein Ministry officers can participate and respond to the queries of the investors”.

‘Salvaging HSMC project’
However, the official added that the HSMC project was more or less ‘scrapped’. “However, we are still trying to see if anything can be done to put the project back or track. We might hold a meeting with investors this month.” The Minister for Electronics and IT, Ravi Shankar Prasad, has instructed the IT Secretary Ajay Prakash Sawhney to work on a war footing on getting a semiconductor fab in India, it is learnt.

HSMC has not yet submitted the documents required for Demonstration of Commitment.

While the last date for submission of these documents was April 28, 2014, “several extensions were provided to both consortia as per their requests.”

Semiconductors form about 30% of the cost of all electronic products, including mobiles.

“The setting up of a Semiconductor Wafer Fabrication unit is a critical pillar required to promote Electronics System Design and Manufacturing (ESDM) in India,” the official pointed out, adding that these will also help check the import of electronic products.

As per industry estimates, the Indian ESDM market is expected to grow from $31.6 billion in 2015 to $400 billion by 2020 and consumption of semiconductors is expected to increase to approximately $55 billion in 2020.

The Jaiprakash Associates-led consortium with U.S.-headquartered IBM and Israel-based Tower Semiconductor as partners with a project cost of ₹34,399 crore was to be built at Yamuna Expressway in Uttar Pradesh. The other, led by HSMC Technologies with ST Microelectronics and Silterra Malaysia Sdn Bhd as partners and project cost of ₹29,013 crore was to come up at Prantij, Gujarat. The proposed FABs were expected to create direct employment for about 22,000 people and indirect employment for about one lakh people

According to a Niti Aayog report, contribution of electronic industry to GDP in India is only 1.7% as compared to 15.5% in Taiwan, 15.1% in South Korea and 12.7% in China.

In India, most of the OEM (Original Equipment Manufacturing) is confined to last mile assembly indicating that the industry remains in the early stages of development.

http://www.thehindu.com/business/Economy/revised-semiconductor-policy-on-anvil/article19409941.ece

​

 

[IndianHawk]

Revised semiconductor policy on anvil
AUGUST 03, 2017 00:30 IST

With its earlier policies failing to attract electronic chip makers to invest in India, the government is now looking to rework policy to incentivise technology firms and investors to set up semiconductor wafer manufacturing units in the country.

In February 2014, the Union Cabinet had approved two proposals for setting up of semiconductor wafer fabrication units, or fabs, in the country.

While the Jaiprakash Associates-led consortium, including IBM and Israel’s Tower Semiconductor, had pulled out in March last year, things were not moving ahead for the consortium led by HSMC Technologies, according to sources. The two projects are worth more than ₹63,000 crore.

“[The] Empowered Committee has decided to meet major electronics industry associations and apex chambers to seek their views on the way forward to set up semiconductor fabs in the country,” an IT Ministry official told The Hindu.

The Union Cabinet had authorised the Empowered Committee to take all the decisions to implement fab projects.

The official added the HSMC consortium was finding it difficult to raise funds for the facility and has hence approached the government to schedule “an investors’ meet wherein Ministry officers can participate and respond to the queries of the investors”.

‘Salvaging HSMC project’
However, the official added that the HSMC project was more or less ‘scrapped’. “However, we are still trying to see if anything can be done to put the project back or track. We might hold a meeting with investors this month.” The Minister for Electronics and IT, Ravi Shankar Prasad, has instructed the IT Secretary Ajay Prakash Sawhney to work on a war footing on getting a semiconductor fab in India, it is learnt.

HSMC has not yet submitted the documents required for Demonstration of Commitment.

While the last date for submission of these documents was April 28, 2014, “several extensions were provided to both consortia as per their requests.”

Semiconductors form about 30% of the cost of all electronic products, including mobiles.

“The setting up of a Semiconductor Wafer Fabrication unit is a critical pillar required to promote Electronics System Design and Manufacturing (ESDM) in India,” the official pointed out, adding that these will also help check the import of electronic products.

As per industry estimates, the Indian ESDM market is expected to grow from $31.6 billion in 2015 to $400 billion by 2020 and consumption of semiconductors is expected to increase to approximately $55 billion in 2020.

