Government approves silicon wafer fabrication in India

The Government of India has finally approved silicon wafer fabrication (fab) in the country. According to a press release by the India Electronics and Semiconductor Association (IESA), the move is a highly strategic one on India’s part. The IESA has praised the country’s government for the approval, since it will help boost local manufacturers as well as help drive costs down.

Major countries around the world have their own fabs. This includes US, France, Germany, Ireland, Japan, Singapore, and of course, China. This will not only mean a major spurt of economic growth for the country from the manufacturing of silicon wafers, but also a change for the country to catch up with the rest of the world when it comes to technology.

India can now make its own silicon wafers (image credit: Wikimedia Commons)

According to the IESA presser, the building of silicon wafer fabrication plants will help stabilise the Indian Rupee. It will also prevent project costs from further escalation. Along with this, it will help the development of electronic products in what was earlier a completely fabless semiconductor industry. The IESA also believes that the presence of a local fab in India would boost the country’s capability to build intellectual properties within India.

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India, today consumes close to $7 billion of semiconductor products every year. By 2020, when the total Electronic System Design and Manufacturing (ESDM) market is expected to reach $ 400 billion, this consumption is expected to rise to $55 billion. With the location of a fab in India, the country could potentially achieve a degree of self-sufficiency in electronics, and partially reduce the very high supply chain risks that India is exposed to, without an alternate source for procurement.