In the recent Union Budget 2024, the central government increased the estimate for setting up semiconductor fabs in India from INR 12.51 crore to INR 1,500 crore. This is in addition to the INR 6,903 crore earmarked for semiconductor and display manufacturing. 

The commitment has paved the way for India to achieve its dream of becoming the semiconductor capital of the world, and a possible way for us to catch up is by accelerating manufacturing. A potential solution could also be the implementation of digital twins. 

Why Digital Twin in Manufacturing? 

“Extended to vast scales, a digital twin is a virtual world that’s connected to the physical world,” said NVIDIA chief Jensen Huang. 

Digital twins act as virtual replicas of the physical systems, thereby providing a platform that helps train systems before the actual production. In the process, digital twins assist in reducing costs, time, and effort that would be needed to optimise production workflows. 

Last year, at a tech summit in Bengaluru, Microsoft showcased what an assembly line or a manufacturing plant would look like with HoloLens. In the process, it painted a picture of how the digital world will help scale manufacturing. 

India currently has one existing semiconductor facility (Micron in Sanand) and three newly approved facilities at Dholera in Gujarat, Morigaon in Assam, and another one in Sanand, Gujarat. While plans are in place, full-fledged manufacturing will take time to come to fruition. This is something, which can probably be expedited with digital twins. 

While India looks to find its way, companies such as Intel and NVIDIA, are going big on creating digital twin setups for semiconductor and other industries. 

Big Tech and Digital Twin 

Samsung is set to launch an NVIDIA Omniverse-based Fab Digital Twin for simulating fab architecture and semiconductor manufacturing, potentially the first to achieve smart factory Level 5. The platform will pilot next year, showcasing various use cases in planning and simulation.

Furthermore, NVIDIA’s Aerial Omniverse Digital Twin for 6G will be able to create accurate simulations for 6G systems, proving to be a crucial factor for AI integration testing. 

Interestingly, Intel is not far behind, as the company signed an MoU with Siemens last year to collaborate on the digitalisation of its wafer fabs using digital twin technology. 

Recently, the US government invested $285 million to enhance digital twin technology in semiconductor manufacturing. This funding aims to advance the development and application of these virtual models in the industry. 

India, The Favoured Capital

While the logistics and workaround for setting up fab units are ongoing, the country is already a favoured destination for the chip industry. US-headquartered chip company SiMa AI has chosen India as its strategic market despite China being the largest semiconductor market in the world. 

In December 2021, the Indian government launched the India Semiconductor Mission that announced an INR 76,000-crore chip incentive scheme that offers a 50% subsidy on expenditure for plant development. 

Meanwhile, Tesla is said to have partnered with Tata Electronics to buy semiconductor chips for its global operations. 

With the burgeoning pace at which the semiconductor industry is developing in India, it won’t be long before India could possibly emerge as the semiconductor capital of the world. 

Digital Twins for the World 

While semiconductor companies have found ways to expedite manufacturing processes with digital twins, the concept is being heavily implemented across other sectors too. For instance, space tech, which involves exorbitant cost, resources and most importantly, time, is already solving these with digital twins. 

Recently, Declan Ganley, the founder and CEO of Rivada Space, told AIM how tasks that took 50 days five years ago can now be accomplished in a day with digital twins in satellite technology. 

Fujitsu, which is already in the semiconductor market, is working on creating digital twins for other verticals. They are in the process of developing ‘Ocean Digital Twin’ using AI and underwater drone data. 

The company is looking to promote marine conservation, carbon neutrality and biodiversity through this digital twin. It is also working with Carnegie Mellon University to develop AI-powered digital twin technology with traffic data from Pittsburgh. 

It is clear that robotics, especially autonomous vehicles, has one of the largest use cases for digital twins and simulated reality in their training, and in bring AI to the physical world.

The post How Digital Twin Can Accelerate India’s Semiconductor Ambitions  appeared first on AIM.

With the Lok Sabha elections looming on the horizon, Prime Minister Narendra Modi has expressed confidence in his return for a third consecutive term. Whether that becomes a reality or not, remains to be seen but regardless, Modi’s legacy in the past 10 years has been a subject of extensive debate.

While Jawaharlal Nehru is credited for India’s democratic and secular values, Narasimha Rao for spearheading the economic reforms of 1991, and Atal Bihari Vajpayee for establishing India as a nuclear power, many would argue that Modi would be remembered for the Ayodhya Ram Temple. 

However, his real contribution towards the nation could be ushering the country into the era of semiconductor manufacturing. On February 29, the government approved the first semiconductor fabrication unit to be established on Indian soil.

India’s past endeavour with semiconductor 

This marks a historic day for India because the quest to fabricate semiconductors in the country is more than half-a-century old. 

In the 1960s, Fairchild Semiconductors, a prominent semiconductor company of that era, expressed interest in establishing operations in India. However, bureaucratic hurdles and various challenges ultimately compelled them to relocate to Malaysia.

Subsequently, multiple administrations have endeavoured to initiate semiconductor manufacturing in India. Regrettably, none of those yielded positive results until the present moment.

More recently, the Congress government under Manmohan Singh, had also tried to lure chip manufacturers in the country. In 2007, the Singh-led administration released the semiconductor policy with the objective of attracting INR 24,000 crores worth of investments. 

Back then, Singh famously said that it is essential to develop semiconductor fabrication capabilities to support the information and communication technology sector in the country. 

The government engaged in discussions with major players such as Intel and AMD, with the latter entering into a licensing agreement with SemiIndia, a consortium of technology firms based in Hyderabad. 

Nevertheless, none of these discussions yielded tangible outcomes due to bureaucratic hurdles, unfavourable business conditions for foreign companies, and the lack of government support.

Interestingly, then Intel chairman Craig Barrett said that the Indian government was a bit slow in coming out with its semiconductor manufacturing proposal and “missed the window of our period of time that we had to commit our next tranches of manufacturing capacity. That is a fact. That is the story”.

Modi’s Semiconductor Legacy 

During his second term, Modi and his ministers significantly pushed to remove the bottlenecks, established the Semiconductor India Mission (ISM) and announced USD 5 billion in incentives for those setting up fabrication units in the country.

In 2022, Modi approved three proposals, most notably the Foxconn-Vedanta joint venture (JV), yet neither of these materialised. However, as things stand, the semiconductor plant in Dholera set by Tata Electronics in partnership with PSMC, could tape out its first chips by 2026. 

Given the repeated failures of his predecessors, managing to bring chip manufacturing companies into the country would without doubt be one of Modi’s biggest achievements in his long stint as the Prime Minister of India. 

Notably, Micron has already announced investments worth USD 2.75 billion to set up an assembly and test facility in Gujarat. 

Moreover, along with the Tata-PSMC plant, the government also approved the CG Power-Renesas outsourced assembly and test (OSAT) facility at Sanand, Gujarat, and the Tata OSAT unit at Morigaon, Assam.

Semiconductor chips power almost all electronic gadgets in the world from computers, smartphones, cars, aeroplanes to military devices. However, only a few countries today have the capability to fabricate these chips. 

“Imagine if all advanced strategic (space, defence, and what can affect human lives) technologies are dependent on these chips, and if the countries supplying chips to us suddenly stopped exports to India, what would we do?,” Mayank Shrivastava, a professor at the Indian Institute of Science, had told AIM earlier.

Hence India’s pursuit of semiconductor manufacturing is driven by a strategic imperative to enhance its national security, bolster its economy and foster technological self-reliance.

Semicon industry to kick off in Modi’s 3rd term?

The semiconductor ecosystem could really kick-off during Modi’s potential third term, if he gets re-elected. The government is poised to unveil new fab initiatives, and there are reports indicating that Tower Semiconductor could be next, as the Israeli chip company is actively seeking an investment partner to establish a fabrication unit in India.

According to Union Minister Ashwini Vaishnaw, chips manufactured or packaged in India will not only cater to domestic demand but also address the requirements of foreign countries.

Moreover, chips fabricated in India will also give India’s manufacturing ambitions a significant boost. Over the years, along with semiconductors, the Modi administration has also heavily emphasised the importance of manufacturing electronics locally – be it smartphone components or flatscreen televisions. 

India is far away from locally producing the 5 nm or 3 nm nodes chips currently powering some of the most advanced smartphones or laptops. However, the Tata-PSMC fabrication unit will be capable of manufacturing chips at 28nm, 40nm, 55nm, and 110nm nodes, which are used for power management, display drivers, and microcontrollers, among other things. 

Achieving the fabrication of 28 nm or 40 nm chips domestically in India would mark a significant milestone. Subsequently, progress towards more advanced nodes like 5 nm or even 3 nm could be pursued over time. 

Moreover, under Modi’s leadership, efforts are also being made to modernise the already existing Semiconductor Lab (SCL) in Mohali. 

Whether this vision materialises or not is uncertain, but Modi’s initiative to kickstart this endeavour could be remembered by future generations for establishing India’s presence in the semiconductor industry.

The post Semiconductors Could Be Narendra Modi’s Legacy  appeared first on AIM.

In 2022, Ceremorphic, a semiconductor fabless startup based in San Jose, emerged from stealth mode to reveal a 5 nm supercomputing chip produced by Taiwan Semiconductor Manufacturing Company (TSMC).

Almost a year later, founder Venkat Mattela announced the company’s venture into the life science industry, particularly the drug discovery space, with the introduction of an analogue computing solution. He believed his AI chips could provide a better and energy-efficient alternative to pharmaceutical companies involved in drug discovery. 

However, Mattela is now confident that his company can offer pharma companies more than just power efficiency. He asserts that his technology has the potential to streamline drug discovery processes, leading to a significant cost reduction of nearly 100 times.

“Last year, only 34 drugs were approved by the US Food and Drug Administration (FDA), which is significantly low given the number of drug discovery companies and the billions of dollars spent,” Mattela said.

While he has made bold claims since the company came out of stealth, in a recent interaction with AIM, Mattela also revealed that the startup’s chips, designed specifically for the life science industry, will enter production by 2024. He also revealed that the company is involved in the design of a 3 nm chip. 

Developing chip for life science 

While the 5 nm chip is expected to enter production in 2026, Mattela added that most of the work done by Ceremorphic in developing the 5 nm chip has been useful in developing the chip designed for life science. 

The company has also pinpointed additional sectors where its technology can be applied, including but not limited to automobiles, data centres, and robotics.

“In any vertical application, approximately 80% of the functionalities remain consistent, however, the remaining 20%, as seen in specialised fields such as drug discovery, demands distinct considerations, perhaps involving specific techniques or methodologies. 

“Hence, when stating that we are developing a separate chip for life sciences, it implies that the fundamental 80% remains analogous to other chips, while the differentiating 20% caters to the specific nuances of life sciences applications,” Mattela said.

More than a data centre in a box

When Ceremorphic decided to foray into life sciences in 2022, its initial focus was to sell its AI chips to pharmaceutical companies, which are more energy efficient, according to the company, compared to using a hyperscaler’s service like Microsoft Azure, Google Cloud or AWS.

“I realised that drug discovery companies spend billions of dollars for five to six years to reach Phase 2, which is human trials, however, shockingly, 90% of the time they don’t reach Phase 2,” Mattela said.

So, what Ceremorphic has developed is BioComp DiscoverX,  a supercomputing platform which leverages proprietary analogue, quantum, and AI technology to accelerate drug development.

“It is a system designed for scientists involved in drug development, aimed at increasing the likelihood of selecting a drug that progresses successfully through various stages, from initial development to advanced phases,” Mattela said.

Besides reducing the drug development cost by almost 100 times, he believes that his technology has the potential to eventually eliminate the need for clinical trials on animals. However, he emphasises that achieving this goal requires significant progress and effort.

Mattela mentioned that he will be visiting Japan soon to engage with a potential partner in drug discovery. His proposition is pretty direct: “I understand your current workload constraints; hence assign me the project that you consider the most challenging, and compensate me only when I have delivered the results.”

Building in India 

Despite being a US company, Ceremorhic’s core team is based in Hyderabad. “We have a team of over 150 in Hyderabad, where my core engineering team is. Everything from research and development happens here,” Mattela said.

Although the chips will be manufactured by TSMC, Mattela states that the company envisions constructing the remaining components necessary for the solution in India.

The post Ceremorphic’s AI Chips for Life Science to Enter Production in 2024 appeared first on AIM.

Since its inception in 2015, Telangana government-led T-Hub has incubated over 1,600 startups. Based on the triple helix model of innovation, the intermediary offers various programmes and initiatives to support startups, corporations, and other stakeholders in the innovation ecosystem. 

“Cumulatively, they have raised close to about $1.9 billion in funding and created 25,000 plus jobs over the past eight years,” Mahankali Srinivas Rao (MSR), chief executive officer at T-Hub, told AIM.

So far, T-Hub has delivered over 100 innovation programmes, including incubation, and has helped startups access better technology, talent, mentors, customers, corporates, investors, and government agencies.

Over the years, T-Hub has evolved into a crucial component of Hyderabad’s startup and innovation ecosystem. Its success has been so impactful that other states are exploring the adoption of a similar model to replicate the achievements of T-Hub.

It has supported and propelled startups in various sectors, including deeptech, mobility, aerospace and defence, healthcare and medtech, fintech, digital commerce, and manufacturing, among others. Notably, it has also established the world’s largest startup incubation centre, covering an extensive area of 582,689 square feet.

Nurturing AI Startups

T-Hub has also launched various programmes and initiatives to fuel AI innovation in the state and nurture startups building AI tools and models.

With the Lab32 programme, launched in partnership with Hexagon, a Sweden-based tech company, T-Hub is helping AI startups get mentorship in go-to-market (GTM) strategies, support from value partners, and an opportunity to go-to-market with Hexagon.

As part of its incubation programme, T-Hub is helping several generative AI startups that are actively building Large Language Models (LLMs).

The startups selected are those building real-time language translation tools and enabling prescriptive maintenance with AI/ML models for process plants. As part of the second cohort, 12 startups were selected out of 230 that applied for the 100-day programme that will focus on digital twin, real-time language translation and predictive maintenance using an AI model. 