The Jaiprakash Associates-led consortium with U.S.-headquartered IBM and Israel-based Tower Semiconductor as partners with a project cost of ₹34,399 crore was to be built at Yamuna Expressway in Uttar Pradesh. The other, led by HSMC Technologies with ST Microelectronics and Silterra Malaysia Sdn Bhd as partners and project cost of ₹29,013 crore was to come up at Prantij, Gujarat. The proposed FABs were expected to create direct employment for about 22,000 people and indirect employment for about one lakh people

According to a Niti Aayog report, contribution of electronic industry to GDP in India is only 1.7% as compared to 15.5% in Taiwan, 15.1% in South Korea and 12.7% in China.

In India, most of the OEM (Original Equipment Manufacturing) is confined to last mile assembly indicating that the industry remains in the early stages of development.

http://www.thehindu.com/business/Economy/revised-semiconductor-policy-on-anvil/article19409941.ece

​

This is very crucial . Govt Should declare project of national importance just like missile development program.

Provide them all the tax breaks and they should provide land in madhya Pradesh as it will be much cheaper than Gujrat or UP.

We need chip making in India otherwise we will miss out on next gen development too.

 

[Screambowl]

We need chip making in India otherwise we will miss out on next gen development too.

India is not suitable for chip making due to environment. Had a conference long ago. The cost of chip making will go up. So the problems to tackle are how to reduce the cost of chip making in a fab.

 

[IndianHawk]

India is not suitable for chip making due to environment. Had a conference long ago. The cost of chip making will go up. So the problems to tackle are how to reduce the cost of chip making in a fab.

What kind of environment condition chip making needs?? We have all things from icy mountains to deserts to coasts to tropics.

 

[Cutting Edge 2]

This is very crucial . Govt Should declare project of national importance just like missile development program.

Provide them all the tax breaks and they should provide land in madhya Pradesh as it will be much cheaper than Gujrat or UP.

We need chip making in India otherwise we will miss out on next gen development too.

Yup, This is a much needed development. If remember correctly back in 2009 circa (maybe earlier) Intel offered India a semi feb. Unfortunately corrupt congress didn't bother with it and disappointed Intel went to China. Now almost a decade later we wonder how did China beat us in semiconductor game?

 

[Screambowl]

What kind of environment condition chip making needs?? We have all things from icy mountains to deserts to coasts to tropics.

dry and cold. Like in Russia, Taiwan, Korea.

Leh is moist and prone to sabotage

 

[ezsasa]

India is not suitable for chip making due to environment. Had a conference long ago. The cost of chip making will go up. So the problems to tackle are how to reduce the cost of chip making in a fab.

Interesting, tell us more on this......

 

[IndianHawk]

dry and cold. Like in Russia, Taiwan, Korea.

Leh is moist and prone to sabotage

Taiwan is an island . How can it be dry it has to be moist. Let is dry and cold. It doesn't have much moisture that is why it's called as cold desert.

 

[Screambowl]

Taiwan is an island . How can it be dry it has to be moist. Let is dry and cold. It doesn't have much moisture that is why it's called as cold desert.

it has subtropical climate. The air quality is very high in the region North Taiwan where the foundries are. The temp, does not go above 25 degree centigrade has less fluctuation of temperature. This is why it is suited.

When you have high fluctuation in climatic weather in a season then it becomes tough to manage the humidity as it varies with the temp. and it requires more attention and is prone lapses inside a fab.

 

[Screambowl]

Interesting, tell us more on this......

India has very high potential to establish fabless manufacturing industry. This is pure R&D sector on designs.

Most of the US and EU has fabless manuf. companies and they are outsourced to China or Taiwan.

But India should follow the Mix model. Model that is, to have pure play semiconductor foundries and also fabless semiconductor companies to have least dependence.

 

[aliyah]

man they should stop making semiconductor chips on road in cold dry weather n switch to some building with proper climate control in it

 

[SanjeevM]

Yes these days in all the IT companies, the temperature is controlled via centralized AC. If in any corner of the floor they need to increase or decrease the temperature, it can be done. So I don't think temperature is of any cause.

Intel has office in Bangalore where they design the processors. If government wants, their employees can be asked for initial consultation. I am sure, government will get clear vision.

 

[Dark Sorrow]

India is not suitable for chip making due to environment. Had a conference long ago. The cost of chip making will go up. So the problems to tackle are how to reduce the cost of chip making in a fab.

