17th October 2024
Article: 17th October, 2024
Topic: India’s Semiconductor Market
Relevance: GS Paper: 3 – Economy
Source: News on AIR
Context
- By 2030, the semiconductor market in India is expected to grow to a value of over $100 billion.
About
- A survey by Counterpoint Research and the India Electronics and Semiconductor Association claims that the IT and mobile phone industries are dominating the market, accounting for more than 75% of total sales.
- The market is anticipated to expand at a rate of 13 percent per year, from its 2023 valuation of 45 billion dollars.
- Strong demand and government programs like the production-linked incentive scheme are the main drivers of this expansion.
- Semiconductors are essential to the automotive, electronics, defense, and healthcare sectors.
What are Semiconductors?
- Materials classified as semiconductors have electrical characteristics in between those of insulators (like rubber) and conductors (like metals).
- They have the unusual capacity to behave as insulators in some situations and conduct electricity in others.
- Integrated circuits (ICs) or microchips composed of pure elements, usually silicon or germanium, are other names for them.
- Doping is the process of adding trace amounts of impurities to these pure elements, which significantly alters the material’s conductivity.
- Applications: A wide variety of electronic gadgets make use of semiconductors.
- Semiconductor materials are essential to transistors, which are key parts of contemporary electronic circuits.
- From computers to cell phones, they serve as switches or amplifiers.
- Additionally, semiconductors are utilized in integrated circuits, solar cells, and LEDs.
Why are semiconductors receiving more attention?
- Because of their economic significance, semiconductors have emerged as a major strategic industry area for many nations, with both governments and businesses making significant investments in R&D to stay innovative and competitive.
- A severe shortage of such chips in 2021 demonstrated how reliant on a small number of major vendors the worldwide business is.
- With roughly 44% of the global market, Taiwan is currently the leading chipmaker in the world. China is next with 28%, South Korea with 12%, the United States with 6%, and Japan with 2%.
- Governments are investing enormous sums of money to develop more robust domestic chip industries in an attempt to reduce that reliance.
- India wants to dominate the market, and its rivalry with China is getting fiercer.
India’s advantages
- Skilled Workforce: With a record number of STEM (science, technology, engineering, and mathematics) graduates, India leads the globe in providing the highly skilled labor force needed for semiconductor design, production, research, and development.
- Cost Advantage: Because of its developing ecosystem, efficient supply chain, and cheaper labor costs, India provides a significant cost advantage for the production of semiconductors.
- Global Supply Chain Diversification: In the middle of this industry shift, India has emerged as a top location for back-end assembly and testing activities, with the possibility of front-end manufacturing in the future.
- Policy support: In response to the pandemic-induced glut in the global semiconductor supply chain, the Indian government acted quickly to embrace the opportunity and demonstrated a strong desire to position India as a viable alternative to China in the global semi supply chain.
Government Support
- Semicon India: The program aims to expand the nation’s ecosystem for semiconductor and display manufacturing.
- The program’s objective is to give businesses that invest in semiconductors, display production, and the design ecosystem financial support.
- India Semiconductor Mission: It operates as a specialized branch of the Digital India Corporation.
– Its primary objective is to develop a robust semiconductor and display ecosystem in order to establish India as a major participant in the design and manufacturing of electronics worldwide.
- The government provides incentives for the establishment of industrial facilities in India.
– All technological nodes will get equal financial support of 50% of the project cost under the Semiconductor Fab Scheme.
– Financial assistance equal to 50% of the project cost is provided under the Display Fab Scheme. - 50% of capital expenditures, including support for discrete semiconductor factories, are eligible for fiscal assistance under the Compound Semiconductor Scheme on an equal footing basis.
- A total of 85,000 highly skilled and competent engineers are receiving training in various fields under the Chips to Startup (C2S) Program, which is being implemented at 113 academic institutions, R&D companies, startups, and MSMEs.
- The construction of three semiconductor plants—two in Gujarat and one in Assam—was authorized by the government in February 2024.
The Way Ahead
- The need for semiconductors is growing rapidly due to the emergence of digital technologies, AI, IoT, and 5G. India is in a good position to benefit from this trend because of its growing tech sector.
- International Investment: Leading international corporations are looking into prospects in India, including TSMC and Intel. This foreign investment infusion will help develop local expertise and infrastructure.
- Startup Ecosystem: The semiconductor design and related technologies sector in India is home to a thriving startup ecosystem that promotes innovation and advances the industry as a whole.
