NishithDesai-印度半导体生态系统（英）-2025.11_38页_3mb

Summary of the Indian Semiconductor Ecosystem

Core Content

This document provides an in-depth analysis of the Indian semiconductor ecosystem, focusing on legal, tax, and regulatory pathways that India is pursuing to become a global leader in semiconductor manufacturing. It outlines the technological foundations, industry value chain, and policy initiatives aimed at fostering growth and innovation in the sector.

Main Viewpoints

1. Semiconductor Technology and Its Role

• Semiconductors are fundamental components of modern electronics, enabling functions like amplification, switching, and energy conversion.
• They are essential for technologies such as AI, IoT, robotics, and are deeply integrated into industries ranging from healthcare to defense.
• Moore's Law has historically driven semiconductor innovation, though its relevance is diminishing due to physical and economic constraints.
• Semiconductor manufacturing is capital-intensive, requiring advanced infrastructure, clean environments, and highly specialized equipment.

2. Global Supply Chain Vulnerabilities

• The global semiconductor supply chain is heavily concentrated in specific regions, notably Taiwan, which produces over 60% of the world's semiconductors and nearly 90% of the most advanced chips.
• The pandemic exposed systemic risks in this supply chain, causing global shortages and economic losses, including an estimated $110 billion loss in the automotive sector.
• This has prompted India to pursue self-reliance in semiconductor manufacturing to mitigate such vulnerabilities.

3. India's Semiconductor Ambition

• India aims to become a global semiconductor leader by 2030, with a target market size of $100–$110 billion.
• The government has launched several initiatives to support this ambition, including the India Semiconductor Mission (ISM), Semicon India Programme, and the National Policy on Electronics (NPE 2019).
• The NPE 2019 emphasizes the development of the Electronics System Design and Manufacturing (ESDM) sector, including semiconductor fabrication, display manufacturing, and chip design.

Key Information

4. Industry Value Chain

• The semiconductor value chain involves multiple stages: raw material preparation, wafer fabrication, testing, assembly, packaging, and final testing.
• The process is highly complex, requiring specialized equipment and infrastructure such as cleanrooms, photolithography tools, and testing and metrology tools.
• The value chain is globalized, with no single entity capable of handling all stages, making it challenging for any country to be fully self-reliant, especially for advanced nanometer technologies.

5. Legal and Regulatory Framework

• SICLDA (Semiconductor Integrated Circuits Layout-Design Act, 2000) and its Rules 2001 provide a sui generis framework for protecting layout-designs of integrated circuits.
• Protection is granted for the arrangement and interconnections of components, not for the individual parts themselves.
• The SICLDR (Semiconductor Integrated Circuits Layout-Design Registry) in New Delhi manages the registration process for layout designs.
• Protection lasts for 10 years, from the date of filing or first commercial use, whichever occurs first.
• Only two layout designs have been registered to date, indicating limited awareness and use of the legal framework.

6. Tax and Financial Incentives

• The Production Linked Incentive (PLI) scheme and the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) provide significant fiscal support.
• These schemes offer up to 50% of the capital expenditure as financial assistance for setting up semiconductor fabrication and assembly facilities.
• The NPE 2019 also promotes the fabless chip design industry, which focuses on design and R&D without manufacturing.
• It encourages funding through venture capital funds and provides export incentives for such companies.

7. State-Level Policies

• Several states, including Gujarat, Uttar Pradesh, Tamil Nadu, and Andhra Pradesh, have introduced dedicated policies to attract semiconductor manufacturing.
• These policies include financial subsidies, discounted land, reduced power costs, and tax exemptions, aiming to make India an attractive destination for semiconductor investment.

8. Recent Developments

• The Semicon India Programme has been approved with an INR 76,000 crores ($8.6 billion USD) incentive package.
• The India Semiconductor Mission (ISM) has approved 10 major semiconductor plants across six states, with cumulative investments reaching INR 1.60 lakh crore ($18.23 billion).
• India is on track to launch its first domestically produced semiconductor chip by the end of 2025 using 28–90 nanometer technology, targeting applications in automotive, telecom, power, and railway sectors.

Conclusion

India's semiconductor ecosystem is being actively developed through a combination of national and state-level policies, legal protections, and financial incentives. While the legal framework for protecting layout designs is in place, its utilization remains limited. The government's focus on self-reliance, global partnerships, and infrastructure development positions India as a competitive player in the global semiconductor industry. The Semicon India Programme and the India Semiconductor Mission are key initiatives that aim to accelerate the growth of the sector, making India a more attractive hub for semiconductor manufacturing and innovation.