SYLLABUS

GS-3: Science and Technology- developments and their applications and effects in everyday life; indigenization of technology and developing new technology. 

Context: Rajasthan has formally entered India’s semiconductor ecosystem with the inauguration of India’s first SME-led semiconductor assembly, testing, marking, and packaging (ATMP/OSAT) facility at Bhiwadi, alongside a new Electronics Manufacturing Cluster (EMC).

About the Electronics Manufacturing Cluster (EMC)

• The Electronics Manufacturing Cluster (EMC) developed by ELCINA at Salarpur, Khushkhera, Bhiwadi, Rajasthan, has been developed over 50.3 acres with a project cost of ₹46.09 crore. 

• The Government of India has provided direct support of ₹20.24 crore under the EMC scheme. 

• The cluster is equipped with testing and training centres and a dedicated Skill Development Centre. 

• The EMC has attracted planned investments of over ₹1,200 crore by 20 companies. 

• Eleven companies are currently operational with cumulative investments of over ₹900 crore and employment for over 2,700 persons. 

About the Semiconductor ATMP/OSAT Facility

• The Semiconductor ATMP/OSAT facility of Sahasra Semiconductors Pvt. Ltd. is India’s first Small and Medium Enterprise (SME) to start commercial production of semiconductor chips. 

• Developed under MeitY’s Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), the facility has been set up with an investment of over ₹150 crore. 

• The 57,000 sq. ft. facility is equipped with Class 10K and 100K cleanrooms. 

• The facility will package memory chips, LED driver ICs, eSIMs and RFID products. 

• The unit currently has an annual packaging capacity of 60 million semiconductor units and plans to scale up to 400–600 million units annually over the next 2–3 years. 

• More than 60% of its production is being exported to markets including the United States, Germany, France, Eastern Europe, China, and Nepal.

Government Schemes Related to Semiconductor and Electronics Manufacturing

• Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) was notified on 1st April 2020 to offset the disability for domestic manufacturing of electronic components and semiconductors. 

• The scheme provides a financial incentive of 25% on the capital expenditure for the identified list of electronic goods that comprises the downstream value chain.
• Till February 2026, SPECS has led to a cumulative investment of ₹18,609 crore and employment generation of 64,443. 

• Semicon India Programme: The Government launched the Semicon India Programme in January 2022 to develop a complete semiconductor ecosystem ranging from design, fabrication, assembly, testing, packaging and module manufacturing. 

• The Government has approved 10 projects with investment commitments of about ₹1.6 lakh crore, and commercial production from Micron and Kaynes plants has commenced. 
• Approved companies under the programme have entered into technology partnerships with global semiconductor companies from Taiwan, Japan, Korea, US, UK and Malaysia. 

• Electronics Manufacturing Clusters (EMC and EMC 2.0) Schemes: The government launched EMC (2012) and EMC 2.0 (2020) schemes to provide world-class infrastructure, logistics, and plug-and-play facilities for electronics manufacturing. 

• Under these schemes, 30 Greenfield Electronics Manufacturing Clusters (EMCs) and 5 Common Facility Centres (CFCs) have been established across 18 States. 
• These clusters have mobilized investments of more than ₹30,000 crore and generated around 90,000 jobs. 

• Electronics Components Manufacturing Scheme (ECMS): The government launched ECMS to deepen the supply chain ecosystem and develop a robust electronics component ecosystem in the country. 

• The scheme aims to attract investments in Printed Circuit Boards (PCBs), passive components, electro-mechanical components, sub-assemblies, camera modules and optical transceivers. 
• Till date, 75 applications approved under ECMS are expected to attract investments of ₹61,671 crore and generate 65,040 jobs.

Significance

• Rajasthan’s Entry into Semiconductor Industry: Rajasthan has formally entered India’s semiconductor ecosystem and the strategically critical semiconductor industry. 

• Boost to India’s Electronics and Semiconductor Manufacturing: The event marks a significant milestone in India’s journey towards becoming a global hub for electronics manufacturing and semiconductors under Make in India, Digital India and Atmanirbhar Bharat. 

• MSME-Led Semiconductor Manufacturing: India has taken a notable step in its semiconductor ambitions with the inauguration of its first SME-led chip manufacturing facility. 

• Export-Oriented Semiconductor Production: More than 60 per cent of the facility’s production is being exported to international markets, highlighting India’s growing integration into the semiconductor supply chain. 

• Development of Bhiwadi as Manufacturing Hub: Rajasthan Semiconductor Policy 2026 aims to develop the region near Delhi NCR into a manufacturing hub. 

• Bhiwadi, traditionally known mainly for the automobile sector, is now emerging as a centre for semiconductor and electronics industries as well.

SOURCE:
DD News
The Statesman
Sansad