Have heard this argument long ago. It is total :bs:. Its like the grapes are sour because you can't get them. All you just need to have HVAC system and environment problems are done.
If environment was an issue then we would never have pharmaceutical sector in India.
The only reason their is no fabrication industry in India as their is no economic incentives. Why should Chinese, American and Taiwanese company move to India if they enjoy better facilities and business condition in China, Taiwan and Malaysia. Currently production capability is quite excessive then demand so there will be no major expansion.

 

[Screambowl]

The only reason their is no fabrication industry in India as their is no economic incentives. Why should Chinese, American and Taiwanese company move to India if they enjoy better facilities and business condition in China, Taiwan and Malaysia.

1) First of all neither Chinese or Taiwan or Malaysian companies design the chip, very few!!. They just produce it for the designing companies like Samsung, TI, infinion and intel.

2) There is difference between pure play foundries and integrated device manufacturing foundries.

3) We have theoretical expertise to design semiconductors/ic but lack of funds

4) They are trying to set up pure play fabrication units ( only production not designing) in India but that's not India's goal, as TOT is also demanded.

5) Bangalore was suitable for putting a production plant but with rise in air pollution they rejected it.

6) Then they moved to north but setting up a production facility is also not feasible there due to very high air pollution.

7) they are discussing to put production unit in either Uttarakhand or Himachal due to less pollution.

8) pollution, air humidity, climate plays big role to minimize the cost of production. As it is not just about production but also transportation.

 

[Dark Sorrow]

1) First of all neither Chinese or Taiwan or Malaysian companies design the chip, very few!!. They just produce it for the designing companies like Samsung, TI, infinion and intel.

Not true. Both China and Taiwan have lot of deigning companies (almost all of them are fabless. Just because we don't hear their name does not mean they do not exist. Taiwan is in semi-custom and full-custom ASICs.
Just like people outsource IT work to Indian companies people outsource VLSI to Taiwan.
Just like Taiwan China is a very powerful VLSI design hub.

2) There is difference between pure play foundries and integrated device manufacturing foundries.

I couldn't understand what you wish to convey.

3) We have theoretical expertise to design semiconductors/ic

Sir, their is a big difference in having theoretical expertise and having a practical expertise or matured proven system which we lack. We also lack a target market.

4) They are trying to set up pure play fabrication units ( only production not designing) in India but that's not India's goal, as TOT is also demanded.

That is not true. China has lot of fabless design house as well.

5) Bangalore was suitable for putting a production plant but with rise in air pollution they rejected it.

Air polluation has nothing to do with putting a fabrication plant. The fact remains neither we have expertise, money or market. In fact there are more companies in Mumbai, Pune and Ahemdabad actively working on VLSI compared to Bangalore.

6) Then they moved to north but setting up a production facility is also not feasible there due to very high air pollution.

China is suffering much more air pollution than us yet they have many more fabrication plants. This is some half baked conspiracy. Typical Indian bureaucracy giving reasons for failure.
The fact remains we have manufacturing plants of industry much more sensitive pollution (pharmaceutical, food, chemical, etc.) yet they have strong presence in India.

8) pollution, air humidity, climate plays big role to minimize the cost of production. As it is not just about production but also transportation.

Sir, it doesn't. Once the chips are manufactured they are packed in tray placed inside air tight, anti static bags with silica gel. This is an standard practice.

Most important : Modern Solid State Electronics are quite robust. They are highly resistant to environment at-least in condition humans can survive.

 

[Screambowl]

Both China and Taiwan have lot of deigning companies (almost all of them are fabless. Just because we don't hear their name does not mean they do not exist. Taiwan is in semi-custom and full-custom ASICs

I have interacted with the people working among such companies they are still trying to develop an export grade IC. Not very successful. They are used in some low grade calC or toys
Those companies emerge as startups and endup in loss or sold to some other firm. They are at very very early stage.

Taiwan is in semi-custom and full-custom ASICs.
Just like people outsource IT work to Indian companies people outsource VLSI to Taiwan.
Just like Taiwan China is a very powerful VLSI design hub.

These are known as pure play foundries which I already mentioned. They are not IDMs
Eg:TSMC is pure play fab where as IBM is integrated device manufacturing ( design and manufacture) as you said Fabless

Air polluation has nothing to do with putting a fabrication plant. The fact remains neither we have expertise, money or market. In fact there are more companies in Mumbai, Pune and Ahemdabad actively working on VLSI compared to Bangalore.

