The Aakhya Weekly #87 | Semicon Games V: Time for a roundup!
The Aakhya Weekly #87 | Semicon Games V: Time for a roundup!
In Focus: Global Semiconductor Race
By Yashvika Malhan and Sujaya Sanjay
In this edition of Semicon Games, we’re checking in on players—big and small—and what they have been up to on the semiconductor policy front.
India stuns with a barrage of chip deals
After almost an 8-month hiatus since the last major boost to the chips sector, the Union Cabinet has once again given the green signal to another series of chip deals. The spotlight, however, shines on Tata Electronics Private Limited's partnership with Taiwan-based Powerchip Semiconductor Manufacturing Corp (PSMC), to set up a semiconductor fab facility which will attract a Rs 91,000 crore investment. The unit is being set up in Dholera, Gujarat hailed as the state's very own 'Semicon City' (under Gujarat's Semiconductor Policy 2022-27). Union Minister Vaishnaw highlighted the facility's production will focus on 28 nm chips, supplemented by 40 nm, 55 nm, 90 nm, and 110 nm chips, with a monthly capacity of 50,000 wafers.
The announcement also included establishing two other Assembly, Test, Marking, and Packaging (ATMP) units, another crucial component of the semiconductor value chain. These units are Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) in Assam, and CG Power in collaboration with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, in Sanand, Gujarat.
Following the lead of Gujarat, Odisha, and Tamil Nadu, Uttar Pradesh has also announced its Semiconductor Policy 2024 offering special benefits that go beyond what the Centre offers in its Modified Programme for Semiconductors and Display Fab Ecosystem Guidelines. These fiscal incentives cover interest subsidies, capital subsidies, land rebates, electricity duty exemptions, as well as waivers for transmission and wheeling charges. With a focus on research, development, and upskilling, there are incentives for hiring and even reimbursement of setup costs for standalone R&D centers and Centers of Excellence.
Japan’s chip industry gets a new lease of life
Japan, once a heavyweight in the semiconductor industry, seems to be witnessing a revival fueled by the world’s leading foundry - TSMC. Just recently, on February 24, TSMC made headlines by announcing the opening of its first chip plant on Kyushu Island. The facility is set to commence production by the end of the year, focusing on developing chips ranging from 12 nanometers to 28 nanometers. Accelerating the momentum forward, TSMC and automotive giants have pledged further investment in Japan for a second fabrication plant. Reuters also reported that at least nine Taiwanese chip firms have set up shop or expanded operations in the country over the past two years. The influx of many Taiwanese firms into Japan's semiconductor industry yields substantial benefits for the country, highlighting Taiwan's efforts to diversify its production and secure supply chains amid the ongoing US-China chip war.
UK and the EU
In line with its National Semiconductor Strategy, the UK Government announced a major investment of £11 million ($13.8 million) into two brand-new semiconductor hubs - geared towards pushing for research in silicon photonics and compound semiconductors. The investment, led by organizations like the Engineering and Physical Sciences Research Council (EPSRC) and Innovate UK, will establish two new Innovation and Knowledge Centers (IKCs) at the University of Bristol and the University of Southampton.
Meanwhile, the recent US-EU Trade and Technology Council (TTC) meeting saw extensive discussions between the European Union and the United States regarding semiconductors where the two sought to collaborate more closely to secure critical raw materials crucial for semiconductor production. Alongside the TTC discussions, both parties hosted a stakeholder event dubbed the "Roundtable on the Legacy Semiconductor Supply Chain." Here, industry leaders brainstormed strategies to enhance supply chain resilience and transparency, exploring government interventions to reduce reliance on historically significant semiconductor-producing countries and address non-market policies.
US-China deadlock continues
In Semicon Games 1 (available here), we briefly looked at the US-China chip war. A few months on, the battle has intensified
With advanced chip production now being entirely monopolized by Taiwan and South Korea, the US and Europe are trailing behind. Over in the US, in a bid to revitalize chip manufacturing back to American soil, leading semiconductor companies are making hefty demands from the federal funds allocated under the 2022 Chips Act. Commerce Secretary Gina Raimondo revealed that advanced chip firms are seeking over $70 billion from the program.