“We’ve established programmes that pair participants with experienced mentors, strengthening their connections to investors. Additionally, we assist them in securing opportunities to present their ideas to prominent clients,” MSR told AIM. 

Moreover, the Department of Science and Technology (DST) has established an ML and AI Technology Hub (MATH), an initiative designed to amplify the impact of AI/ML startups and explore opportunities for their elevation. According to MSR, an official announcement about the CoE will be made soon. 

The initiative aims to empower over 150 startups annually and generate over 500 AI-related jobs by 2025. T-Hub also connects startups with mentors (AI experts) to provide them with the necessary knowledge, skills, and tools to leverage AI effectively.

Startups Building LLMs

Currently, T-Hub is incubating a startup named MeghaAI, which has engineered a multi-modal LLM tailored for the upstream oil and gas sector. Named ‘MachineGPT’, this model surpasses the constraints of static dashboards by providing a dynamic and intelligent natural language interface.

The platform doesn’t just present data; it engages in a meaningful conversation with your data, uncovering hidden patterns, detecting potential issues, and suggesting actionable solutions.

“Similarly, another Hyderabad-based startup, Genz Technologies, is developing enterprise-focused LLMs,” MSR pointed out. 

Genz has developed eLLMo, which significantly reduces the information retrieval time from a few hours to a few seconds, thus saving many productive hours across the organisation resulting in increased efficiency and productivity.

Automatr is another startup that has developed an enterprise-focussed model called Document LLM, which helps in extracting data from unstructured documents.

Nurturing Semiconductor Startups 

Besides AI, another field where India is trying to grow significantly is semiconductors.  “Whenever you think of semiconductors, you think of fabrication units, but there is more to it. There is designing involved and also Outsourced Semiconductor Assembly and Test (OSAT) units. We have about close to 20 startups in this space,” MSR said.

One of the startups highlighted by MSR is PowerICs, which is developing GAN chargers and plans to set up a manufacturing facility in India and start production by 2025. Moreover, he also pointed out ASIP Technologies, which recently came out of stealth to announce its ATMP/OSAT project in partnership with Korea’s APACT Limited.

ASIP also signed an MoU with IIT Hyderabad to take up joint R&D in next-generation packages, develop and qualify new packaging materials and develop a skilled workforce for the OSAT industry.

The post How T-Hub is Scripting AI and Semiconductor Startup Success Stories appeared first on AIM.

HCLTech and Intel Foundry have announced their decision to expand their collaboration to co-develop silicon solutions to improve semiconductor innovation globally. This partnership will leverage HCLTech’s design expertise and Intel Foundry’s advanced technology and manufacturing capabilities. 

The goal is to establish a resilient and diversified supply chain to meet the rising global demand for semiconductor manufacturing. This collaboration will offer semiconductor manufacturers, system OEMs, and cloud services providers a robust ecosystem for semiconductor sourcing. Additionally, the collaboration has the potential to spur innovation by enabling the design of customised silicon solutions tailored to specific use cases.

“Intel Foundry’s advanced technologies and silicon-verified IPs in manufacturing and advanced packaging strengthens our delivery of innovative, accessible and diverse solutions to our mutual clients. This will also give them greater choice and flexibility in semiconductor sourcing,” said Vijay Guntur, President, Engineering and R&D Services, HCLTech.D

HCLTech has been collaborating with Intel for over 30 years, a relationship that has evolved through shared offerings and joint investments in various sectors, including silicon services, hardware engineering, telecom services, and more. The current focus is on jointly designing highly customised silicon solutions for companies, combining HCLTech’s design expertise with Intel’s manufacturing capabilities.

This expanded collaboration is set to further strengthen their partnership by fostering a strong and open ecosystem beneficial for clients requiring advanced silicon solutions.

Intel also announced that it has signed Microsoft as a foundry customer for a custom chip. This deal is part of Intel’s plan to overtake TSMC using its Intel 18A and upcoming 14A manufacturing technologies. The 18A, a 1.8nm technology, is set for early 2025 and will be used for future CPUs in both consumer and data centre markets. The 14A, planned for late 2026, will introduce a more advanced lithography tool for smaller and more efficient chips. 

Together with its collaboration with HCLTech to develop customised silicon solutions, Intel aims to meet the growing demand for semiconductors. 

The post Intel Collaborates with HCLTech to Advance Semiconductor Manufacturing appeared first on AIM.

A report commissioned by the Semiconductor Industry Association (SIA) and the India Electronics and Semiconductor Association (IESA) recommends advanced US-India cooperation on semiconductors through a partnership under the CHIPS for America International Technology Security and Innovation Fund (ITSI) to strengthen India’s semiconductor competitiveness.

The report, titled “Assessing India’s Readiness to Assume a Greater Role in Global Semiconductor Value Chains,” evaluates India’s existing semiconductor ecosystem and policy frameworks and offers recommendations to facilitate longer-term strategic development of complementary semiconductor ecosystems in the U.S. and India.

The report, which was authored by the Information Technology and Innovation Foundation (ITIF), also recommends creating a pilot visa programme to facilitate the circulation of skilled workers between the US and India, as a potential deliverable of the initiative on Critical and Emerging Technology (iCET).

It further suggests advanced policy reforms to lower the cost of doing business for semiconductor companies in India, including offering tax breaks to chip companies, reducing customs administration burdens, and expediting clearance times for goods entering the country.

Other suggestions include establishing cross-sector partnerships with higher-education institutions to grow India’s semiconductor-ready workforce and facilitating robust and ongoing consultation with semiconductor industry stakeholders.

“Given its rapidly expanding domestic market, a well-developed design ecosystem, supportive government policies, and concerted industry collaboration to tap global markets, the present juncture presents a unique opportunity for the establishment of semiconductor manufacturing in India. The report underscores India’s tremendous progress towards becoming a prime destination for electronics and semiconductor manufacturing, capitalising on its robust semiconductor design ecosystem,” said Ashok Chandak, president of IESA.

The post Industry Bodies Recommend Advanced US-India Cooperation To Strengthen Semiconductor Competitiveness appeared first on AIM.

Samsung Semiconductor India Research (SSIR) has inaugurated its ‘Samsung Innovation Campus’ programme at the Visvesvaraya Technological University (VTU) to upskill youth in future tech domains such as AI and Internet of Things (IoT) and make them job-ready.

Under the programme, Samsung Semiconductor India Research (SSIR) will train and empower 1,100 undergraduate engineering students across the state of Karnataka.

Beyond technical competency development, students will be guided through the entire ideation process, problem-solving methodologies, and mentored by experts to solve identified problem statements while participating in the state-level hackathons. Notably, standout ideas with potential for Deep Tech products shall foster entrepreneurship among tomorrow’s innovators.

A Memorandum of Understanding (MoU) was signed by Dr. BE. Rangaswamy, Registrar of VTU in the presence of Dr. S Vidyashankar, honourable Vice Chancellor of VTU, and other dignitaries from SSIR. The pilot project between SSIR and VTU is an effort to equip students with knowledge and skills of cutting-edge technologies, contributing to the growth of the technology ecosystem in Karnataka.

“The objective of launching Samsung Innovation Campus is to empower young minds and foster innovative thinking in them. Our partnership with VTU is a stepping stone towards creating an innovation centre that brings out the potential of the youth. This collaboration will not only enhance the technical
capabilities of young students but will also make them industry-ready. We are optimistic that through the programme, SSIR will foster innovation and instil an entrepreneurial mindset amongst aspiring engineers,” said Balajee Sowrirajan, corporate EVP & MD, Samsung Semiconductor India Research.

SSIR is a part of the global network of Samsung Electronics Co., Ltd. for providing component solutions, featuring industry-leading technologies in the areas of System LSI, Memory and Foundry.

The post Samsung Semiconductor India Research to Train Youth in Karnataka in AI and IoT appeared first on AIM.

Electronics manufacturing company Kaynes Technology was set to invest INR3,750 crore to build an outsourced assembly and testing (OSAT) facility in Mysuru, Karnataka, creating 3,200 jobs. However, within a few months, Kaynes shifted location to Telangana and will build the OSAT facility at a relatively lower cost of INR 2800 crore.

The Karnataka government was bombarded with criticism for letting Kaynes slip away from its hands to a neighbouring state. At the same time, the Telangana government was praised for convincing the homegrown electronics manufacturers to shift base.

This incident underscores the fact that Indian states are currently engaged in a competition to draw leading semiconductor companies to their respective regions. Setting up a fabrication unit brings numerous economic benefits — it can spur local employment opportunities and bring economic growth for the region. It also leads to enhanced export potential and the stimulation of allied industries, contributing to overall economic development.

State governments are enticing semiconductor companies with propositions like providing electricity and water, two important resources to run a fabrication unit, at subsidised rates. Numerous states are even offering additional incentives on top of those already declared by the central government.

States like Gujarat, Karnataka, Tamil Nadu, Odisha, and Assam have come up with their semiconductor policies. For instance, in July 2023, the state government of Gujarat unveiled a dedicated policy which includes incentives and subsidies to encourage semiconductor production within the state.

Gujarat is building a Semiconductor city

Gujarat is in the process of creating a ‘Semicon city’ in Dholera. Encompassing approximately 10,000 acres within the Dholera Special Investment Region (SIR), the development of the Dholera Smart City is anticipated to play a pivotal role in positioning Gujarat as a national hub for semiconductor industries.

The government is trying to attract not just fabrication companies, but also display fabrication units, silicon photonics, and semiconductor assembly, testing and packaging facilities to the state.

Bhupendrabhai Patel’s government also plans a 75% subsidy on the purchase of the first 200 acre land and an additional 50% capital subsidy to companies deciding to set up camp in the state as per the Gujarat Semiconductor Policy 2022-27.

The semiconductor projects will be supplied water at Rs. 12 per cubic metre for the initial five years, with a subsequent annual increment of 10% for the following five years. Moreover, the production unit qualifies for a Rs. 2 per unit power tariff subsidy for the initial ten years. Additionally, it will be exempted from paying electricity duty under the provisions of the Gujarat Electricity Duty Act, 1958.

So far, US-based semiconductor company Micron Technology has announced its plan to set up an outsourced semiconductor assembly and testing (OSAT) plant at Sanand in Gujarat. However, Gujarat is not the only state competing to attract semiconductor companies.

Moreover, at the 10th Vibrant Gujarat Global Summit, Tata Sons Chairman N Chandrasekaran revealed that Tata Group will build a semiconductor factory at Dholera.

Karnataka banking on the existing semiconductor R&D hub

Giving tough competition to Gujarat, Karnataka too, has identified 4 semiconductor clusters within the state. Interestingly, Karnataka was the first state to draft a semiconductor policy in 2010. In 2017, the state launched the Karnataka Electronics System Design & Manufacturing (EDSM)Policy 2017-2022.

State IT minister Priyank Kharge has revealed that his government is already talking to a few companies. Moreover, the minister even said that his government is even willing to tweak incentive and labour policies to attract major players along with their supply chains.

Karnataka would also bank upon the fact that many semiconductor companies already have their Research and Development (R&D) units in the state. Last year, AMD, an American multinational semiconductor company based in Santa Clara, California, announced its largest design centre in Bengaluru.

Other companies such as Analog Devices, NXP Semiconductors, NVIDIA and Intel, among others have established their R&D centre in Karnataka. Interestingly, Texas Instruments has had a presence in Bengaluru since 1985.

“We already have a fabless ecosystem and are slowly metamorphosing into a fab ecosystem. A lot of people are talking to us. Earlier, the talks were more speculative, and now there is a sense of urgency,” Kharge said in an interview.

Previously, ISMC, a joint venture between Abu Dhabi-based Next Orbit Ventures and Israel’s Tower Semiconductor, proposed a 65-nanometer analog semiconductor fabrication unit in Mysuru’s Kochanahalli Industrial area.

Now, reports suggest Krypton Solutions could invest INR 832 crore (USD 100 million) to set up a Printed Circuit Board (PCB) fabrication unit in Karnataka. Foxconn, along with Telangana and Tamil Nadu, are also considering the state to set up an OSAT unit in partnership with HCL.

Other states are catching up

Other states in Southern India, such as Tamil Nadu and Telangana, are also trying to lure semiconductor companies. At the Global Investors Meet (GIM), the Tamil Nadu government unveiled its ‘Semiconductor and Advanced Electronics Policy 2024’.

With the policy, the TN government aims to foster a semiconductor design ecosystem by offering incentives and financial support and promoting collaboration between the industry and academia. Companies selected under the India Semiconductor Mission (ISM) will receive an additional 50% financial incentive from the TN government.

Moreover, the youngest Indian state, Telangana, is also trying to attract semiconductor companies. Kaynes Technology has already started work on its OSAT facility in Kongara Kalan near Hyderabad.

Other states like Maharashtra, Odisha and Assam are also trying to woo semiconductor companies. The Eknath Shinde-led Shiv Sena-BJP government in Maharashtra offered INR 39,000 crore incentives to Vedanta-Foxconn JV, which chose Gujarat, before disbanding.

Assam, which has tabled a semiconductor policy, has managed to attract the Tata Group to set up an INR 40,000 crore semiconductor processing plant.

In Odisha, RIR Power Electronics Ltd, a global semiconductor company, plans to invest INR 510 crore to set up a fabrication and packaging facility for SiC devices at Info Valley, Khurda.

The post Indian States Vie with Each Other to Win Semiconductor Deal appeared first on AIM.

NVIDIA Chief, Jensen Huang, made a low-key visit to Beijing to attend the company’s 2024 Beijing New Year Party. Rarely seen without his signature black leather jacket, Huang’s appearance in a traditional floral print red vest, caused quite a stir. To add to the surprise, he also performed for his NVIDIA employees at the event. 

Fun and Work in China

The visit marks Huang’s entry into China after four years. It was also reported that Huang visited offices in Beijing, Shanghai and Shenzhen in a lowkey manner this week. 

