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.