India is aiming to manufacture silicon semiconductor chips. It has intensified efforts to set up a semiconductor fabrication plant with the help of Taiwan, the market leader, for which the government is investing over $7.5 billion. The Tata Group is in talks with three States — Tamil Nadu, Telangana and Karnataka — to invest over $300 million to set up a semiconductor manufacturing facility.
Meanwhile, there are several techies working in silicon fab and chip-making companies across the globe, notably IIT alumni from Andhra Pradesh, who want to revive the five-year old initiative of bringing the industry to A.P., according to a Mumbai-based venture capitalist. With the Centre moving fast in the direction, the Telugu NRIs see an opportunity in becoming a part of the initiative. At a recent meeting in Visakhapatnam, a Telugu NRI association mentioned that the chip-making industry will be the new focus in development.
The idea of setting up a fab and related industries in A.P. dates back to 2014, when NASSCOM wanted to promote a National Technology Corridor along coastal A.P. stretching through the Visakhapatnam, Rajahmundry and Vijayawada region. Given the abundance of water, sand (raw material for making silicon ingots), road, rail, ports and airport connectivity, the industry body wanted to push and promote the design and manufacturing of electronic chips. Besides, several techies from the region, who are working in chip making industries across the world, want to be part of the fab and chip ecosystem, according to NASSCOM. A team led by the then NASSCOM vice-president, Rajiv Vaishnav, went on an intensive tour meeting stakeholders and exploring possibilities to push the idea and promote niche design and electronic chip manufacturing.
While welcoming such moves by the government and technology experts, local players in the segment say that chip making itself will not be enough. Other aspects such as designing and Intellectual Property are required to make a mark.
An alumnus of IIT-Madras and the CEO of the Andhra Pradesh-based Efftronics, D. Ramakrishna, says, “There are several IIT alumnus virtual groups collaborating to make chip-making a reality in India but it’s a long road ahead. Designing is what brings value to the chips. If the Intellectual Property lies with the foreign entity, we end up manufacturing the basic material which does not serve the purpose. Rather, we need an ecosystem to promote SoCs (System on a Chip) which makes more sense.” There are several firms in India which are now making SoCs, which is a good sign.
The bigger challenge and immediate need for the Indian government is to connect related industries in India to create the ecosystem, industry players say. National capability needs to be enhanced, according to B. Gopi, CTO of the Visakhapatnam-based embedded systems design firm, Sankhya Technologies. “Ours is one among several firms connected to the fab and semiconductor industry. The government should help promote the supply and value chains. Nothing is impossible if things are moved in the right direction. It’s the industry of a high value addition,” he says.
The initiative is an uphill task as many factors need to come together for India to make a mark in the niche chip making and designing industry. Also, upcoming firms should be able to sustain themselves in the market when subsidies from the government are withdrawn. The ground is ready. It’s a matter of time before these firms become part of the global ecosystem.
appaji.r@thehindu.co.in