These developments come at a time when the US and China are dealing with geopolitical issues. The US had banned export of AI chips to China including NVIDIA’s A800 and H800 chips. To further add to the tension, the US is also preparing to restrict Chinese companies from accessing US’s cloud-computing service- a move that has been brewing since last year. 

However, the Chinese military entities, state-run AI research institutes and universities have procured limited quantities of NVIDIA semiconductors in spite of the ban. 

Huang’s choice of a red vest is poles apart from his black biker jacket which he considers to be a convenient and functional choice of wear amidst its hectic routine. However, his visit to China, embracing his fun side to enjoy the Chinese facilities is strategically planned. 

The post Jensen Huang Sheds Black Jacket for Red Floral Vest appeared first on AIM.

Indian IT giant Infosys announced its definitive agreement to acquire InSemi for ₹280 crore, a prominent semiconductor design and embedded services provider. The company  said it aims to accelerate its Chip-to-Cloud strategy through this collaboration, leveraging InSemi’s niche design skills at scale. 

The company in its statement  said this move aligns seamlessly with Infosys’ existing investments in AI/Automation platforms and industry partnerships, facilitating comprehensive end-to-end product development for clients.

“With the advent of AI, Smart devices, 5G and beyond, electric vehicles, the demand for next-generation semiconductor design services integrated with our embedded systems creates unique differentiators. InSemi is a strategic investment as we usher a next wave of growth and a leadership position in Engineering R&D.” said Dinesh R, EVP & Co-Delivery Head, Infosys.

Founded in 2013, InSemi provides end-to-end semiconductor design services, covering electronic design, platform design, automation, embedded, and software technologies. With a team of over 900+ design specialists, InSemi serves leading global corporations across semiconductor, consumer electronics, automotive, and hi-tech industries. The acquisition is set to strengthen Infosys’ Engineering R&D capabilities and position the company as a leader in this domain.

“With Infosys as our catalyst, it creates a synergistic combination that allows us to scale and bring the power of AI & Engineering R&D and next-generation technology to global clients, expanding across industry sectors. We aim to further accelerate our progress and together with Infosys,  it paves a path of innovation opening new opportunities for our teams”, said Shreekanth Sampigethaya & Arup Dash, Co-Founders, InSemi.

The acquisition is expected to close in the fourth quarter of fiscal 2024, subject to customary closing conditions. 

The post Infosys To Acquire InSemi, Driving Innovation in Semiconductor Design appeared first on AIM.

Over the past year, the Indian government has consistently made announcements about establishing fabrication units in the country. However, the anticipation of India’s first commercial fabrication unit still lingers without a concrete development.

In March earlier this year, Union IT minister Ashwini Vaishnaw said that India’s first semiconductor fab would be declared in just a ‘few weeks’. However, nothing materialised.

Again, in July, in an interview with The Economic Times at Semicon 2023, the minister said that his government will approve two high-quality semiconductor chip fabrication proposals in the next 12 months.

Speaking recently on the sidelines of AMD’s inauguration of its largest global design centre in Bengaluru, Vaishnaw said, “India may get three more semiconductor chip fabrication units in the next few months.”

Not only Vishnaw, but also his deputy Rajeev Chandrasekhar has made similar claims. In June, Chandrasekhar claimed that a 40 nm fab would soon be announced, but again, nothing materialised.

Tall promises or work in progress?

India’s ambitions to set up fabrication units have dragged on for a while. In December 2021, the Central government announced a budget of USD 10 billion as incentives to attract chip makers and promote the domestic manufacturing of semiconductors and establish a robust semiconductor ecosystem in India.

Within a few months, India’s prospect looked viable, with three different parties showing interest, most notably the joint venture between Indian conglomerate Vedanta and Taiwanese contract manufacturer Foxconn. Yet, for different reasons, all three deals were called off.

Arun Mampazhy, semiconductor analyst, points out that the IT minister also claimed, back in 2020, that all the applications were good, including Vendanta’s.

“We are aware that none of them received approval; they were all rejected. However, it wasn’t after eight or nine months, as claimed by the minister, but almost 15 or 16 months later. In May 2023, the government finally suggested reapplying, essentially implying rejection. This marks the first broken promise, as nothing transpired within the promised timeframe of one to nine months, and none of the proposed ideas were approved,” he told AIM.

But in October, Chandrasekhar did meet with Russell C. Ellwanger, CEO of Israel-based Tower Semiconductors, to explore the potential of setting up a fab in India.

While details of their discussion remain undisclosed, there is speculation about the prospect of an Indian company, such as Reliance Industries, collaborating with Tower to establish a fab in the country.

Moreover, Dutch semiconductor designer and manufacturer NXP Semiconductor has shown interest in setting up a fabrication in India, given the semiconductor ecosystem develops in the country.

Micron is not building a fab in India

However, besides the Micron deal, India has nothing concrete to show. The US-based semiconductor company earlier committed to set up a USD 2.75 billion semiconductor assembly and test manufacturing facility in India.

Previously, Vaishnaw told Forbes India that, “By December 2024, we should see the first made-in-India chip coming out of the Micron plant.”

But Micron is setting up a packaging and assembly unit, and calling the chips assembled at its plant would be an exaggeration, according to Mampazhy.

“Micron is primarily a packaging facility, contributing about five to six percent of chip value through packaging. Asserting it as a wholly indigenous chip based on this modest value addition seems an exaggeration. The claim of being the first indigenous chip or a ‘Made in India’ chip is too much of an exaggeration in my opinion,” he said.

Additionally, Mampazhy highlights that Sahasra Semiconductors was the first company to manufacture the first ‘Made in India’ chips commercially. Disregarding Sahasra and attributing the label of ‘Made in India’ solely to Micron’s chips is perplexing.

Nonetheless, the government is banking on the Micron deal to entice additional outsourced semiconductor assembly and test (OSAT) vendors to India. Furthermore, Vaishaw has previously asserted that, following the establishment of an assembly unit, Micron will eventually establish a fabrication facility in India as well, considering it a natural progression.

Reportedly, Kaynes Technology, CG Power and Industrial Solutions, and Tata Group are all planning to set up semiconductor assembly units in India. Kaynes Semicon, a subsidiary of Kaynes Technology will invest INR 2,800 crore to set up a semiconductor OSAT and compound semiconductor facility at Kongara Kalan near Hyderabad.

Similarly, CG Power and Industrial Solutions, under the Murugappa Group, said in a stock exchange filing that they have also applied to set up an OSAT unit in India.

Tata Group, on the other hand, established Tata Electronics in 2020, to explore the realms of semiconductor technology. For them, the plan now is to set up an OSAT unit; however, they might look to set up a fabrication facility in the future in partnership with global players, similar to the Vedanta-Foxconn JV.

These are positive developments, and the interest of global players like NXP in India is a favorable sign. Despite setbacks, India seems to be moving in the right direction.

The post India’s Fab Ambitions: Tall Promises or Work in Progress? appeared first on AIM.

IBM is ready to make its way back to India in the technology realm. It has forged three Memoranda of Understanding (MoUs) with the Indian government, focusing on AI, semiconductors, and quantum computing. The aim behind these strategic collaborations is to expedite research and development (R&D) efforts in India and enhance the workforce’s expertise in these key domains.

IBM, in partnership with Digital India Corporation, is set to establish a National AI Innovation Platform (AIIP) with a primary focus on AI skill development, fostering ecosystem growth, and incorporating advanced foundational models and generative AI capabilities. 

Read: IBM Should Help India in its AI Mission

The AIIP will serve as an accelerator, nurturing competencies in AI technologies and their applications for nationally significant use cases. It will also gain access to IBM’s WatsonX platform capabilities, including the utilisation of models in language, code, and geospatial science to facilitate model training for various domains.

Rajeev Chandrasekhar, minister of State for Electronics and IT, emphasised the significance of these technological areas, stating, “These are technologies that will shape the future of tech. The MoUs represent tremendous opportunities for academia, startups, innovation ecosystems, and the broader opportunity of creating global standard talent.”

Additionally, IBM will act as a knowledge partner for the India Semiconductor Mission (ISM) in the establishment of a semiconductor research centre. This strategic collaboration will see IBM sharing its expertise with ISM in the domains of intellectual property, tools, and skills development, all aimed at fostering innovation in semiconductor technologies, including logic, advanced packaging, and chip design technologies.

The Development of Advanced Computing (C-DAC) is also exploring opportunities for collaboration, particularly in supporting India’s National Quantum Mission. Their joint efforts will focus on creating applications in areas of national interest and cultivating a highly skilled quantum workforce.

Sandip Patel, Managing Director of IBM India & South Asia, expressed his commitment to these initiatives, stating, “This collaboration reinforces our commitment to be the trusted partner for India in enhancing its innovation capabilities. Supporting the government’s efforts in building infrastructure, enhancing human capital, and promoting knowledge creation in these three technological areas is integral to India’s digital transformation and economic growth.”

Recently, IBM has also announced an initiative to train a whopping two million learners in artificial intelligence by the end of 2026. The main objective of this step is to focus on underrepresented communities and help close the global AI skills gap.

The post IBM to Boost India’s AI, Semiconductor, Quantum Computing Research appeared first on AIM.

Both China and India are pushing to become self-reliant in the semiconductor space as they recognise the strategic importance of semiconductor manufacturing for technological advancement as well as economic growth. However, China is way ahead with USD 200 billion in investments in the last 20 years. Hence a comparison between these two countries displays a significant contrast; however, this scenario is poised to undergo a transformation in the near future.

Indian Union Minister Rajeev Chandrasekhar is of the opinion that despite spending billions of dollars in the last 20 years on semiconductors, China has failed. India, with investments of around USD 10 billion, can surge ahead of China in the coming years. “We will be in a position to achieve what even bigger countries—who have spent 10 times more money—have not been able to achieve in over 20 years. We have a big opportunity, at least in semiconductors, to surge ahead of China,” he told TOI.  

While the Minister does sound ambitious, the reality is India has a long way to go to catch up with China, but the tide is slowly turning. Despite numerous challenges, and setbacks, India is making progress and hence, it won’t be completely fair to write off the minister’s claims altogether as well. 

Playing to its strengths 

In June 2021, China’s daily chip production reached almost 1 billion units, showcasing its formidable manufacturing capacity. Drawing a manufacturing comparison at this juncture would not be equitable. But, India is on par with China when it comes to chip designing, according to Shashwath TR, chief executive and co-founder of Mindgrove Technologies. 

“When it comes to chip designing, India is on par with China in terms of capability and the number of people participating in the ecosystem. However, until recently, the two countries were structurally different in that while several Chinese design houses have their own chip designs, Indian players mainly provide design services. This has begun to change and will change further,” Shashwath told AIM.

India holds a significant position for international semiconductor firms due to its abundant pool of skilled semiconductor design engineers, constituting around 20% of the global workforce engaged in both collaborative global projects and independent work. Chip makers such as Intel, Qualcomm and Micron have already set up R&D hubs in the country, however, as a result, they also retain much of the Intellectual Property (IP) on the designs. 

To build an ecosystem required to support the industry, chip designing is a good starting point. A thriving chip ecosystem requires design competency and India already has an edge. Through a Design Linked Incentive (DLI) scheme, the Indian government plans to nurture and facilitate the growth of domestic companies involved in semiconductor design. 

As of now, more than 30 semiconductor design startups have been founded in India as part of this initiative, with five of them already benefiting from government support. The increasing number of designs corresponds to a growing pool of IPs attributed to India. Nevertheless, the country must enhance its IP laws to effectively accommodate and foster the research and innovation underway within its borders.

ATPs are important too

Recently, US-based chip manufacturer Micron became the first taker of the Government of India’s Production Linked Incentive (PLI) scheme- a USD 10 billion corpus aimed at promoting and incentivising the manufacturing of semiconductor chips and display fabs within the country. Micron is in the process of setting up an assembly testing and packaging (ATP) facility in Gujarat, India. While the quest to have fabs drags on, Shashwath believes assembly, testing and packaging (ATP) is a field in which India has capability due to our robust electronics manufacturing service (EMS) industry. 

“It is also a very valuable part of the supply chain. Establishing ATP facilities in the country will curtail supply delays and give us a significant edge in the delivery of finished products. Several players are setting up ATMP services, which should be encouraged much more. ATMP is also one of the highest job generators in this value chain. Once the ATMP plants are operational and settled, silicon foundries will follow. They are usually the last to get set up because the economics of the foundry are very hard to solve,” he added.

China too started its semiconductor journey by focusing on ATP and  Outsourced Semiconductor Assembly and Test (OSAT) facilities. Currently, China accounts for 38% of the global global share in the ATMP/OSAT business. Hence, a focus on ATP/ OSAT could be the right direction for India. Chandrasekhar too believes that once Micron comes, other companies will look at India favourably. 

“India’s demographic advantage and expanding domestic market offer lucrative prospects for both local and international semiconductor companies. India’s semiconductor journey is marked by rapid growth, positioning it for a competitive and impactful role alongside China,” Krishna Rangasayee, CEO and Founder, SiMa.ai, told AIM.

Long way to go

While India’s goal isn’t necessarily to directly compete with China but rather to achieve self-reliance, it’s evident that India has a considerable journey ahead to match China’s current position. It’s worth highlighting that China itself isn’t completely self-sufficient and has faced setbacks due to multiple US sanctions. However, for India to surpass China, it must address several challenges that lie ahead.

For instance, “Schemes and strategic investment in this regard would be of utmost help in the case of standards compliance. Given that we are effectively creating a new ecosystem in India, existing regulatory frameworks need to be constantly reviewed and tweaked appropriately to ensure that they do not curtail the growth and competitiveness of the semiconductor ecosystem,” Shashwath said.

Rangasayee too believes China’s investment and commitment to the semiconductor domain through R&D, a robust manufacturing infrastructure and a skilled labour force make them a major global player. The developments in this regard at India’s end have been promising. Besides the DLI scheme, Indian Prime Minister Narendra Modi, while speaking at the Semicon India 2023 event, said that around 300 colleges will start providing semiconductor education to its students. 

