The decision of the Delhi government to prepare a specific semiconductor policy is an important change in the attitude of India towards the creation of a strong and highly competitive in the world semiconductor ecosystem. Delhi has been developing a strategy that at a time when semiconductors have become the keystone of modern economies, driving industries as artificial intelligence to defence systems, there is a transition to less manufacturing-centric models to more knowledge-based ones, which are design-led.
This project is very consistent with the overall vision of Atmanirbhar Bharat and the national effort in the India Semiconductor Mission but acknowledges the financial and structural realities of chip fabrication.
Semiconductors: At the heart of strategic and economic power.
Semiconductors are not merely inputs in the industry anymore; they are a strategic asset. They support key industries like electronics, telecommunications, automobiles, defence, space technology and new areas like AI and quantum computing.
The reliance of countries on global chip supply has been exposed by global shocks like supply chain shocks, geopolitical tensions, etc. In the case of India, where most of its semiconductor needs are imported, it is economic as well as a strategic move to develop national capacity.
Strategic Positioning of Delhi: Beyond Fabrication.
In contrast to states with capital-intensive wafer fabrication (fabs) plants, Delhi is deliberately moving into more value-added areas of the semiconductor value chain. These include:
- Design of chips and intellectual property (IP) development.
- Research and development (R&D).
- High level packaging and testing.
- Innovation-driven semiconductor services
This practice has an economic pragmatism. It takes huge capital, continuous electricity and water supplies and gestation to get fabricated. Design and R&D on the other hand are knowledge intensive and can be more aligned to the capabilities of Delhi such as talent pool, educational institutions and start up ecosystems.
Semiconductor Policy of Delhi with Five Pillars.
The framework of the proposed policy is based on five pillars, which means it is a holistic and ecosystem-based approach:
2. Semiconductor Design and IP Development.
Concentrate on developing domestic chip design and development of an intellectual property that can compete worldwide.
2. Research and Innovation
Promoting the collaboration of academia, research institutions and the industry to promote innovation within semiconductor technologies.
3. Manufacturing-Enabling Activities
Marketing of Assembly, Testing, Marking and Packaging (ATMP) and Outsourced Semiconductor Assembly and Testing (OSAT) facilities, which are not as capital intensive but important to the value chain.
4. Skilling and Development of Talent.
Developing an effective workforce by using specific training programmes, industry association and curriculum integration.
5. Startup and Industry Linkages
Assisting semiconductor startups, assisting access to funding and establishing connection to global supply chains.
Incentives and Ecosystem Development
The policy is likely to provide a combination of financial and non-financial incentives such as:
- Infrastructure support and capital subsidies.
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