Semiconductors

What is a semiconductor?

• Semiconductors are materials whose electrical conductivity lies between conductors and insulators.
• Semiconductors are important for modern electronics, including transistors, diodes, and solar cells.

Types of semiconductors:-

• Intrinsic semiconductors: Pure form of semiconductor materials, such as silicon (Si) and germanium (Ge).
• Extrinsic semiconductors: Doped with impurities to increase conductivity.

Two types:-

• N-type: In n-type semiconductors the main charge carriers are electrons.
• These are called donor semiconductors because they have an excess of electrons. (For example, phosphorus in silicon).
• P-type: P-type semiconductors are obtained by adding impurities of three valence atoms (such as aluminum or indium) to pure germanium crystal.

Properties of Semiconductors:-

• Conductivity: This can be modified by doping and temperature changes.
• Band gap: The energy difference between the valence band and conduction band determines electrical conductivity.
• Charge carriers: Electrons in N-type and holes in P-type semiconductors.

Applications of Semiconductors

• Transistors: Key components in amplifiers and switches.
• Diodes: Allow current to flow in one direction, used in rectification.
• Integrated circuits (ICs): Used in computers, smartphones, and other electronic devices.
• Solar cells: Convert sunlight into electrical energy.
• LEDs: Emit light when current flows through them.

Main Semiconductor Materials

• Silicon (Si): Most widely used.
• Germanium (Ge): High electron mobility, used in high-speed devices.
• Gallium arsenide (GaAs): Used in high-frequency and optoelectronic applications.

Recent Developments:-

• Graphene and 2D materials: Emerging materials with potential applications in nanoelectronics and flexible devices.
• Quantum dots: Used in display technologies and quantum computing.

Important semiconductor devices

• Field-effect transistor (FET): Controls current using an electric field.
• Metal-oxide-semiconductor FET (MOSFET): Widely used in digital and analog circuits.
• Photovoltaic cells: Convert light into electricity in solar panels.

Importance of Semiconductors

• The foundation of modern electronics: Semiconductors are part of the manufacturing of modern electronic devices, including computers, smartphones, and various digital devices.
• Enabling technological advancement: They are critical to the development of new technologies such as artificial intelligence, 5G networks, and advanced computing.
• Economic impact: The semiconductor industry drives significant economic activity, contributing billions to the global economy and creating many jobs.

Taiwan Semiconductor Manufacturing Company (TSMC)

• TSMC is the world’s largest and most advanced semiconductor foundry.
• It is crucial in the production of IC chips that power devices from leading tech companies such as Apple, Nvidia, and Intel.
• Technological leadership: TSMC is at the forefront of semiconductor technology, consistently producing the smallest and most efficient chips.
• Market dominance: TSMC holds a leading market share, making it a key supplier in the global tech supply chain.

Why is Taiwan important for India?

• Strategic partnership: Strengthening ties with Taiwan can help India secure a stable supply of advanced semiconductors, which are essential for its growing tech industry.
• Technology transfer: Collaboration with Taiwanese companies can facilitate technology transfer and boost India’s domestic manufacturing capabilities.
• Economic growth: Investment and partnerships in the semiconductor sector can drive economic growth, create jobs, and enhance India’s position in the global technology landscape.

Taiwan’s Semiconductor Industry

Key Points:-

• Taiwan’s control over advanced chip manufacturing makes it nearly irreplaceable in the tech world.
• China’s interest in Taiwan and its exclusion from advanced chip technologies pose significant threats.

Silicon Shield Paradox

Taiwan’s “Silicon Shield”:-

• The semiconductor industry in Taiwan is known as the “Silicon Shield.”
• The term suggests that Taiwan’s key role in the global supply of semiconductors gives other countries a strong incentive to defend Taiwan against potential Chinese aggression.

Paradox:-

• Global dependence: The world’s dependence on Taiwan’s semiconductors is a strategic advantage.
• This dependence could force other countries to defend Taiwan in the event of a conflict with China.

TSMC’s Global Expansion 

Meeting Customer Proximity Demands

• To meet its customers’ need to mitigate geopolitical risks, TSMC is expanding its production capabilities by building new fabrication plants (fabs) in the US, Japan, and Germany.

Key Developments:-

• New Fabs: TSMC’s investments in building fabs in other countries are aimed at diversifying its manufacturing base.
• Strategic Location: Setting up fabs in the US, Japan, and Germany helps TSMC serve key markets more effectively.