Hence collaboration, investment in innovation, skill honing, and business-friendly policies are India’s winning cards. “The journey might have its challenges, but with the right moves, we’re looking at a thriving Indian semiconductor landscape that can rival the best,” Rangasayee said.

The post Can India Surge Ahead of China in Semiconductors? appeared first on AIM.

As India continues its efforts to attract foreign chipmaking companies for establishing foundries within the country, the lack of attention towards India’s sole semiconductor fab situated in Mohali, Punjab, over the years was indeed concerning. Established in 1983, the Semi-Conductor Laboratory (SCL) was set up with the primary objective of promoting the indigenous manufacturing of semiconductor devices, integrated circuits, and other electronics components, crucial for the electronics industry.

Credited with making chips that have been used for Mangalyaan, India’s Mars Orbiter Mission, SCL is already equipped with industry-grade machinery and production lines. “SCL in India stands as one of the rare semiconductor manufacturers that can proudly claim their chips have journeyed to the Moon and Mars,” Anshuman Tripathi, member of the National Security Advisory Board (NSAB), told AIM.

It possesses the capacity to fabricate 200 millimetres (mm) of silicon wafers using the 180 nanometres (nm) process node at a rate of several thousand units per month. Identifying the need to benefit from the already existing fab, in May 2023, the Union government announced a USD 2 billion investment for commercialisation and modernisation of SCL.

This is a welcome move since India’s semiconductor initiative necessitates the transformation of SCL into a commercial entity. Arun Mampazhy, a semiconductor analyst, emphasises that India’s journey towards semiconductor self-reliance hinges on the revitalisation of SCL, marking it as the starting point for achieving an atma nirbhar status in this field.

Modernisation without commercialisation is a likely disaster

For quite some time, the government has emphasised the commercialisation and modernisation of SCL. Last year, MeitY initiated a ‘request for proposal’ (RFP) to identify an agency that would serve as a ‘Transaction Cum Legal Adviser’ for the modernisation or commercialisation of SCL. According to Mampazhy, both commercialisation and modernisation, are equally critical, and modernisation without commercialisation will most likely be a disaster.

Nonetheless, the current plan, as reports suggest, is to transform SCL into an entity with volume production and profitable assets. The objective is to expand SCL’s capabilities across semiconductor design, fabrication, testing, and packaging, aiming to enhance competitiveness, quality, and cost-effectiveness across a broader range of products.

“When opting for modernisation, it must be intricately tied to successful commercialisation, a process that should inherently involve various industry stakeholders, including customers, financial institutions, as well as research institutions and universities. Without the involvement of these key stakeholders, genuine commercialisation cannot be effectively achieved,” Ravindra Prakash Dubey, founder and president, IITians4Nation, said.

Mampazhy even emphasises that commercialisation of SCL is, in fact, the most critical part. So far, despite government initiatives and aid, there are no concrete plans for a fab in India as of yet. Initially, the Vendetta-Foxconn joint venture appeared promising, however, the partnership eventually dissolved, leading to indications that both entities are now independently exploring the construction of fabs.

Even though Union Minister Rajeev Chandrasekhar did suggest that an announcement for a fab is imminent, however, for someone to come in and set up a fab, and to ensure it runs at full capacity, it will take many years. Hence, India should look inward and build on its existing capacity. According to Mampazhy, that is a more viable and logical option for India. Previously, according to an Economic Times report from 2020, the Indian Space Research Organisation (ISRO), which managed SCL at that time, planned to build chips with 65-nanometre nodes. 

Even though 180 nm chips are used in microprocessors, network equipment, and memory chips, the use of 180 nm chips has decreased over time as more advanced process technologies have been developed. Hence, if SCL can start producing 65 nm chips, as reported earlier, it could be a significant boost to India’s semiconductor ecosystem.

Research: Applied vs Academic 

Chandrasekhar also announced that an India Semiconductor Research Centre (ISRC) will be set up which will work in collaboration with top institutions like the IITs on cutting-edge semiconductor research. Dubey, who also mentors multiple startup incubations at different IITs, said that linking SCL with the different R&D labs in the country could be the right step in terms of the proposed commercialisation plans. But it is also critical to ensure that the research done should not just languish in books and research papers.  

“We should begin by assessing the effectiveness of the Indian research ecosystem in transforming research into practical business ventures or viable solutions,” Tripathi said. Today, one drawback of the research ecosystem in India is that it often does not lead to practical solutions. This is not just limited to semiconductor research, the same can be said about other fields such as AI. 

“Moreover, when we talk about research, we must differentiate between applied research and research done by academicians. It’s crucial to distinguish between these two aspects,” Tripathi said. If the aim of ISRC is applied research, then the responsibility shouldn’t lie with academics. “For example, I began my career at STMicroelectronics, where I focused on practical and applied research rather than publishing papers,” Tripathi added.

Mampazhy, on the other hand, raises a further greater concern. He is afraid that the SCL could turn into a research tool in the hands of academics. This could have dire consequences, for example, in a commercial fab, the machines operate continuously round the clock to avoid frequent recalibrations. “Each time these machines are powered on and off, they require recalibration, consuming time and resources, including dummy wafers. The rapid depreciation of machine value also adds to the challenge. In essence, this approach could become a continual financial burden for the government with limited tangible outcomes,” Mampazhy told AIM. 

Despite limited orders, SCL possibly maintains a similar operational model with employees working in three shifts (not confirmed). “If ISRC takes charge of SCL and follows the same practice, it might result in inefficient use of energy. However, if it opts to run operations only during the daytime, it raises concerns about potential layoffs affecting a significant portion of the workforce,” he added.

Leadership is key 

Moreover, effective leadership is crucial for SCL’s optimal growth. While currently led by a director, appointing a CEO and possibly a CTO is vital for its successful commercialisation. Similarly, the leadership of ISRC and the nature of research are also significant considerations. Given SCL is currently under MeitY, it should not meet a similar fate as the Indian Semiconductor Mission (ISL), which still hasn’t managed to find a suitable CEO, despite reports in 2022 suggesting that government will hire someone with over 25 years of experience in the semiconductor industry and more than 10 years of experience at a global level.

In a previous interaction with AIM, Mampazhy had said, “The CEO is a joint secretary of the Ministry of Electronics and IT (MeitY) and has absolutely no semiconductor background. The CTO is a scientist at MeitY and he too has had no real exposure to the semiconductor industry throughout his career.” Hence, it becomes critical that SCL or even ISRC does not go down the same line, and is run by someone with an entrepreneurial mindset. Dubey concurs, and further adds that an entrepreneur mindset is very important in transforming research into practical business ventures and viable solutions.

The post India’s Only Fab at Mohali Awaits Transformation appeared first on AIM.

While AMD, Cerebras and Intel are ambitiously working towards taking on chip leader NVIDIA in their own ways, Tenstorrent has emerged as the brand new player to join the opposing force. And they are doing it by partnering with automobile and electronics companies.  

Canada-headquartered Tenstorrent, a computing company that develops processors and AI-based deep learning processing units, received a $100 million investment from Hyundai and Samsung. Prior to this funding, Tenstorrent had secured $234.5 million in investments with a valuation of $1 billion, and stands as one of the many companies aiming to contest NVIDIA. It secured $30 million from Hyundai, $20 million from Kia, and the remaining $50 million originated from Samsung’s Catalyst Fund along with additional contributions from investors such as Fidelity Ventures, Eclipse Ventures, Epiq Capital, and Maverick Capital, among various others.

Tenstorrent is led by Jim Keller, a well-known figure in the semiconductor realm. Playing a pivotal role as a lead architect for AMD K8 microarchitecture and also participating in the design of processors such as Athlon and Apple A4/A5, Keller’s experience and vision puts him in the forefront for building something that might give NVIDIA a run for the money. 

Keller said that for individuals seeking to construct a high-performance solution integrated with AI, NVIDIA will dominate a significant portion (60%) of the product’s profit margin. “The problem with the winner-take-all strategy is it generates an economic environment where people really want an alternative.” Tenstorrent not only manufactures its own AI chips but also offers its intellectual property and other technologies to clients interested in creating their own AI chips. 

The Golden Automotive Industry 

In 2021, the worldwide market size for automotive chips amounted to $49.8 billion, with a projected growth of $121.3 billion by 2031. This expansion is expected to occur at a Compound Annual Growth Rate (CAGR) of 9.6% from 2022 to 2031. With a positive market on the horizon, chipmakers can reap benefits from the same. 

Hyundai formed a semiconductor development division in the previous year and announced intentions to integrate Tenstorrent’s technology into forthcoming vehicles under the Hyundai, Kia, and Genesis brands. With this investment, the parties look to develop “optimised but differentiated semiconductor technology” which will aid future AI technology development. 

Being one of the globe’s major semiconductor contract manufacturers, Samsung’s decision to invest is understandable. The company has said that the funding will be directed towards expediting the company’s product development, advancing the design and creation of AI chiplets, and enhancing its roadmap for ML software. 

In May, Tenstorrent collaborated with LG Electronics. The partnership aims to develop chips to fuel consumer electronics such as TVs, automotive solutions and data centres. LG will initially adopt Tenstorrent’s AI chip blueprint for its own chip design and Tenstorrent said that they would look at some of the technology that LG has developed. 

A Long Way before the Catch Up

Racing through the computing world, NVIDIA has also branched out to cater to the automobile industry. In collaboration with NVIDIA, Mercedes Benz will work on creating intelligent cockpits and architectures to accommodate AI-driven capabilities for driving. The company had also partnered with other automobile giants such as Jaguar Land Rover and Volvo. 

NVIDIA, is currently the undisputed leader with an 80 to 95% of market share in the AI computing market. The company even touched a market capitalization of $1 trillion and is continuing to surpass its competitors. 

Recently, NVIDIA’s leading H100 chip achieved its highest performance to date on a series of MLPerf training benchmarks. (MLPerf benchmarks assess the hardware capabilities of chips by measuring the time required to complete specific workloads). Partnering with CoreWeave and Inflection AI, the GPU established new records across various parameters in a recent test. The trial employed a cluster of 3,584 H100 GPUs hosted on CoreWeave’s platform, interconnected using InfiniBand technology, enabling exceptional performance at both individual and scalable levels.

Tenstorrent and Keller’s ambitious plan to take on NVIDIA may be far-fetched, but setting a path through partnerships with strategic players may get them close to its competitor. However, NVIDIA’s smooth trajectory route puts them in another league altogether. 

The post Why is Everyone Trying to become NVIDIA? appeared first on AIM.

During the Semicon India held from July 28 to 30 in Gandhinagar, Gujarat, Prime Minister Narendra Modi pitched India as a viable chip-making hub to global investors. “We are becoming a solid conductor for the semiconductor industry,” said Modi. The three-day long event brought together key stakeholders in the semiconductor industry, including government officials, industry leaders, researchers, and technology experts to discuss and showcase the advancements and potential of the semiconductor sector in India.  

Modi and the union ministers put forth intriguing perspectives on India’s semiconductor ambitions. However, even though the government has been pushing hard to bring India on the semiconductor stage, the efforts haven’t yielded any major results. Will Semicon India 2023 change that?

Key announcements at Semicon India 2023

Promising announcements were made at the event, which could give India’s desire to become a semiconductor hub a kickstart. Micron, a US-based chipmaker revealed its plan to invest USD 2.7 billion to develop a new assembly and test facility in Gujarat, which will serve as the centre for the manufacturing of DRAM and NAND products. The hub will cater to both domestic and international markets and will directly create 5,000 jobs and over 15,000 community jobs in the coming years.

Another US-based chipmaker, Advanced Micro Devices (AMD), plans to invest USD 400 million over the next five years and set up its biggest R&D facility in Bengaluru, Karnataka. The centre is expected to come up by the end of this year, and could potentially employ 3,000 engineers.

Vedanta chairman Anil Agarwal revealed that his company is in talks with a ‘world-class’ technology partner and said Vedanta remains committed to establishing a fab in the country. Similarly, Young Liu, the chairman of Taiwanese manufacturing giant Foxconn, commenting on Modi’s statement, expressed his belief in India being a ‘trusted and reliable partner’, advocating for collaborative efforts between the two nations. 

Reports from earlier this month suggested that Foxconn is partnering with Taiwan Semiconductor Manufacturing Company (TSMC) to establish a fab in India. Interestingly, Vedanta and Foxconn had previously collaborated to establish a semiconductor manufacturing unit in Gujarat. However, they eventually decided to part ways.

Entry of semiconductor component players could increase 

While the primary goal is to establish a fab, setting up testing and packaging units in the country would also be a positive step forward. Semiconductor packaging holds the potential to become a pivotal moment in India’s chip-making and fabrication efforts, and the country possesses the skilled talent to emerge as a prominent manufacturing centre, Prabu Raja, president of Semiconductor Products Group (SPG) at Applied Materials, told ET in an interview. 

Micron’s decision to set up a packaging unit in India could lead to five more players entering India, which are part of the packaging ecosystem. Reportedly, Simmtech, a supplier of printed circuit boards, and Air Liquide, a provider of high-purity industrial gases for chip manufacturing, are in discussions with the government to commence operations in India. Furthermore, Disco, one of the world’s leading makers of tools for cutting and grinding silicon wafers, is reportedly also looking to establish a base in the country. 

The Idaho-headquartered firm is also not the only player looking to set up a packaging unit in India. Last year, Tata Sons chairman Natarajan Chandrasekaran confirmed the conglomerate’s entry into the semiconductor space with the establishment of Tata Electronics. The conglomerate is also expected to set up a test and packaging unit, however, the ultimate goal, nonetheless, is to set up a fab. 

India still does not have a fab

Despite some promising announcements at Semicon India 2023, Vedanta, despite facing numerous setbacks, still remains the most likely candidate to set up a fab in the country with Agarwal claiming his company could launch the first ‘made-in-India’ chip in 2.5 years. Micron, despite its USD 825 million investment plan, is setting up a semiconductor testing and packaging unit, and not a fab. 