In parallel, the U.S. Government is stepping up its investigations into American corporations that are trading with Chinese firms like SMIC. This is part of a larger strategy to contain Chinese growth. The US considers semiconductors to be a high-priority strategic sector and is sparing no effort to prevent an offset of its dominance in chips.
Nevertheless, the Year of the Dragon looks promising for China on the chips front. US sanctions notwithstanding, Chinese technology companies are making progress on advanced chips by leveraging existing equipment. SMIC, China’s biggest chipmaker, has assembled two new semiconductor production lines in Shanghai to mass-produce chips designed by local companies. China is aiming at self-reliance on chipmaking and is determined to outmaneuver US sanctions.
And so, it continues.
As the close contest between the dragon and the eagle continues, other players are quietly moving to build up their positions in the race for semiconductor technology. Japan is emerging as a strong contender in the race by wooing Taiwanese firms to open shop on its shores. The UK and the EU, both important markets with strong multipolar ties, are also looking to bolster their presence in this important supply chain. India, as a new player is also making progress with several new deals in play, although it will take some time before these efforts come to fruition.
The battle for chip dominance continues, with no end in sight.
Top Stories of the Week
Govt. approval before launching AI products: MeitY
The Ministry of Electronics and Information Technology has issued a new advisory to platforms, urging them to seek explicit government approval before deploying any unreliable or under-tested artificial intelligence (AI) models for public consumption. The advisory targets large platforms, excluding startups from its scope. This move aligns with the government's ongoing initiative to regulate AI and combat the dissemination of misinformation. This directive follows a prior advisory from December 2023, which targeted social media platforms, directing them to follow existing IT rules to counter the menace of deepfakes.
The advisory mandates that all platforms must ensure that their AI models do not allow users to host, share, or display any unlawful content. Platforms facilitating the creation of misinformation or deepfakes through software are urged to embed unique metadata or identifiers for tracking harmful content back to its source. Furthermore, with the election season approaching, platforms have been directed to ensure that their computer resources do not enable bias, discrimination, or threats through AI models to uphold the integrity of the process.
In addition to content regulation, platforms are required to inform consumers about the potential fallacies and unreliability of AI-generated content through pop-up mechanisms. This measure aims to ensure that consumers are aware of AI limitations upfront, thereby potentially mitigating consumer lawsuits. On the other hand, users engaging in unlawful information on platforms will face consequences, including termination of their account, or prosecution under applicable law.
Non-compliance with the IT Act and/or IT Rules may lead to penalties for both platforms and users, including prosecution under other laws. Platforms must promptly comply and submit an Action Taken-cum-Status Report to the Ministry within 15 days. MoS Electronics and Information Technology Rajeev Chandrasekhar cautioned that failure to comply could prompt future legislation, making it difficult for platforms to avoid regulation.
MoC Ashwini Vaishnaw launches DoT’s Digital Intelligence Platform (DIP) and Chakshu facility
Ministers Ashwini Vaishnaw and Devusinh Chauhan recently unveiled the Department of Telecommunications (DoT)'s Digital Intelligence Platform (DIP) and 'Chakshu' facility on the Sanchar Saathi portal. These initiatives aim to combat telecom resource misuse in cyber-crime and financial frauds.
The DIP serves as a secure and unified platform for real-time intelligence sharing and coordination among various stakeholders, including Telecom Service Providers, law enforcement agencies, banks, social media platforms, and identity document authorities. However, citizens do not have access to this platform. It facilitates the coordination and storage of information related to telecom resource misuse cases.
Similarly, Chakshu enables citizens to report suspected fraudulent communications, such as messages via SMS or WhatsApp. These communications can be regarding KYC updates, bank account changes, SIM cards, gas connections, etc., and even extortion, or impersonation attempts. It is the latest feature added to the citizen-centric services already available on the Department of Telecommunications’ Sanchar Saathi portal.
This proactive approach is expected to lead to a measurable reduction in cyber-crime incidents and financial losses associated with telecom resource misuse. As these initiatives continue to evolve and gain traction, we can anticipate a quantifiable improvement in the overall security of our digital infrastructure and a corresponding increase in public confidence in digital communications.
A Few Good Reads
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