In a significant development for the global semiconductor landscape, India and the United States finalized a semiconductor manufacturing deal during Prime Minister Narendra Modi's visit to Washington in September 2024. This agreement aims to establish a semiconductor fabrication plant in Kolkata, focusing on critical sectors such as defense, telecommunications, and renewable energy. The partnership is viewed as a pivotal step for India to enhance its role in the global chip supply chain, drawing parallels to India's civil nuclear agreement with the US in 2005. [e6e7410e]
Union Minister Jitin Prasada had previously announced on September 24, 2024, that Uttar Pradesh would also establish a semiconductor manufacturing unit, further solidifying India's ambitions in this sector. Prasada emphasized that Uttar Pradesh is set to become a 'growth engine of India,' attracting investments in semiconductor manufacturing as the country positions itself as a major destination for chip production. [ab01e528]
The recent MoU between India and the US for chip manufacturing is expected to foster technological innovation and bolster India's digital transformation efforts. In addition, experts have highlighted the necessity of developing a robust cybersecurity ecosystem to support the semiconductor industry, which is essential for securing digital infrastructure. [ab01e528]
Japan is concurrently making strides to reclaim its status as a global technology leader, particularly in the semiconductor sector. The Rapidus project, a joint venture with IBM, is at the forefront of this initiative, backed by over $27 billion from the government. This ambitious project aims to produce cutting-edge 2-nanometer chips at a new factory in Chitose, Hokkaido. This technology, pioneered by IBM, represents a critical step for Japan, whose market share in semiconductors has plummeted from over 50% in the 1980s to less than 10% today. [37dbee3a]
In addition to Rapidus, Japanese chip companies are investing billions and collaborating with foreign firms to enhance their global presence. The government is shifting its industrial policy to focus on collaboration rather than isolation, supporting smaller projects, and attracting foreign investments, such as the Taiwan Semiconductor Manufacturing Company (TSMC) plant in Kikuyo. This approach is part of a broader strategy to revitalize Japan's economy and regain its competitive edge in the semiconductor industry. [37dbee3a]
Meanwhile, in the United States, the Rochester Institute of Technology (RIT) has received a $3 million grant from the National Science Foundation (NSF) to advance interdisciplinary research in semiconductor technologies. This funding will support 20 doctoral student fellowships, aiming to prepare over 170 semiconductor engineers and scientists. The training program will emphasize next-generation CMOS technologies and address skill gaps in advanced materials and devices, characterizations, packaging, modeling, simulation, and semiconductor manufacturing processes. This initiative is part of the NSF's Research Traineeship Program and is expected to contribute significantly to workforce development in the semiconductor industry. A study by the Semiconductor Industry Association and Oxford Economics predicts a significant shortage of skilled workers in the semiconductor sector by 2030, highlighting the urgent need for educational programs like RIT's. [4314adba]
In India, Tata Electronics is making waves in the semiconductor industry by exporting chips packaged at its Bengaluru R&D center to partners in Japan, the US, and Europe. The company is nearing the successful tape-out of semiconductor chips in various nodes, including 28, 40, 55, and 65 nanometers, contributing to the Make in India initiative. Tata Electronics has formed strategic partnerships with companies like Tesla, Renesas, and Lattice Semi, and is planning a chip packaging unit in Assam and a chip foundry in Gujarat. This growth reflects a broader trend of increasing domestic manufacturing and exports in the Indian semiconductor sector. [46cd07f8]