Meanwhile, even though Foxconn continues to show interest in establishing a fab in India, the company’s dubious reputation makes it unlikely for TSMC to be a potential partner. Recent reports suggest that NXP Semiconductors, a division of Royal Philips NV, has also shown interest in setting up a fab in the country, given they find the right ecosystem. 

Previously, along with Vedanta-Foxconn JV, IGSS Ventures, and ISMC also submitted proposals to set up semiconductor fabs. “IGSS Ventures was not able to show a proper technology licence for 28 nm chips and the Indian Semiconductor Mission (ISM) asked them to get a strong Indian business partner. Even though it’s nowhere written in the policy, it kind of makes sense for India to ask for a strong Indian business partner,” Arun Mampazhy, semiconductor analyst, earlier told AIM.

When it comes to ISMC, which is a joint venture between United Arab Emirates-based investment firm Next Orbit Ventures and Israel-based Tower Semiconductor, the government is waiting for Intel’s acquisition of Tower Semiconductor to complete and to see whether Intel will approve the technology transfer. Given that the agreement expires on August 15th, 2023, it’s still not known whether Intel will seek an extension or the deal will be called off entirely. Intel CEO Pat Gelsinger chose not to comment on the same during the company’s quarterly earnings call.

Besides the three, PSMC (Powerchip Semiconductor Manufacturing Corp), earlier showed interest in setting up a fab in India. Chairman Huang Chongren stated that Taiwan’s third-largest foundry is ready to sign a cooperation agreement with the Indian government. However, nothing much happened after that. AIM wrote to PSMC earlier inquiring about the same, but, they have not responded so far. 

Chandrasekhar, in an interview last month, stated that the government will soon announce a 40 nm semiconductor fabrication unit under the modified semiconductor investment scheme. Whether it’s Vedanta or anyone else is not known, however, Vendata-Foxconn JV’s initial plan was to set up a 40 nm fab. Furthermore, IT Minister Ashwini Vaishnaw told Mint that India should receive two more fab applications in the coming months. 

The post Semicon India 2023 Gives Shape to India’s Chip Ambitions appeared first on AIM.

Indian Prime Minister Narendra Modi will be inaugurating ‘Semicon India 2023‘, to showcase India’s semiconductor capabilities and chip design innovation, on 28 July at Gandhinagar, Gujarat. Companies including Foxconn, Micron, AMD, and Vedanta will offer deep insights into technologies and innovations in chipmaking.

Various dignitaries, including Minister of State for Electronics and IT, Skill Development, and Entrepreneurship Rajeev Chandrasekhar, will be present at the event. Chandrasekhar has been an active voice of the Indian semiconductor industry. At the recent second Semicon India Future Design roadshow held in Bengaluru IISc campus, he announced that India plans to produce a minimum of 85,000 global semiconductor talent in the next two years. 

While the Indian government is eyeing the evolving technology, things have not worked out in the country’s favour in the recent past. Earlier this month, Reuters reported that Taiwanese conglomerate Foxconn will pull out of a joint venture with Indian giant Vedanta Ltd that was set up to produce semiconductors in Gujarat. 

As per the partnership agreement Vedanta would have held 60% equity while Foxconn would have had 40%. Even though India has partnered with IMEC for technological support, the technology will still require several years of development. The situation presented an uncertain future for the Vedanta-Foxconn venture and now the project has fallen through completely. 

While there have been downturns, the Indian government has been optimistic about the investments expected to rise and are already leveraging the talent available here. India is a global leader in engineering design and R&D. It has a favourable demographic advantage with a young workforce and a significant number of technologically-aligned individuals. However, expanding its potential to manufacturing requires more. Unlike the IT sector, the lack of awareness and availability of job options have been some major hurdles facing the industry. 

The post PM Modi to Inaugurate ‘Semicon India 2023’ Amid Foxconn-Vedanta Fall Through appeared first on AIM.

Indian Prime Minister Narendra Modi is scheduled to inaugurate ‘Semicon India 2023,’ an exhibition highlighting India’s semiconductor prowess and chip design innovation, on 28th July in Gandhinagar, Gujarat. The event is expected to feature prominent names such as Micron, AMD, IBM, Marvell, LAM Research, NXP Semiconductors, STMicroelectronics, Vedanta and Foxconn. Over the years, the Indian government has been actively involved in establishing India as a semiconductor manufacturing hub, and in line with this vision, has announced numerous initiatives and policies to promote domestic semiconductor industry growth.

In 2021, the Indian government announced a semiconductor package worth INR 76,000 crore to give the semiconductor space in India a significant boost. Subsequently, union minister Ashwini Vaishnaw announced four distinct schemes encompassing all aspects of the semiconductor supply chain. Among these, the Design Linked Incentive (DLI) scheme aimed to foster and enhance India’s proficiency in semiconductor design.

Now, according to recent reports, the government is currently formulating a proposal to bolster domestic semiconductor chip design companies by acquiring an equity stake in these firms. This initiative is planned as a component of the second phase of the DLI scheme. Currently, the combined revenue of domestic semiconductor design companies is marginal, somewhere between USD 30-40 million. However, experts are sceptical and fear the government acquiring stakes in domestic semiconductor chip design companies could backfire. 

Government shouldn’t play VC

By acquiring stakes in these companies, the government plans to create a bunch of ‘fabless’ companies and nurture a chip design ecosystem in the country. In addition, the government aims to safeguard these companies from selling a substantial portion or all of their shares to international entities, as it seeks to enable their growth and establish them as robust fabless players.

However, while this might help the companies in the short run, what they need to stay competitive in the long run is good product development ideas, according to industry experts. “Don’t understand the logic of the government trying to become a venture capital firm for chip design companies. This move is likely to be ineffective and inefficient,” Pranay Kotasthane, a public policy researcher said.

He thinks if the goal of the Indian government is to create world-class Indian intellectual property, this action is unlikely to achieve it. Companies are naturally inclined to choose foreign buyers as it offers higher valuations and provides access to a global network of customers and investors. 

Moreover, the Narendra Modi-led administration has received immense criticism because of their decision to sell many Indian Public Sector Undertaking (PSU) which were underperforming, or had significant underutilised assets that can be monetised. Given the government’s inability to turnaround these underperforming PSUs, it remains to be seen how the government can bring value to the domestic semiconductor chip design companies.

Accessibility to capital

Besides, a government intervention could be wrong for a multitude of reasons. One of the primary challenges plaguing domestic semiconductor chip design companies is accessibility to capital. In contrast to the software industry, the semiconductor sector has a longer gestation period for return on investments. With tapeout and the final product taking at least three years to reach the market, semiconductor design firms struggle to attract potential investors and venture capitalists, unlike software companies with quicker turnaround times. Hence, the government taking stakes in these companies could further discourage private investors from investing in these companies if the government owns a significant stake, limiting access to vital capital and hindering growth. 

Furthermore, government ownership might lead to increased interference in the companies’ operations and decision-making processes, potentially hampering their ability to innovate and compete in the global market. Additionally, government ownership may also expose these companies to political pressures, affecting business decisions and overall competitiveness. 

Overall, while the government may intend to support domestic semiconductor chip design companies, acquiring stakes in these firms can lead to unintended consequences and hinder long-term growth and competitiveness in the industry. In return, what the government should do is remove the funding barriers that currently exist. “Removing barriers through facilitating more FDI and long-term foreign-domestic private sector linkages can help integrate India’s semiconductor design market with the global markets,” Kotasthane added. 

India’s semiconductor ambitions

So far, the government of India has approved five players under the DLI scheme, Vaishnaw said while speaking at the Bharat 6G Alliance, the Centre for Development of Advance Computing (C-DAC), earlier this month. During the same time, it was also announced that US-based Micron technology and the Gujarat government signed a Memorandum of Understanding (MoU) to set up an ATMP (assembly, test, marking, and packaging) facility in the state. 

However, previously, a joint venture between Vedanta Limited and with Taiwanese electronics manufacturer Foxconn had announced that it will set up its semiconductor and display manufacturing facility at the Dholera Special Investment Region near Ahmedabad, Gujarat.

But as it stands, the JV no longer exists and both parties are seeking new partners to set up fabs in the country. While Vedanta is yet to find a partner, reports suggest Foxconn could partner with TSMC and  Japan’s TMH Group to keep its ambitions of building chips in India alive. Other players to have shown interest include Tata Electronics, IGSS Ventures, and ISMC; however, nothing concrete has happened on either front.

The post Why Government Intervention in Chip Design is a Bad Idea appeared first on AIM.

When it comes to the Indian semiconductor space, Foxconn has grabbed more headlines than any other player in the past year or so — but mostly for the wrong reasons. When Vedanta and Foxconn announced their joint venture last year, many perceived it as the point that kickstarted India’s semiconductor manufacturing ambitions.

Now, since that plan went kaput, it’s now being speculated that Foxconn may partner-up with the Taiwan Semiconductor Manufacturing Company Limited (TSMC) and Japan’s TMH Group to keep its ambitions of building chips in India alive.

Why is TSMC an unlikely partner?

Today, TSMC is one of the largest chip foundries in the world catering to the likes of Apple, NVIDIA, Google and AMD, among others. Headquartered in Hsinchu, Taiwan, TSMC was the first foundry to market 7 nm and 5 nm chips and is currently working on the 3 nm and 2 nm ones.

Considering TSMC’s prominent position in the semiconductor industry, this news has led to a sense of optimism and hope among many Indians. However, Arun Mampazhy, semiconductor analyst, is a bit sceptical. He believes, TSMC was hesitant about moving outside Taiwan. “It’s only because of geopolitical factors and the US agreeing to protect Taiwan that TSMC has agreed to set shop there,” Mampazhy told AIM.

Besides, TSMC is also setting up fabs in Japan and Europe. In Japan, TSMC aims to manufacture 5 nm and 10 nm chips from the second half of the decade. Similarly, in Europe, TSMC is in talks with Germany, to set up a fab in Saxony. Mampazhy believes that establishing fabs in Germany and Japan would be a logical move for TSMC. For instance, in Japan, Sony and Denso serve as partners to TSMC and contribute significantly to its business, thereby providing an advantage for TSMC by setting up a fab in Japan. However, Foxconn does not bring similar benefits to TMSC in India. 

“Given Foxconn is only an assembler, it is unlikely that TSMC will agree to do a technology transfer or share that technology with Foxconn,” Mampazhy said. The only way he sees a potential partnership with TSMC is if Foxconn assumes the responsibility for the financial aspects of establishing a fab in India. “However, even with such support, TSMC faces considerable challenges in managing the workforce required for its upcoming fabs in Japan, the US, and Germany.”

Is the trust in Foxconn waning?

Foxconn tryst with semiconductors isn’t new. Back in 2018, the Taiwanese electronics contract manufacturer had announced plans to establish chip manufacturing facilities in China, but no tangible progress was made on that front. Similarly in India, their joint venture with Vedanta, which was intended to initiate their foray into chip production, too failed to materialise. “Foxconn has a history of promising and not delivering in multiple places. Wisconsin is one, then, there have been other instances of engaging with the Saudi Arabian government, Malaysia, and possibly even Mexico. In about five or six countries, Foxconn has been known to fall short on fulfilling its commitments,” Mampazhy said.

In fact, Foxconn has already been part of many controversies in India. Last year, the contract manufacturer found itself embroiled in one when both Telangana and Karnataka governments simultaneously claimed Foxconn to have signed up for big investments in their respective states to manufacture electronics. In a manner reminiscent of their past experiences, a similar situation unfolded in Foxconn’s foundry plans. Their proposed joint venture with Vedanta, which was well-advanced in talks for a site in Maharashtra, abruptly shifted to Gujarat just before the state elections.

“Foxconn has the reputation for being one of the most opaque companies in an opaque world,” Lawrence Tabak, the author of Foxconned: Imaginary Jobs, Bulldozed Homes, and the Sacking of Local Government, said.  According to him, Foxconn had no problem in making big announcements for the cause of a government’s electoral ambitions without having any concrete plan of action. Hence, given Foxconn’s dubious reputation, the TSMC news could also be smoke and mirrors.

Taiwan’s interest in India

The possibility of the two Taiwanese companies collaborating to establish a fab in India, however, remains to be seen. It is worth noting that the Taiwanese government has exhibited keen interest in India over time. Baushuan Ger, Taiwan’s ambassador to India, earlier said that both nations should sign the free-trade agreement (FTA) at the earliest.

Ger said Taiwan is willing to share its expertise with India in critical sectors such as semiconductors, 5G, information security, and AI. Most recently, Taiwanese foreign minister Jaushieh Joseph Wu also sparked discussions around a FTA with India. While interacting with the press in Taipei, Wu said that Taiwan has been actively encouraging its companies, which no longer find the Chinese market profitable, to relocate their production facilities to India. 

Given, Taiwan alone accounts for about 60% of the total global foundry market, India stands to greatly benefit from such a deal. However, despite keen interest from Taiwan for a FTA with India, nothing has materialised so far. 

The post Why Foxconn-TSMC Partnership is Unlikely  appeared first on AIM.

After its recent joint venture with Foxconn to set up semiconductor and display production plants in Gujarat fell through, many wrote off the Indian conglomerate, and it was seen as a huge setback. However, the failed Vedanta-Foxconn venture is likely to have a positive outcome in disguise. Instead of a single project, there will now be two semiconductor projects, as Foxconn has decided to pursue its own venture. 

During their 58th General meeting held today, Vedanta chairman Anil Agarwal declared, “We have lined up partners for our semiconductor venture. These Ventures will enable our youth to access affordable electronic devices, all of which will help them fulfil their aspirations.” The statement indicated that Vedanta is still in the game. 

In another development, Micron, one of the world’s largest semiconductor companies announced plans to build a new assembly and test facility in Gujarat, entailing a total investment of USD 2.75 billion. 