- Infrastructure Development: To support the expansion of the semiconductor sector, better infrastructure is being created, including special economic zones (SEZs) for the production of electronics.
- Talent Pool: India has a sizable pool of highly qualified professionals and engineering graduates that can help meet the semiconductor industry’s labor demands.
Also Read Topics & Concepts:
Prelims Practice Questions
Q. Consider the following statements regarding Semiconductor Chips
1. These chips are now a crucial component of modern cars, home appliances, and vital medical equipment.
2. All of India’s semiconductor chip needs are currently met by imports.
Which of the above statements are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Ans: c
Explanation
Materials with a conductivity between conductors and insulators are called semiconductors. They can be compounds such as gallium, arsenide, or cadmium selenide, or they might be pure elements like silicon or germanium.
These days, these chips are a crucial component of modern cars, home appliances, and even medical equipment like ECG machines.
All chips are now imported into India, and the market is expected to grow from $24 billion to $100 billion by 2025.
Mains Model Questions Q. Discuss about the need and difficulties of creating an ecosystem in India for the production of semiconductors and displays.
Introduction:
In terms of its capacity to carry electrical current, a semiconductor is a class of material whose characteristics lie halfway between those of conductors and insulators. By adding impurities or using an external electric field, semiconductors’ electrical conductivity can be changed.
Body:
Importance:
- Strategic Security: Because semiconductors are used in everything from smartphones to military hardware, home manufacturing lowers reliance on outside vendors and lowers the possibility of supply chain interruptions. This strengthens national security and gives India more strategic autonomy.
- Tech Independence: Dependence on foreign chips impedes the advancement of domestic technology. An indigenous ecosystem speeds up technological advancement across industries, enabling India to build its own solutions and become independent on foreign technologies.
- Economic Booster: The sector encourages innovation, draws in international investment, and provides highly skilled jobs. It has a knock-on effect on the economy by boosting downstream sectors like electronics production.
- Decreased Imports: At present, India imports more than $60 billion worth of semiconductors every year. This import bill can be considerably reduced by domestic manufacturing, improving the balance of payments and conserving important foreign currency.
Challenges in the ecology of display manufacturing:
- Technological Complexity: The intrinsic technological complexity involved in creating cutting-edge display technologies makes it difficult to build an ecosystem for display manufacturing.
- Capital-intensive: Investing much in state-of-the-art machinery and facilities is necessary to build a strong display manufacturing infrastructure.
- Supply Chain Constraints: Manufacturing operations may be negatively impacted by supply chain vulnerabilities, such as geopolitical conflicts or interruptions.
- Worldwide Competition: Global strategic planning and ongoing improvement initiatives are necessary to compete on price, quality, and technical innovation.
- Bottlenecks in the infrastructure: Fabrication operations are hampered by an unstable power supply, insufficient water supplies, and ineffective logistics. One major challenge is upgrading infrastructure to fulfill the sector’s strict criteria.
Way Ahead
- Investment in R&D: To stay competitive and meet the changing demands of the market, embrace innovation.
- Collaborative Partnerships: Working together may reduce risks, exchange knowledge, and solve problems in manufacturing and technology development.
Supply chain diversification: Find substitute suppliers for essential components and raw materials to create a more robust and flexible manufacturing environment.
Article: 17th October, 2024
Topic: Stubble burning in India
Relevance: GS Paper: 3 – Pollution
Source: Hindustan Times
Context
- Haryana and Punjab came under fire from the Supreme Court for failing to enforce tough laws on stubble burning, which exacerbates air pollution in northern India.
What is Stubble burning?
- In order to prepare the ground for wheat planting, farmers engage in a technique known as stubble burning, in which they burn the leftover straw from harvested paddy fields. The short interval between rice harvest and wheat planting makes it prevalent.
Why did farmers choose to burn their stubble?
- Fast and economical: It is the least expensive choice for farmers and quickly clears the field.
- Control of weeds and pests: Burning helps get rid of bugs, weeds, and slugs that could harm the following crop.
- Reduces nitrogen tie-up: By reducing nitrogen immobilization, burning can increase the amount of nitrogen available in the soil.
The Disadvantages of Stubble Burning
- Air pollution: Burning stubble releases toxic gases such carbon dioxide, methane, carbon monoxide, and volatile organic compounds (VOCs), which, especially in northern India, lead to smog formation and poor air quality.
