NITI Aayog Advocates Strategic Focus on Semiconductor Design and Packaging
Focus on design, packaging over wafer race: NITI Aayog
Image: The Times Of India
A NITI Aayog report suggests India should prioritize its strengths in semiconductor design, outsourced assembly, and advanced packaging over competing in wafer manufacturing. The focus should be on mature-node technologies and foundational products to enhance the domestic semiconductor ecosystem and achieve a target of $120-150 billion in the sector by 2035.
- 01NITI Aayog emphasizes the importance of focusing on design, OSAT, and advanced packaging rather than the wafer race.
- 02The report highlights the need for India to prioritize capital and talent based on strategic importance in the semiconductor value chain.
- 03Experts recommend concentrating on mature-node products, which are easier to manufacture and have strong demand.
- 04The target for India's semiconductor value chain is set at $120-150 billion by 2035.
- 05Investment in R&D and future-node readiness is essential for building a competitive semiconductor ecosystem.
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A recent report from NITI Aayog recommends that India should focus on leveraging its strengths in semiconductor design, outsourced semiconductor assembly and testing (OSAT), and advanced packaging instead of pursuing wafer manufacturing. The report argues for a strategic allocation of resources towards mature-node technologies and foundational semiconductor products, such as power semiconductors and mixed-signal chips, which are critical for the economy. Experts like Raja Manickam and Ashok Chandak support this view, suggesting that India should build its manufacturing capabilities on well-defined, high-value products before aiming for advanced nodes. The report sets an ambitious target for India's semiconductor value chain, aiming for $120-150 billion by 2035, while stressing the importance of continued investment in research and development to ensure future competitiveness.
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The strategic focus on semiconductor design and packaging is expected to enhance India's position in the global semiconductor market, potentially creating jobs and attracting investments.
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