Micron could well be an alternative to Foxconn for Vedanta. Given the company’s history in the field, it could also be the ideal technological partner that the Indian firm has yet failed to come to agreements with. Micron’s expertise would not only further Vedanta’s cause but help shorten the span of actual output.

Micron is willing to put in $825 million while the rest will be financed by the government in two phases.

All is Not Lost for Vedanta

Moreover, Vedanta has already expressed full commitment to its semiconductor fabrication project and has formed alliances with other partners. Less than a week ago, Vedanta announced the acquisition of the semiconductor and display business from Twin Star Technologies Ltd, which is an entity of Volcan Investments Ltd—the ultimate holding company of Vedanta.

This will position it as the first company in India’s integrated semiconductor and display fabrication business. This is in line with the vision and stance of Vedanta chairman and founder Anil Agarwal on manufacturing in India and making the country a hub for semiconductors and their export. “Semiconductor is today’s oil; we are chip takers (India) and we will become chip makers and this will change our country,” Agarwal had said in an interview.

Agarwal has been at the forefront of India’s semiconductor push and has declared his complete commitment to the cause. “Vedanta is committed to making India self-reliant in electronics. This is the beginning of the creation of a Silicon Valley in India, a cutting-edge and world-class electronics ecosystem. My dream is for every Indian youth to have an affordable smartphone, laptop and an electric vehicle,” Agarwal said in a statement.

Vedanta had also previously said that Indian-made semiconductors and display glass will lead to affordable electronics for all Indians, and getting hands-on smartphones, laptops, televisions, and electric vehicles will become easier.

Catalyst for India Semiconductor Space

Even though the joint venture between Vedanta and Foxconn fell off, it will act as a catalyst to the overall electronics and semiconductor ecosystem. Recently, a slew of developments seem to have rejuvenated the conversation around the semiconductor industry in India, as the country looks to position itself as one of the leading players in the field.

Applied Materials—a leading semiconductor equipment maker announced its plans to invest $400 million in the next four years to build a collaborative engineering centre in Bengaluru. This centre will primarily concentrate on the advancement and implementation of technologies related to semiconductor manufacturing equipment.

Additionally, Lam Research has put forth a proposal to train 60,000 Indian engineers using its Semiverse Solution virtual fabrication platform. The objective of this initiative is to accelerate India’s goals in semiconductor education and workforce development. This could add to Vedanta’s momentum, as an educated workforce could help bring about homegrown innovation in the field powering advancements.

MoS for electronics and IT Rajeev Chandrasekhar also addressed the deal falling through, and said that the Taiwanese electronics manufacturer Foxconn’s decision to pull out of Vedanta joint venture has no impact on India’s semiconductor fabrication plant goal, “This decision of Foxconn to withdraw from its JV with Vedanta has no impact on India’s Semiconductor Fab goals. None,” Chandrasekhar tweeted.

“It’s not for govt to get into why or how two private companies choose to partner or choose not to, but in simple terms it means both companies can & will now pursue their strategies in India independently, and with appropriate technology partners in Semicon n Electronics,” Chandrasekhar tweeted. 

Agarwal, during the company’s general meeting also praised the government and its initiative. He said, “The government led by PM Modi has proactively rolled out the progressive policies for the domestic manufacturing of semiconductors and display back in India this year, subject to government approval, your company will begin a foray into the semiconductor and display fab.”

He also added and has maintained that our country could stand to benefit from the US-China sanction war. “Our country stands to be the financial beneficiary of the China plus one strategy as we have a government that has a razor-sharp focus on creating an investment-friendly environment,” Agarwal said. 

The post Will Vedanta Partner With Micron? appeared first on AIM.

India has grand ambitions in the semiconductor space. Last year, Prime Minister Narendra Modi urged the industry to make India a global hub for semiconductors. However, as it appears, India’s semiconductor aspiration is in total disarray.

Last year, in a landmark decision, the Indian government launched the production-linked incentive (PLI) and sanctioned INR 76,000 crore to encourage semiconductor manufacturing in India. Pretty soon, Indian billionaire Vedanta’s Anil Agarwal grabbed headlines as his venture tied up with Taiwanese company Foxconn to build a chip manufacturing plant in Dholera, Gujarat, on 400 acres of land.

However, a recent Bloomberg report suggested that the Indian government will not incentivise Agarwal’s chip venture, dealing a blow to the billionaire’s aspirations of establishing India’s version of Silicon Valley. According to the report, Vedanta’s application for government assistance seeking substantial funding, did not meet the government’s criteria. Moreover, the project is still in the process of finding a technology partner and acquiring a manufacturing-grade technology licence to develop 28nm chips.

Surprisingly, or coincidentally, a day after the report, the government announced in a press release that they will be accepting new applications for the establishment of semiconductor and display fabs in India starting June 1, as part of the Modified Semicon India Programme.

Back to square one

The India Semiconductor Mission (ISM) was launched with great anticipation in 2021 to drive growth of the industry in India. However, as it appears, we are back to square one. “The delays and inefficiencies in communication and processing have resulted in the loss of one-and-a half-years,” Arun Mampazhy, semiconductor analyst, told AIM.

Previously, three applicants — Vedanta-Foxconn JV, IGSS Ventures, and ISMC — submitted proposals to set up semiconductor fabs. However, for different reasons, it appears unlikely that anyone of the three applicants will be making semiconductors in India anytime soon.

“IGSS Ventures was not able to show a proper technology licence for 28nm chips and the ISM also asked them to get a strong Indian business partner. Even though it’s nowhere written in the policy, it kind of makes sense for India to ask for a strong Indian business partner,” Mampazhy said.

When it comes to ISMC, which is a joint venture between United Arab Emirates-based investment firm Next Orbit Ventures and Israel-based Tower Semiconductor, the government is waiting for Intel’s acquisition of Tower Semiconductor to complete and to see whether Intel will approve the technology transfer. 

As uncertainty looms in the air, Union Minister Rajeev Chandrasekhar took to Twitter to respond to the Bloomberg report. He said, “The first window for more expensive 28nm fabs was kept open for 45 days till January 2022. It received three applicants that were evaluated by ISM and its Advisory group. The strategy now is also encouraging mature nodes of 40nm — current and new players may apply afresh in various nodes that they have the technology for.”

However, when the scheme was first announced, it clearly mentioned that it can be availed by anyone making 28 nm chips — 28-45 nm chips and 46-65 nm chips. “It is uncertain whether the minister is unaware of the specific policy that was in place when the incentives were first announced one-and-a-half years ago, or if he is intentionally making misleading statements to downplay the failure,” Mampazhy said.

Even if it’s the truth, it is not the right way to proceed, Mampazhy emphasised. “It is messy. The government should have come out and said why the earlier applicants won’t be granted any incentives and that they can reapply under the Modified Semicon India Programme. 

This could have legal repercussions

While it makes sense for the government to reopen the applications and request all to reapply. By doing so, they have ensured a fair and transparent process. However, letting the three applicants reapply could also have legal repercussions, according to Mampazhy.

“Similar situations have occurred in the past, such as the case with 2G licences several years ago. The criteria were continuously adjusted by the minister after the deadline, based on the specific applicants received. This kind of modification, done by the government, may raise concerns about fairness and eligibility for obtaining licences,” he said.

India Semiconductor Mission lacks leadership and vision

Given that more than a year-and-a-half after the PLI scheme announcement, we still don’t have any concrete development in the semiconductor space also raises questions about the leadership at ISM. To drive the mission, what it needs is someone who understands the nitty-gritties of the semiconductor industry. However, if we take a look at the top leadership of ISM, they have no background in the semiconductor space. “The CEO is a joint secretary of the Ministry of Electronics and IT (MeitY) and has absolutely no semiconductor background. The CTO is a scientist at MeitY and he too had no real exposure to the semiconductor industry throughout his career,” Mampazhy said.

Other leadership positions at ISM are also mostly filled by scientists from MeitY. In January 2022, reports came out suggesting that the government will hire someone with over 25 years of experience in the semiconductor industry and more than 10 years of experience at global level to serve as the CEO of ISM. But the fact that it has been more than 15 months now, does not bode well with India’s grand ambition. Mampazhy even questions the government’s dedication and seriousness towards making semiconductors in India.

The current situation appears to be a bureaucratic mess, reminiscent of India’s previous attempts to attract global semiconductor manufacturers, raising concerns about the success of the country’s semiconductor endeavour.

Back in 2005, the Indian government tried to attract semiconductor manufacturing giants to set foot in India; however, unfavourable business conditions and bureaucratic hurdles drove them away. India made similar attempts to lure chipmakers in the following years as well without success. Nonetheless, India is in a much better position now, when compared to 2005. Last year, Tata Sons chairman Natarajan Chandrasekaran also confirmed their much-anticipated entry into the semiconductor space.

“To drive India’s semiconductor mission, the government needs to prioritise focus, vision, and strong leadership. It should streamline decision-making processes, ensuring efficiency and promptness,” Mampazhy said.

The post India’s Semiconductor Dreams Plunge into Chaos and Uncertainty appeared first on AIM.

South Korean artificial intelligence chip-making startup ‘Sapeon‘ is raising a funding round that puts its valuation above $400 million. Headquartered in California, Sapeon enables “next-generation AI computing” and solutions. The company designs AI semiconductors for data centres and AI chips for applications. The $400 million valuation will give the much-needed impetus to take on its biggest rival, NVIDIA, the market giants of semiconductors. 

Sapeon’s parent company, SK Telecom Communications, is one of South Korea’s biggest telecommunication operators. CEO of Sapeon, Soojung Ryu, said that the AI semiconductor market is set to cross over $100 billion by 2026. She also believes that with the evolution of AI services like ChatGPT, AI solutions will grow. 

Sapeon has been using their chips in their own “neural processing unit farms” which are computer systems for AI applications. They have also sold their services to cloud service provider, NHN Cloud , and semiconductor company, SK Hynix. Since its inception in 2022, Sapeon’s market value has grown from 80 billion won to 500 billion won (US $380 billion) as of today. Sapeon has an X220 chip in the market which is built on 28 nanometer technology. The company is currently working towards launching a 7-nanometer AI chip which will be manufactured by Taiwan Semiconductor Manufacturing Company Limited, the biggest contract chipmaker in the world. 

South Korea’s Emerging AI Market

With AI chatbots gaining popularity, the demand for AI chips is on an upward trajectory. South Korea is heavily investing in capturing the AI market and Sapeon is not the first Korean company to enter the AI race. South Korean startup, Rebellions Inc., launched an ATOM AI chip last month. The ATOM chip is said to be superior to its rival NVIDIA’s A100 chip by consuming only 20% of power when compared to the latter. 

However, NVIDIA continues to be a leader in the semiconductor space with OpenAI’s ChatGPT fuelling its growth. It is estimated that over 30,000 NVIDIA GPUs will be required to power ChatGPT. 

The post NVIDIA’s Rival Raises a New Round of Funding, Reaches Valuation of Over $400 Mn appeared first on AIM.

South Korean startup Rebellions.ai launched its artificial intelligence chip on Monday. With this launch, the company that builds AI accelerators to bridge the gap between silicon architectures and machine learning algorithms, puts itself in the AI race and aspires to grab government contracts. 

Going on an ambitious route, Rebellions.ai, a Seoul-based company, founded in 2020, launched its latest ATOM chip to compete against NVIDIA, the American corporation that builds GPU and SoC products, which is the world’s 8th most valuable company by market cap. 

Park Sunghyun, the co-founder of Rebellions.ai, said that the ATOM chip is built to run computer vision and AI chatbot applications. Compared to an NVIDIA A100 chip, the ATOM chip consumes only 20% of the power consumed by the former as it targets specific tasks rather than a large range.  

Kim Yang-Paeng, a senior researcher at Korea Institute for Industrial Economics and Trade, believes that, though it is hard to catch up with NVIDIA in the AI chips race, the versatility of AI chips allows multiple functions and that there “aren’t set boundaries or metrics”. NVIDIA Corp stocks have climbed 52% in 2023 and are expected to grow further. 

The South Korean government wishes to bolster research and development in the AI chip industry as it looks to improve its market share in domestic data centres. The government will invest close to $800 million over the next five years, and the demand for AI chips is set to take up 33% of the overall system chip demand by 2030. 

To maintain a strong AI ecosystem, countries must have access to semiconductors to support in-house data centres and public cloud computing, as a shortage of semiconductors will disrupt the flow. The US, China and Taiwan are established players in the semiconductor market, and Japan and Korea are slowly building their space. The global semiconductor manufacturing capacity share of South Korea reached 21% in 2022 from zero in 1990. With Rebellions.ai working on AI chips, the race to establish itself as a global player is seamlessly set. The company has raised over 112 billion won to date.

The post South Korea Enters AI Chip Race with Rebellions.ai appeared first on AIM.

Samsung Semiconductor India Research (SSIR) recently partnered with the Indian Institute of Science (IISc) to promote semiconductor research and development in on-chip Electrostatic Discharge (ESD) Protection in India. CVP & MD of Samsung Semiconductor India Research, Bengaluru, Balajee Sowrirajan, exchanged a research agreement with the Director of the Indian Institute of Science, Govindan Rangarajan, on February 8 in the presence of delegates from both organizations. 

This partnership looks to boost the production of cutting-edge ESD device solutions to protect ultra-high-speed serial interfaces in products such as advanced Integrated Circuits (ICs) and system-on-chip (SoC). Mayank Shrivastava’s team from the Department of Electronic Systems Engineering (DESE), IISc, will lead the research and its solutions will be integrated into Samsung’s advanced process nodes.

Integrated circuits and system-on-chip (a type of IC) are integral components for any electronic system, including computers, smartphones and consumer devices, to function. However, ICs and SoCs are extremely vulnerable and sensitive to ESD failures. The more advanced ICs are, the more they are prone to failure, especially the ones made with advanced nanoscale CMOS (Complementary Metal Oxide Semiconductor) technologies. There are very few players in the market who have rare expertise in interface concepts and work with designing ESD protection devices. IISc is one of those institutes in the world that lead in ESD device research. 