What you are talking about are IDM's/Fabless they are known as so. They are not pure play foundries.
The pure play foundries were shifted to Electronic Economic corridor which is yet to be built.
You can RTI, there is full fledge report why they were not being set in Bangalore etc, one reason is lack of clean water due to pollution. Only designing firms are there.

China is suffering much more air pollution than us yet they have many more fabrication plants. This is some half baked conspiracy. Typical Indian bureaucracy giving reasons for failure.

The area where the fabs are located have extremely low air pollution, even the TSMC pollution monitor officials in North Taiwan work towards controlling the air pollution in the city. You can check on internet.

Sir, it doesn't. Once the chips are manufactured they are packed in tray placed inside air tight, anti static bags with silica gel. This is an standard practice.

Most important : Modern Solid State Electronics are quite robust. They are highly resistant to environment at-least in condition humans can survive.

The companies don't take chance they have maintained standards..and this is why they did not put their plants they simply said NO.

You cannot tell the these rhetoric.


.

 

[Dark Sorrow]

I have interacted with the people working among such companies they are still trying to develop an export grade IC. Not very successful. They are used in some low grade calC or toys

Sir, I believe you have been misled. This are lot of Chinese and Taiwanese design houses designing state of art chips.
Chinese Example : Allwinner Technology, Actions Semiconductor, Leadcore Technology, Rockchip, Spreadtrum, Nufront, Quectel, Ingenic Semiconductor, etc.
Tiwanese Example : MediaTek, Realtek, Nuvoton, Silicon Integrated Systems, Siliconware Precision Industries, VIA Technologies, MStar, Global Unichip Corporation, etc.

Those companies emerge as startups and endup in loss or sold to some other firm. They are at very very early stage.

That is the fate of 99% of startups regardless of country.

These are known as pure play foundries which I already mentioned. They are not IDMs
Eg:TSMC is pure play fab where as IBM is integrated device manufacturing ( design and manufacture) as you said Fabless

Kindly refer my first point.

What you are talking about are IDM's/Fabless they are known as so. They are not pure play foundries.
The pure play foundries were shifted to Electronic Economic corridor which is yet to be built.
You can RTI, there is full fledge report why they were not being set in Bangalore etc, one reason is lack of clean water due to pollution. Only designing firms are there.

Do you know there are several pharmaceutical plants located in/near Bangalore. Won't they also face same problem yet they are operating (exporting) medicine.

The area where the fabs are located have extremely low air pollution, even the TSMC pollution monitor officials in North Taiwan work towards controlling the air pollution in the city. You can check on internet.

Totally incorrect statement. Kindly find our more about Tianjin and Shenzhen.
Ground reality is quite different.

The companies don't take chance they have maintained standards..and this is why they did not put their plants they simply said NO.
You cannot tell the these rhetoric.

Pollution has nothing to do with production or designing. You can always control environment, purify water.
The only reason we don't have semi-conductor industry is because we don't have a market.

 

[Screambowl]

Sir, I believe you have been misled. This are lot of Chinese and Taiwanese design houses designing state of art chips.
Chinese Example : Allwinner Technology, Actions Semiconductor, Leadcore Technology, Rockchip, Spreadtrum, Nufront, Quectel, Ingenic Semiconductor, etc.
Tiwanese Example : MediaTek, Realtek, Nuvoton, Silicon Integrated Systems, Siliconware Precision Industries, VIA Technologies, MStar, Global Unichip Corporation, etc.

They are daughter companies given very small tasks at times some are funded in small scale to satisfy domestic demand of small electronic products. I have not mislead, This is my field.

We know what they are building. They take the design on license production from big players and they duplicate it with small changes and minute changes.

Eg: Rockchip is a fabless firm designing the IC on Chip under licence from ARM on ARM architecture.

Pollution has nothing to do with production or designing. You can always control environment, purify water.
The only reason we don't have semi-conductor industry is because we don't have a market.

Market is there but companies couldn't find a place to set up a fab. It is Not possible that you have one of the largest software markets and production facility and you don't have a market for wafers.

Do you know there are several pharmaceutical plants located in/near Bangalore. Won't they also face same problem yet they are operating (exporting) medicine.

Most probably there are, but I am telling you the reasons why foreign based firms rejected to put their fabrication units. They are NOT getting a suitable place.

Totally incorrect statement. Kindly find our more about Tianjin and Shenzhen.
Ground reality is quite different.

Please explain this to those firms who rejected to put the plant based on water pollution