- Degradation of the soil: The extreme heat from burning destroys beneficial microorganisms, lowers fertility, and depletes soil nutrients, endangering the long-term health of the soil.
- Climate change: Significant emissions of greenhouse gases exacerbate air pollution and fuel global warming.
Other Options for Burning Stubble
- Power plants based on paddy straw: generates employment and electricity from agricultural trash.
- Adding agricultural residues: Adding crop remains to the soil improves soil fertility, increases yield, and restores vital nutrients.
- Composting: Produces organic manure from leftovers.
Measures to Avoid Stubble Burning
- Graded Response Action Plan (GRAP): An emergency response system called GRAP was created to address the growing levels of air pollution in the Delhi-NCR area. It is applied gradually in accordance with the levels of the Air Quality Index (AQI).
- Financial Rewards and Penalties: The Supreme Court has recommended offering rewards to farmers who abstain from stubble burning and levying fines or lowering the advantages of the Minimum Support Price (MSP) for those who do so.
- The Gauthan Model in Chhattisgarh: In community plots known as gauthans, leftover stubble is gathered and turned into organic fertilizer. This approach creates jobs in addition to lowering emissions.
Also Read Topics & Concepts:
Prelims Practice Questions
Q. Consider the following statements regarding Stubble Burning
1. In order to plant wheat in the field during the last week of September and November, stubble (parali) is burned.
2. The practice of burning the straw stubble that remains after harvesting crops such as wheat, paddy, and so forth is known as stubble burning.
Which of the above statements are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Ans: c
Explanation
In order to plant wheat in the field during the last week of September and November, stubble (parali) is burned. The practice of burning the straw stubble that remains after harvesting crops such as wheat, paddy, and so forth is known as stubble burning. In regions that employ the combined harvesting method, which leaves agricultural residue behind, it is typically necessary
Mains Model Questions Q. Discuss about the problems with stubble burning in India. Additionally, make creative suggestions for recycling crop leftovers.
Introduction:
Due to its harmful effects on air quality, particularly in the National Capital Region (NCR), stubble burning—a common agricultural practice in regions like Punjab—has drawn a lot of attention. Farmers use this technique to quickly clear fields as the harvest season approaches, which causes a number of health and environmental problems.
Body:
Problems Associated with Burning Stubble:
- Deterioration of Air Quality: Punjab has seen an increase in stubble-burning incidents, according to recent data. The air quality in Delhi has deteriorated from “poor” to “very poor.” Following the fire, particle matter PM2.5 levels skyrocket to 60 times the WHO’s acceptable limit.
- Health Risks: Residents of impacted areas are more susceptible to respiratory ailments, cardiac problems, and other health issues as a result of the skyrocketing PM2.5 levels.
- Socio-political Conflicts: The persistent problem has sparked a blame game between states, particularly between Punjab and Delhi, who both accuse the other of causing the pollution problems to worsen.
- Economic Implications: Businesses and daily wage earners have been impacted by the graded action response plan (GARP), which has resulted in limitations such as a ban on truck traffic, coal, and firewood in Delhi.
- Inadequate Infrastructure: Farmers have noted that they do not have access to essential equipment such as seeders and bailers, which could offer alternatives to burning stubble.
- Agricultural Issues: Burning stubble also depletes the soil of vital nutrients, making it less fertile for the following crop.
Creative Ways to Recycle Crop Waste:
- Crop Residue Management Equipment: Encourage and fund equipment such as the Super Straw Management System (Super SMS), which spreads and chops crop residue to facilitate its breakdown.
- Bioenergy Production: Give farmers an extra revenue stream by turning crop waste into bioenergy sources like biogas or ethanol.
- Paper Industry Incorporation: Crop leftovers can be used as raw materials in the paper industry.
- Composting: To improve soil health, promote the large-scale composting of crop debris, which can then be turned into organic manure.
- Promotion of Alternative Crops: By providing farmers with financial incentives or subsidies to cultivate alternative crops that produce less residue, Mr. Mann’s proposal of crop diversity can be expanded.
- Training and Education: Farmers should get regular training on the dangers of burning stubble and the advantages of reusing agricultural leftovers.
Conclusion: Although farmers view stubble burning as a quick fix, it comes with a number of drawbacks, especially in terms of the environment and public health. A combination of administrative initiatives, technology advancements, and farmer involvement is needed to address the problem. In addition to addressing pollution, creative residue management techniques can open the door for sustainable farming methods.