Director of IISc, Rangarajan, considers the collaboration a commitment towards “industry-academia engagements” that can bring in a significant change in the future. IISc is India’s premier institute for advanced scientific and technological research and studies. 

Sowrirajan, CVP & MD, SSIR, calls the partnership a “boost to semiconductor innovation.” He also believes in capacity building by training and opening up opportunities for students and young researchers. 

Samsung Semiconductor India Research is part of Samsung Electronics Co. Ltd. and provides component solutions in System LSI (large-scale integration), memory and foundry. With their partnership with IISc, SSIR is poised to advance their position in the semiconductor industry. 

The post Samsung Partners with IISc to Drive Semiconductor Innovation  appeared first on AIM.

Recently, Minister of State for Electronics and Information Technology (MeitY) Rajeev Chandrasekhar announced that the government is planning to launch a new production-linked incentive (PLI) scheme to support manufacturers of IT hardware and computer servers. 

The government believes that the IT Hardware manufacturing sector in India is at a disadvantage compared to other countries. MeitY believes that the sector is hindered by a lack of proper infrastructure, domestic supply chain and logistics, resulting in a disability of 8.5% to 11% when compared to other major manufacturing economies. 

To level the playing field and boost domestic manufacturers, MeitY has announced a new production-linked incentive (PLI) scheme to support the growth of IT hardware and computer server manufacturers. The scheme aims to give a much-needed fillip to the electronics manufacturing sector and make it more competitive in the global market.

According to government data, production-linked incentive (PLI) schemes for PCB assembly will be provided at a rate of 3% until April 2023 and 2% from April 2023 to April 2024. The same PLI scheme will apply to battery packs, power adapters, and cabinets/chassis/enclosures. After April 2024, the incentive will be further reduced to 1%.

As per Khusbu Jain, Partner, Ark Legal, “The high penetration of Chinese products, particularly in the tech hardware sector, in the Indian market poses a challenge for the government’s ‘Digital India’ initiative. As India aims to become a data-centric nation with all data stored locally, it is crucial to have locally manufactured hardware”.

Khusbu believes that as India’s import dependency on Chinese products remains alarming, the implementation of this PLI scheme will aim towards developing manufacturing capabilities in India which will help achieve its Aatmanirbhar Bharat scheme by reducing its import reliance, mostly on China.

“With the implementation of production-linked incentive (PLI) schemes,” says Khusbu, “the ‘Digital India’ initiative can be given a boost while supporting local manufacturers. Within the next five years, we can expect to see an increase in domestic design.”

PCB woes and worries 

The announcement from Chandrasekhar comes at a moment when the Directorate General of Trade Remedies (DGTR) have recently issued a notification about the initiation of an anti-dumping investigation on imports of printed circuit boards (PCBs) originating in or imported from China and Hong Kong, upon the request of the Indian Printed Circuit Association (IPCA).

As per IPCA, the quality of PCBs manufactured in India is at par with international standards. DGTR also believes that the two products are technically and commercially substitutable and the consumers have used and are using the two products interchangeably. 

It is worth noting that during the April–October period, India imported PCBs worth $478 million from China and Hong Kong, accounting for 55% of the total imports.

According to IPCA, there are over 200 manufacturers of PCBs in India, primarily consisting of micro, small, and medium enterprises that are dispersed throughout the country. However, due to the ongoing dumping of PCBs by other countries in India, IPCA expresses concern that these micro and small enterprises are facing significant challenges.

Problems with manufacturing

While the PLI scheme is a great initiative for local businesses, as we have seen in the smartphone sector, PLI for the IT sector can be successful too. But the question is, when will the manufacturing sector get pushed into electronics in India? 

For instance, the Indian government has offered many incentives to companies manufacturing in the semiconductor industry, still we’ve not seen much of a development in the sector. 

On the matter, Sravan Kundojjala, director at Strategy Analytics, told Analytics India Magazine that this is attributed to a variety of factors. “First and foremost, setting up a semiconductor plant requires huge capital expenditure, while the profitability is very low, at least during the initial period”.

This, Kundojjala believes, is due to the fact that “it takes time for companies to get to the break-even point and ramp up the number of wafer starts per month”. 

If India wants to compete with the likes of China and Vietnam, it also needs to compete with the favourable subsidy structures in areas like machinery used for manufacturing along with research and development.

In addition, while India is providing several benefits to local manufacturers through schemes like PLI, it still lacks when it comes to tax exemptions.

Furthermore, the Indian government also shares the belief that even with its vast economies of scale and a leadership position in electronics manufacturing, China’s dumping margin (DVAR) remains high—ranging from 25% to 40% across various product categories—despite producing electronic products worth $1 trillion.

As a result, China’s imports remain substantial despite its scale and competitiveness. The electronic exports in China are estimated to be around $700 billion while its imports are estimated to be around $500 billion. Therefore, the government believes that even with increased value-addition, large-scale imports may still be necessary.

The post Are PLI Schemes Enough to Revamp the IT Hardware Sector? appeared first on AIM.

Today, semiconductor chips power everything from switching circuits to allowing electronic devices to function and respond to user commands with precision. As such technologies continue to evolve, so do their use-cases across industries. However, perhaps the least known among the use-cases of semiconductor chips is the case of F1 cars. From its design to on-track performance, a grand prix car needs time-intensive research and development to stay competitive year on year. Amidst several components that contribute to the success of this car, semiconductor chips play a critical role in sensors, telemetry units and electronic control units (ECUs).

Tiny But Mighty

F1 is perhaps the most data-driven sport in the world at present. The data in these cars is generated from a variety of sources but primarily from the sensors. 

More than 250 sensors are typically fitted onto the car during a race weekend, which are further divided into three main categories: control, instrumentation and monitoring. Working in symbiosis, these sensors deliver pressure, temperature, inertial and displacement data along with generating data on measurements of physical quantities (i.e., temperature, pressure, torque, speed) and the operation of the system (i.e., the internal state of the car such as the gearbox). Physically connected through an analog system to the ECU that runs the whole car or through a network of buses, called CAN buses, that bring information back to the ECU, these sensors are embedded into all the systems of the car. 

The sizes of the sensors vary according to their function and type. For instance, there is an FIA-mandated TPMS system, which measures tyre pressures and is installed inside the wheels. In addition, the car also carries small, thermal-imaging sensors mounted on the wings and floors that measure the surface temperature and the degradation of the front and rear tyres. It is important to note that drivers are also treated as points of data when it comes to the performance of an F1 car and wear 3mm sensors sewn into the palm of their glove fabric to monitor and record their vital signs during the race.

Data from every such sensor then helps enhance car performance, formulate race-winning pit stop and tyre strategies, and optimise overall on-track drivability for the pilot.

Scaling Mountains of Data

In the duration of two days, a single car produces a terabyte or more of data, which includes ancillary information such as video/media output. However, live data generated by the car while it’s running is nearly 30 megabytes per lap of live data and two~three times more is collected once the car is in the pits/garage and the team offloads the remaining data. On an average race weekend, nearly 11 terabytes of data is generated.

Everything is then synchronised to provide real-time insights into what’s happening at a precise time on each one of the sensors. This data is then encrypted and sent back to the team at the factory through the common telemetry systems for all F1 teams for further analysis. It is interesting to note that the telemetry system, known as ATLAS (advanced telemetry linked acquisition system) developed by McLaren Electronic Systems (MES), is common to all F1 teams. This implies that—though the data remains encrypted—communication between drivers and their on-track teams can be accessed by rival teams in real-time. In the past, drivers have used this system to bluff about their tyre health during the race to throw off rival teams. Mercedes driver and seven-time F1 world champion Lewis Hamilton is especially famous for faking tyre problems on track only to put in fastest laps. However, he believes that it is a “very fine line”.

From Sensors to On-Track Performance

As the car evolves through the calendar, so do the sensing requirements, and to such an extent that existing technologies often do not suffice. The electronics department for F1 cars therefore develops bespoke sensors and data acquisition systems in-house to provide valuable information that can then be deployed to improve car performance. These updates in the car setup also have a direct impact on the team’s success. 

Aside from these self-developed sensors, F1 teams also have strategic partnerships with semiconductor companies such as Qualcomm–Ferrari, AMD–Mercedes, Cadence–McLaren among others to enable experimentation with new solutions on track and help develop a car that stresses the system to its limit.

Gamechangers

It is not only what the sensors communicate but the rate at which they communicate this information that makes a difference. The rate of data depends on the type of sensor and the category which can range anywhere from 1hz to 1 kilo hz. These sensors can also be increased significantly if, for instance, the teams are interested in collecting data about vibration which can then be sampled up to 200 kg per second to detect the g forces on drivers. 

If one were to juxtapose this gathered data to everyday usage of devices, the amount of video information and data that the teams get out of the car might not be much. However, what matters is that every bit of information in the data stream represents important aspects of car performance which are then closely monitored by the teams back at the factories. For example, Mercedes faced significant aerodynamic issues at the beginning of the 2022 season which they then overcame with the help of the data gathered from the sensors on their cars.

To understand what an F1 car does and how the teams manage their data, the best parallel could be the mission control for a spacecraft. The modern F1 car is evidently simpler than a spacecraft system but several similar principles apply to both machineries. 

Much like the spacecraft, F1 teams monitor a range of complex systems along with the humans who operate them. It is noteworthy that the data link from an F1 car is similar to the data link from a spacecraft in terms of bandwidth. Anecdotally, the amount of data collected by a modern F1 car over the course of a single race is more than what was collected across the Apollo space programme.

The post Chips Fuel F1 Cars’ Record Performances appeared first on AIM.

The trend towards economic nationalism has increased the geopolitical slant affecting the dynamic chips technology market. Moreover, the application of artificial intelligence and machine learning has become a fundamental semiconductor industry driver. 

Chipsets are becoming increasingly application-specific as the semiconductor market shifts. Here are 12 major chips industry news from 2022 to keep you updated!

Japan announces plans to homegrow 2nm chips

Japan’s Ministry of Economy, Trade and Industry (METI) announced plans to reduce the dependency on Taiwan for semiconductors by establishing a design and manufacturing unit for next-generation chips. The target for advanced logic integrated circuit (IC) production at 2 nanometers (2nm) is 2027.

Read about METI’s strategy for the revival here.

US restricts sale of AI Chips to China

In September, the US government notified chipmakers Nvidia Corp and Advanced Micro Devices (AMD) to halt the export of AI chips for related applications to Russia and China. The notification was a part of Washington, DC’s tech crackdown on Beijing. Chinese officials have opposed the regulation and accused the US of deviating from fair competition. Furthermore, they believe that this move violates international economic and trade agreements. 

TSMC’s first 3nm chip customer will be Apple

Apple has always been a step ahead of its competitors. According to a report published in August, Apple will be TSMC’s first 3nm chip customer for the M2-powered ‘MacBook Pro’ series. Taiwan Semiconductor Manufacturing Company (TSMC), announced ‘risk production’ of the much-awaited 3-nm process node tentatively in September 2022. The announcement is an upgrade from the 5nm process that was rolled out for mass production in 2020. 

Biden signs Bill to boost US chips production

US President Joe Biden signed a Bill providing USD 52.7 billion in subsidies to boost efforts in US semiconductor research and production and rise in competition with China’s science and technology efforts. The “Chips and Science” law includes an investment tax credit for plants estimated to be worth $24 billion. The White House plans to invest in chip manufacturing companies that will receive grant awards once the Commerce Department clears the rules and regulations to underwrite projects. The legislation will authorise USD 200 billion for ten years in scientific research after passing separate legislation for investments.

IISc design framework for next-gen chipsets for AI applications

Indian Institute of Science (IISc) researchers developed a design framework to build next-generation analogue computing chipsets. Using the framework, they built a prototype of ARYABHAT-1 (Analog Reconfigurable technologY And Bias-scalable Hardware for AI Tasks).

IISc said this type of chipset could be very helpful for AI-based applications which require massive parallel computing operations at high speeds.

Sony and Toyota join forces to flex semiconductor capabilities

Some of Japan’s leading tech firms have come together as part of a $500 million push by the government to help Japan lead in the semiconductor space. Sony, SoftBank, and Toyota are among the firms working on an initiative called “Rapidus”, to design and develop new chips by the end of the decade. 

Intel and AMD halt sales of industrial chips to Russia

In March, two of the largest US semiconductor manufacturers, Intel and AMD, suspended their chip sales to Russia. These restrictions follow the US government’s trade sanctions since Russia invaded Ukraine. The export barriers targeted chips used in the military and dual chips that could be used for military and civilian purposes. This, however, does not include chips for consumer devices like personal computers, mobile phones, digital cameras and more.

Vedanta enters semiconductor manufacturing, ties with Foxconn

Vedanta Limited committed USD 15 billion to enter the chip manufacturing space. Led by its subsidiary Avanstrate, the firm plans to increase the investment to USD 20 billion and lead the business. The firm plans to roll out display units for devices by 2024 and chips from Indian plants by 2025.

China witnessed a downward trend in chip imports

Chip imports to China skyrocketed in 2021 as tensions between the US and China over tech policies escalated, but imports fell 12.4 per cent in September. Earlier in July, the output shrank from 16.6% to 27.2 billion units. According to statistics, around 3,470 chip-manufacturing firms “went out of business in the first eight months of the year”.

Semicon India Conference 2022 held

The Semiconductor Conference 2022 was held to make India a hub for semiconductors and propel the aim of India Semiconductor Mission. The theme of the conference was ‘CatalysingIndia’s Semiconductor Ecosystem’. Speaking at the conference, Indian Prime Minister Narendra Modi said that his government is aware of the untapped potential in the sector.

Nvidia offers a slower chip for China to avoid the US ban

After the US blocked China’s access to Nvidia’s high-end microchips, the semiconductor giant released a substitute with lesser processing speed. The A800 GPU is “another alternative product to the A100 GPU for Chinese customers.” According to the Reuters report, the A800 meets the US government’s test for reduced export control and cannot be programmed to exceed it.

