Pyrops WMS

Supply chain for chips must be diversified

The centre is keen to diversify the supply chain of semiconductors and the Ministry of Electronics and Information Technology (Meity) is working on a follow up scheme for promotion of manufacturing of electronic components and semiconductors (SPECS) that ended on March 31, said Meity secretary S Krishnan.

Speaking during the launch of fabless semiconductor startup IVP, the Meity secretary said, the supply chain for semi-conductor needs to be diversified. “That’s partly what the pandemic also taught us not to rely on one sort of supply chain. Some amount of diversification becomes important, and that’s what the Government of India is keen on,” he said.

Highlighting the success of India on the design side of the semiconductor industry, he said that 20-25% of the design workforce globally is based out of India. “But when it comes to manufacturing, it is entirely different services,” he added.

He said of the $10 billion (Rs 76,000 crore) allocated for the semiconductor mission, around Rs 70,000 crore has already been committed. Highlighting that Tata Electronics is building a mega semiconductor fabrication facility (fab) at Dholera, he said India needs more fabs and other stakeholders like supplies and equipment manufacturers. “Many of those are not large companies but small. There are nearly 300 vendors who will be required to be there in close proximity,” Krishnan said.