State of India’s Semiconductor Ecosystem

Current Scenario:-

• India is actively working on developing a strong semiconductor ecosystem by leveraging its large market potential, talent pool, and government support.
• Objective: To reduce import dependency and establish domestic manufacturing capabilities.

Historical Context:-

• Since the 1990s, India’s established chip manufacturing industry supports its semiconductor manufacturing efforts, creating opportunities for a variety of professionals beyond electronics and computer engineers.

Market Potential:-

• The rapidly growing population and expanding middle class create a strong demand for semiconductor products.
• India’s semiconductor market is projected to reach $55 billion by 2026, which emphasises its focus on domestic manufacturing.
• Emphasis on skill development and innovation to nurture domestic chip manufacturing skills.
• Continuous development of a high-quality talent pool in semiconductor design and manufacturing.
• Issues Related to Domestic Manufacturing of Semiconductors

Challenges in Domestic Production

• India faces several obstacles in establishing a strong domestic semiconductor manufacturing ecosystem.

These challenges include:-

• High Capital Investment: Setting up fabrication plants (fabs) for semiconductor manufacturing requires significant capital investment, which can cost billions of dollars.
• Lack of Skilled Workforce: The semiconductor industry requires a highly skilled workforce, which is currently limited in India.
• Lack of infrastructure: Adequate infrastructure, including stable power supply, water resources, and advanced technological facilities, is critical for semiconductor fabs.
• Supply chain dependencies: India is heavily dependent on imports for raw materials and semiconductor equipment, which impacts the self-sufficiency of the domestic semiconductor industry.

India Semiconductor Mission (ISM)

• Launch Year: 2021 Under Ministry of Electronics and Information Technology (MeitY).
• Financial Outlay: ₹76,000 crore.
• Objective: Development of a sustainable semiconductor and display ecosystem in the country.
• Assistance: Provides financial assistance to companies investing in semiconductor, display manufacturing, and design ecosystem.

India Semiconductor Mission (ISM) Components

Scheme to set up semiconductor fabs in India:-

• Objective: To attract large investments to set up semiconductor wafer manufacturing facilities.

Scheme to set up display fabs in India:-

• Objective: To set up TFT LCD/AMOLED-based display manufacturing facilities.
• Scheme for Setting up Compound Semiconductor/Silicon Photonics/Sensor Fabs and Semiconductor Assembly, Testing, Marking, and Packaging (ATMP)/OSAT Facilities in India:
• Objective: To set up Compound Semiconductors, Silicon Photonics, Sensor Fabs, and ATMP/OSAT facilities.
• Assistance: Financial assistance covering 30% of capital expenditure.

Design Linked Incentive (DLI) Scheme:-

• Objective: Development and deployment of Integrated Circuits (ICs), Chipsets, System on Chip (SoC), Systems, and IP Cores.
• Assistance: Infrastructure and financial incentives.
• Goal: To establish India as a global hub for electronics manufacturing and design.
• Outcome: Structured, focused, and comprehensive promotion of the semiconductor and display industry.

Government Initiatives for the Semiconductor Sector

Production Linked Incentive (PLI) Scheme:-

• Encourages semiconductor manufacturing and aims to boost domestic production.

Digital India RISC-V (DIR-V) Programme:-

• Focuses on promoting innovation in the production of microprocessors and digital technologies.

Modified Special Incentive Package Scheme (M-SIPS):- 

• Provides financial incentives to attract investments in the semiconductor manufacturing sector.

Chip to Startup (C2S) Programme:-

• Aims to train high-quality engineers and support the semiconductor startup ecosystem
• India’s agreements with other countries on semiconductor collaboration
• Collaboration with the US: India and the US have agreed to collaborate on developing a resilient semiconductor supply chain focusing on R&D, manufacturing, and design.
• Collaboration with Taiwan: India has held discussions with Taiwan to secure investments and technology transfer in semiconductor manufacturing, leveraging Taiwan’s expertise in this field.
• Collaboration with the European Union (EU): India and the EU are considering partnerships in semiconductor research aimed at promoting innovation and sharing technological advancements.

Prospects and challenges

• TSMC’s new facilities in the US, Japan, and Germany are aimed at meeting customer demands and mitigating geopolitical risks.
• This shift could affect Taiwan’s security and economic position given its dependence on semiconductor manufacturing.
• The semiconductor industry is at the center of the growing technological rivalry between the US and China.