In other news:
Biochips go skin deep

It seems like a sci-fi film, but we are possibly nearing the future where our bodies become a financial authentication device. Walletmor is working in this direction. According to the founder, the British–Polish firm has developed an implantable payment biochip. Wojtek Paprota, the company’s founder and CEO, stated that it might be used anywhere contactless payments are accepted. The chip, a little larger than a grain of rice and weighs less than a gram, consists of a tiny microchip and an antenna enclosed in a biopolymer—a substance derived from plants similar to plastic.

The 2021-22 silicon storm has created an imbalance between supply and demand, affecting many businesses and resulting in revenue misses and lost sales. Given the increasing semiconductor content in everything from computers and mobiles to factory equipment and cars, companies and administrations have partnered to make many interventions, like the Chips bill to expansions in other geographies to catalyze the semiconductor ecosystem. Read the article to get a dozen updates on everything from the fall to the revival of the chip industry.

The post What Happened in the Chips Industry in 2022? appeared first on AIM.

Setting up a semiconductor fab is easier said than done. There are a lot of aspects to look into. This includes, sourcing lithography tools from global manufacturers, having suitable infrastructure such as a vast area of land, copious amounts of water, water recycling system, electricity lines, and labour power, among other things. 

Analytics India Magazine spoke to Arun Mampazhy, a veteran semiconductor analyst, to gauge the cost estimate of setting up a fabrication plant. At the outset, Mampazhy addressed the government scheme surrounding semiconductor operations in India saying, “The bigger picture, if you look at it [the policy], covers a variety of spectrum”.

To begin with, a compound semiconductor or silicon photonics fabrication, for instance, is a smaller investment. A compound semiconductor fabrication will typically consist of three phases—growing wafers, making chips, and packaging—and would total up to $40 million. RuttonSha International Rectifier Ltd, a big player in the power semiconductor industry, is one of the applicants for a compound semiconductor plant. 

However, more than 80 percent of the world’s semiconductors are still made of silicon substrate. Hence, silicon fabrication becomes a crucial area to discuss, with regard to the government’s semiconductor mission. The cost of setting up a silicon fabrication plant is hugely contingent on the technology node the buyers will aim for. This is because you need lithography equipment for manufacturing semiconductor chips, and the kind of tool used decides the range of technology nodes that you can work with.  

Currently, there are three applications in the race for silicon fabrication. They are targeting the following technology node:

(1) IGSS Ventures, which is looking to set up a fabrication unit in Tamil Nadu, is aiming at the range of 28nm, 45nm, and 65nm technology. 
(2) ISMC has proposed a fabrication unit designing 65nm technology. 
(3) Lastly, the Foxconn-Vedanta joint venture will be looking at a 12-inch (300mm) wafer carrying 28nm technology. 

It is important to set the background straight with what the applicants are looking for to determine the cost of the lithography tool that will be needed for the process. Mampazhy said, “The industry typically uses a 200mm wafer for more than 90nm process, whereas less than 90nm process generally requires a 300mm wafer.” Considering the requirements of the buyers, we are looking at a process technology etched on a 300mm wafer size. 

But, within the 300mm wafer size as well, there is a cost bifurcation. Up to 65nm or 55nm technology can be made with 193 Argon Flouride (ArF) Laser, which will cost about $40 million a piece. And if we go further below to the 45nm, 28nm all the way up to 16nm range, a 93-nanometer immersion will be required which will cost about $100 million a piece. 

Mampazhy added that the current policy requires the manufacturers to build a 40,000 per month wafer capacity. To get that kind of production running, he said, you need about 15 to 20 of these lithography tools. This means that the lithography tool you use impacts the overall cost by a huge difference. According to Mampazhy, 65nm to 55nm technology is currently the sweet spot, since you could fully utilise the resources with the best technology available. Hence, 15-20 of 193 ArF lasers would take the cost tally up to $2 billion. 

One of the ways the cost could be controlled is by using refurbished equipment. But, according to Mampazhy, “The government of India is not supportive of this, because they’re afraid that India will become a dumping ground of old equipment.” Besides, there could also be instances where the applicant might quote an overpriced number for the refurbished tool, and get the subsidy for the same. 

The $2-billion figure is however just the equipment cost. Adding to that, the infrastructural cost of setting up a fab will be about $200 million to $300 million. Plus, there will also be a technology transfer fee levied by the companies issuing the lithographic tools to the fabrication plants. The 65nm-55nm range will have a licensing fee of about $300million to $400million, and as we go to the narrower range, the transfer cost increases to about $1 billion for a 28nm range and more if we go further down. 

Together, the three components, Mampazhy said, will add up to $3 billion for the 65nm range. Likewise, we can estimate the total cost at the lower end of the spectrum. 

Govt subsidiary to the rescue 

In September 2022, the Ministry of Electronics & Information Technology (MeitY), modified the existing semiconductor policy. The new programme had additional incentives to attract investments from companies/consortia to create semiconductor and display fabrication ecosystem in India. These incentives include an outlay of ₹76,000 crores ($10 billion), where the government will provide the eligible applicants 50% of financial support of the project cost on a pari-passu basis. 

The incentive package will also apply to setting up compound semiconductors/silicon photonics/sensors (including MEMS) fabs/discrete semiconductor fabs and semiconductor ATMP/OSAT units. The government intends to establish at least 20 such units under this scheme. 

The announcement of the scheme has since sparked interest of quite a few buyers, who wish to avail the scheme. Of late, Reliance and HCL bid to acquire 26-51% stake in ISMC Analog after their proposal to establish a semiconductor wafer fabrication facility in Mysore. 

Beyond the central government subsidy, there are also several state-sponsored schemes pushing India’s semiconductor mission ahead. Gujarat government, for example, proposed additional assistance on the total capital expenditure of selected proposals. The incentives will leave the investors with much lesser investment than they initially had to put in, when kept in proportion to the stake they will have in the production. 

What next? 

India has not been able to attract much foreign interest until now—the reason being it is yet to prove itself as a fertile ground for semiconductor manufacturing. But, once the machine gets running, we can expect India to host semiconductor plants for a wide range of technology nodes catering to a large scale of industries and consumer electronics. 

Therefore, the modified scheme deserves attention particularly because the previous edition of the scheme had an incremental approach to allocating cost for different ranges depending on the technology node. The 28nm or lower range was eligible for 50 percent of the project cost, 28nm to 45nm for up to 40 percent, and above 45nm up to 65nm were eligible for up to 30 percent of the project cost. Thus, the new model has levelled the playfield for everyone.  

Speaking about the road ahead for India in its semiconductor ambitions, Mampazhy stressed that India can have lofty ambitions for the future but at present taking the first step is important. He added, “Be it 65nm or 28nm, for the next 2 to 3 years you build a path…that market will be there for these chips for next at least 10 to 15 years and by that time you can decide what is the next way whether you want to go for advanced nodes that have silicon itself or perhaps in a different direction.”

The post Estimating Cost to Set Up Semiconductor Fabrication in India? appeared first on AIM.

Last year, in a landmark decision, the Indian government launched the production-linked incentive (PLI) and sanctioned Rs 76,000 crore to encourage semiconductor goods manufacturing in India. The scheme was announced in light of inadequate semiconductor chip supply globally, which also affected the sale of goods like cars, phones, and laptops.

This scheme has already started to pay rich dividends as Taiwanese firm Foxconn ties up with Vedanta to build a chip manufacturing plant in Dholera, Gujarat, on 400 acres of land. While Vedanta is financing the project, Foxconn would assume the role of the technical partner.

Massive opportunity

Vedanta and Foxconn will invest USD 19.5 billion to set up semiconductor and display production plants in Gujarat. The joint venture has obtained several subsidies, for example, on capital expenditure and electricity from Gujarat to set up the units, as first reported by Reuters. This Rs 15.4 trillion investment is the largest ever by any group in an Indian state. 

As per media reports, Vedanta will have a 60% equity stake in the venture, while Foxconn will own the remaining 40%. With this deal, an oil-to-metals conglomerate at the core, Vedanta hopes to diversify into the chip-manufacturing domain. 

This deal is expected to create 100,000 jobs in Gujarat. The project will attract companies across the electronics ecosystem value chain. This includes manufacturers of sophisticated equipment, materials like chemicals, high purity glass, photomasks, and equipment service providers. “The company will create a hub for manufacturing of iPhones and TV equipment at Maharashtra, which will be a kind of forward integration for the Gujarat JV plant,” Vedanta founder and chairman Anil Agarwal told media.

State of tussle

However, the deal has been embroiled in its own share of controversies. PM Modi’s home state Gujarat bested Maharashtra to win the plant location. In a statement, a Foxconn representative said that the state’s infrastructure and government support played an active role in increasing the confidence to set up a semiconductor factory there.

A massive political controversy erupted when Gujarat was announced the winner. Opposition parties in Maharashtra are crying foul over the allocation, and Maharashtra Navnirman Sena (MNS) chief Raj Thackeray has sought a probe into the process. Notably, Shiv Sena, along with Congress and NCP, was recently ousted from power, post which the current chief minister Eknath Shinde and his party came to power. 

Through its mouthpiece publication Saamna, MNS alleged that the deal went from Maharashtra to Gujarat as the BJP sought favour from CM Shinde for instating him in his current role. However, Vedanta chairman Agarwal has said that Gujarat was chosen based purely on professional and independent advice.

Gujarat offered Rs 28,000 crore capital subsidy to Vedanta-Foxconn for the plant, against Maharashtra’s offer of Rs 40,000 crore. Further, Gujarat offered 200 acres of land to both companies at Dholera at 75% of the going rate, while Maharashtra offered 1,100 acres of land in Talegaon Phase IV in Pune district – 700 acres of this was offered at 75% of the current rate, and remaining 400 acres for free.

More subsidies & ‘freebies’

Recently, the Union cabinet approved a uniform incentive of 50% of the project cost. This is towards setting up the semiconductor display and compound semiconductor fabrication unit and against the earlier incentive range 30-50% for the three schemes. The incentives for setting up semiconductor fabrication were based on the chip size, but the incentives for display fabrication and compound semiconductor fabs were largely 30% of the total cost of the project.

This new announcement has drawn criticism from experts, comparing the subsidies with freebies. Many doubt if projects like Vedanta-Foxconn and ISMS would swallow a large chunk of the government’s subsidiary allocation. This may even lead to ensuring financial incentives for a select few.

Raghuram Rajan, former RBI governor, has questioned the validity of these subsidies, asking what would stop these manufacturers from moving over to other countries when the subsidies and incentive schemes end? He said, “Manufacturers could also continue production but also demand continued tariff and subsidy protection.”

The post The Big Deal About Vedanta-Foxconn appeared first on AIM.

The Ministry of Electronics and Information Technology (MeitY), in collaboration with the Ministry of Defence, has announced an initiative to offer a ‘deployment-linked incentive (DLI)’ to facilitate the indigenous designing and manufacturing of secure semiconductor devices. Under this initiative, the government is seeking the participation of Indian semiconductor design and manufacturing companies to indigenously design, develop, manufacture, validate and deploy Secure Systems on Chip (SoCs) using Indian-owned processors based on open-source ISA and deploy the SoCs for various applications.

Indigenous chips for Indian defence

The primary goal of this initiative is to promote two variants of indigenously designed and developed secure SoCs – BSC (Bharat secure chip)-1 and BSC-2. The current target that the two bodies have set in place is totalling 5 lakh SoCs. These SoCs would be deployed in several commercial and defence applications and systems.

The core of the SoCs will be based on the processors designed by Indian entities on open source ISA (industry standard architecture). This proposal also requires that the production of the SoCs should not only include the design aspect done in “India by an Indian entity”, but also the development and packaging of the same. Further, 10% of the 5 lakh SoCs should be deployed in systems and equipment for defence forces in the military role of their primary vendors.

The selected bidders would be required to identify a 64-bit Indian-owned processor based on open-source ISA and check its suitability for the intended purpose. The bidder would also be required to submit a report detailing the stability and suitability and that the SoCs meet the requirement of prospective deployment in the applications.

Under this proposal, the government has offered monetary DLI with handing 20% of it in advance. Notably, the defence forces are currently largely dependent on the in-house labs of the Defence Research and Development Organisation (DRDO) for designing semiconductor device requirements. The Semiconductor Laboratory (SCL), situated in Chandigarh under the Department of Space, is being used as the manufacturing base.

In March, a parliamentary panel noted that the shortage of semiconductor chips, along with talent retention and procurement through government e-marketplace, and delayed approval of key projects are some of the challenges faced by the Indian Defence Public Sector Undertaking (DPSUs) amid the push for self-reliance in the sector.

India’s semiconductor push

In December last year, the Indian government approved a Rs 76,000-crore scheme to establish display and semiconductor industries in India. 

“The government of India is keen to incentivise and attract investment in setting up of semiconductor FABs in India. This assumes significance in view of the fact that India is poised to increase its share in the global manufacturing of mobile phones, IT hardware, automotive electronics, industrial electronics, medical electronics, IoT and other devices in the near future as it aspires to have USD 400 billion of electronics manufacturing by 2025,” a government statement said.

Under this scheme, the government provides financial support of up to 50% of the project cost to companies to set up semiconductor and display fabs along with 30% of capital expenditure to set up semiconductor packaging facilities and compound semiconductors. The scheme is expected to generate 35,000 direct and 100,000 indirect jobs.

Interestingly, the Joe Biden-led-US government passed the CHIPS and Science Act of 2022 in August. This bipartisan law focuses on federal aid to encourage the development of microprocessor manufacturing facilities in the United States. This Bill set aside $280 billion to boost domestic semiconductor production and technology research. The focus is to reduce the US’ dependence on overseas supply chains, particularly from China, and to further boost the country’s science and technology base, similar to the PLI scheme introduced by the Indian government. The China clause has created much hullabaloo, and few are anticipating a ‘Chip Cold War.’

The post Chip War: A Step Closer to ‘Atmanirbhar’ Indian Military appeared first on AIM.