Recent Developments in India Regarding Chipmaking - Economy | UPSC Learning
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Recent Developments in India Regarding Chipmaking
Medium⏱️ 8 min read
economy
📖 Introduction
<h4>Introduction to India's Chipmaking Ambition</h4><p><strong>India</strong> is making significant strides in the global <strong>semiconductor industry</strong>, aiming for self-reliance and boosting its electronics manufacturing capabilities. Recent developments highlight strategic partnerships and substantial investments.</p><div class='key-point-box'><p>The push for <strong>domestic chip manufacturing</strong> is crucial for India's strategic autonomy and economic growth, reducing dependence on global supply chains.</p></div><h4>India-Singapore Chip Deal</h4><p><strong>India</strong> recently formalized a <strong>chip deal</strong> with <strong>Singapore</strong>. This collaboration leverages Singapore's established expertise in advanced semiconductor technologies.</p><div class='info-box'><p>Singapore is renowned for its proficiency in manufacturing specific types of chips:</p><ul><li><strong>Memory Chips</strong>: Essential for data storage in electronic devices.</li><li><strong>Logic Processors</strong>: The 'brains' of electronic devices, performing computational tasks.</li></ul></div><p>These critical components are fundamental to a wide array of modern technologies, including consumer electronics and the rapidly expanding automotive sector.</p><h4>Tata's Entry into Commercial Fabrication</h4><p>In a landmark move, the <strong>Tata Group</strong> is embarking on a significant venture by collaborating with <strong>Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC)</strong>.</p><p>This partnership is set to establish <strong>India’s first commercial fabrication plant</strong>, commonly known as a 'fab'. This facility will be crucial for producing semiconductors domestically on a large scale.</p><div class='exam-tip-box'><p><strong>UPSC Mains (GS-III)</strong>: The establishment of India's first commercial fab by <strong>Tata-PSMC</strong> is a key development for questions on industrial policy, 'Make in India', and technological self-reliance.</p></div><h4>Micron Technology's Investment in Gujarat</h4><p>Earlier in <strong>2023</strong>, a major investment was announced by the <strong>US-based company, Micron Technology</strong>. They signed a <strong>Memorandum of Understanding (MoU)</strong> with the <strong>Gujarat state government</strong>.</p><p>This agreement outlines the establishment of a substantial <strong>Semiconductor Unit</strong> near <strong>Ahmedabad</strong>, Gujarat. The project represents a significant financial commitment to India's semiconductor ecosystem.</p><div class='info-box'><p><strong>Micron Technology Project Details:</strong></p><ul><li><strong>Location</strong>: Near <strong>Ahmedabad, Gujarat</strong></li><li><strong>Investment</strong>: Worth <strong>Rs 22,500 crore</strong> (approximately <strong>USD 2.75 billion</strong>)</li><li><strong>Focus</strong>: Primarily on <strong>memory chip manufacturing</strong>.</li></ul></div><h4>Towards Self-Reliance in Memory Chip Manufacturing</h4><p>The overarching goal behind these significant investments and collaborations, particularly the <strong>Micron Technology project</strong>, is to foster <strong>India’s Self-Reliance</strong>.</p><p>Achieving domestic manufacturing capabilities in <strong>memory chips</strong> is vital for national security, economic stability, and positioning India as a global player in high-tech manufacturing.</p>

💡 Key Takeaways
- •India is actively pursuing self-reliance in chipmaking through global partnerships and domestic investments.
- •Key collaborations include a chip deal with Singapore for expertise and Tata's partnership with Taiwan's PSMC for India's first commercial fab.
- •Micron Technology's Rs 22,500 crore investment in Gujarat aims to boost memory chip manufacturing.
- •These initiatives are crucial for India's Atmanirbhar Bharat vision, enhancing strategic autonomy and digital infrastructure.
- •The developments are set to create jobs and position India as a significant player in the global semiconductor ecosystem.
🧠 Memory Techniques

95% Verified Content
📚 Reference Sources
•Ministry of Electronics and Information Technology (MeitY) - India Semiconductor Mission
•Press Information Bureau (PIB) releases on semiconductor investments
•Reputable financial news outlets (e.g., The Economic Times, Livemint) for investment details.