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Don’t Let #FabInIndia For Chips Slip Between The Cup And The Lip

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Don’t Let #FabInIndia For Chips Slip Between The Cup And The Lip

Time is of the essence here. Ministry of Electronics and Information Technology (MeitY) should not delay finalising the scheme or the policy on semiconductor fabs in India any further

One year ago, on 2 June 2020, Union Minister Ravi Shankar Prasad announced three schemes to boost electronic manufacturing in India, the video for which is available here. He started the press conference by saying, “Today is a historical day in our efforts towards Atmanirbhar Bharat (self-reliant India) (in the field of electronics)”.
Since then, I have written a series of articles in Swarajya and elsewhere focusing on the need for semiconductor fabs in India, covering technical aspects, challenges and suggestions to address them as well as tracked developments from the side of the government of India during this one year and even some from the past.
In my 8 April 2021 article, I had put out some thoughts related to the “unofficial news” of the $1 billion incentive offer for semiconductor fabs for each approved proposal that the Ministry of Electronics and Information Technology (MeitY) would receive through the Expression of Interest (EOI) it opened on 15 December 2020 and also wondered if the deadline would be extended for the fourth time.

I had suggested that instead of endlessly waiting for some “perfect” proposals to come from possibly the best in the world, they should just finalise the incentives for the good proposals it would have already received. I had also given the example of one such based on hints already available in the public domain.

The fact that MeitY did not extend the deadline beyond 30 April 2021 was giving some hopes that the much-awaited exclusive scheme or policy to incentivise #FabInIndia will come out soon, incorporating the suggestions from the proposals that MeitY has received.

However, on 21 May 2021, The Financial Express quoted Ajay Sawhney, Secretary to MeitY, as saying: “We are working to formalise an incentive structure for setting up display as well as semiconductor fabs in the country. In the coming six months, we will try to come out with a concrete proposal”.
If that is true, it is surprising to see the government asking for another six months. This effort is not a completely new one, and there was already news of an exclusive scheme to support fabs being in the works, for example, as per this report from April 2020 and interview of Union Minister Ravi Shankar Prasad from July 2020.

If one traces back, nothing much had happened on the #FabInIndia efforts in the months that followed the Minister’s statements, that is, August to November of 2020, and the possible explanation is caution on spending brought in due to the first wave of Covid which peaked in India around September 2020.

The December 2020 move to invite proposals, though on the one hand could be seen as a continuation of the possible “buy more time” strategy from the government, at least there was something positive about it in terms of taking a consultative approach with the promise that government will finalise the incentive structure based on the demands detailed in the proposals, Even after all this, to now say that MeitY needs another six months, sounds quite dispiriting.

Perhaps this drag too is triggered by the second wave of Covid, either caution on the spending itself or on perception. However, further delays in finalising the scheme or the policy may cost India dearly because there is no guarantee that the investors or the tech firms who are part of the proposals will wait that long.

India should also look into how many other countries have moved quickly on finalising their incentives or facilitated companies from getting started. For example, Taiwan Semiconductor Manufacturing Company, Limited (TSMC) has confirmed that construction of its $12 billion, 5nm fab in Arizona, USA, has already started.
From the US government side, as per this report “US Commerce Secretary Gina Raimondo said on Monday a proposed $52 billion boost in US government funding for semiconductor production and research could result in seven to 10 new US factories”.
The South Korean government has recently announced that it will spend $450 billion over the next nine years to take the lead in the global semiconductor market.
The report in Bloomberg also said that Samsung is boosting its spending by 30 per cent to $151 billion through 2030 while SK Hynix is committing $97 billion to expansion at existing facilities in addition to its $106 billion plan for four new plants. They’ll be among 153 companies fueling the decade-long push.
The numbers may sound mind-boggling for the Indian reader, and once again, till anything actually happens in India, there is a frequent tendency to peddle negative aspects surrounding India’s efforts. At the risk of repeating this point, India need not aim to start big, when there is near zero ecosystems currently, one must start slow, aim small and then build upwards, and this point has been emphasised in multiple articles published in Swarajya – this and these to quote a few.
Perhaps there is something to study from what Japan is trying to do, going by the reports. There is this report that “Japan wants TSMC, Sony to build a 20 nanometre chip plant,” proving the point in earlier articles that there is still enough out there for fabs doing tech-nodes in the 20s of nm. For Analog chips, as explained here, 65nm tech-node itself would be good enough. In fact, it would perhaps be ideal for India to start with.
Another report says, “Japan has signed off on a $338 million semiconductor research project to develop cutting-edge chip technology in the country with the market-leading Taiwan Semiconductor Manufacturing Company (TSMC) … Around 20 Japanese companies will work with TSMC in the project worth 37 billion yen, with the government paying just over half of that”.

Going by the last part of that statement, the government of Japan is giving incentives worth more than 50 per cent—it may not be directly for a fab itself, but to develop advanced technology in the country, but remember that Japan already has fabs up to 40nm tech-node if I am not mistaken.

India too will have to give incentives of that order to first have fabs with mature tech-nodes come up, which will also be a capability demonstration both in terms of infrastructure as well as a talent pool, and then at some point start supporting the development of advanced technology nodes.

Can India expect the leading players (2020 market numbers are quoted in my recent article titled “Yeh Dil Maange Moore and Morris” here) – for example, pure-play foundries like TSMC or IDMs like Samsung or Intel to come? Great if they do, but it may be tough given that they have already been wooed by countries like the US, China, Japan and European Union. If there are good proposals involving what can be called the “second-tier” fabs, MeitY should approve the incentives for them.

Time is of the essence here. Any further delays in finalising the schemes and approving the incentives will run the risk of losing the chance of materialising the proposals that are apparently already sitting with MeitY. It will be my humble request to whomsoever matters, to not let a two-decade-old necessity slip between the cup and the lip.

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Indian Defense

INS Arihant’s Nuke-Capable K-4 Submarine-Launched Ballistic Missile ‘Ready To Roll’

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INS Arihant’s Nuke-Capable K-4 Submarine-Launched Ballistic Missile ‘Ready To Roll’


NEW DELHI: India tested its nuclear capable K-4 submarine-launched ballistic missile (SLBM), designed to have a strike range of 3,500 km, for the second time in six days on Friday. The missile test, as the one conducted on January 19, was undertaken from an undersea platform in the shape of a submersible pontoon off the coast of Andhra Pradesh according to a report by Rajat Pandit of TOI.

The solid-fuelled K-4 missile is being developed by DRDO to arm the country’s nuclear-powered submarines in the shape of INS Arihant and its under-development sister vessels. INS Arihant, which became fully operational in November 2018 to complete India’s nuclear triad, is currently armed with the much shorter K-15 missiles with a 750 km range.

“The K-4 is now virtually ready for its serial production to kick-off. The two tests have demonstrated its capability to emerge straight from underwater and undertake its parabolic trajectory,” said a source.

India has the land-based Agni missiles, with the over 5,000-km Agni-V inter-continental ballistic missile now in the process of being inducted, and fighter jets jury-rigged to deliver nuclear weapons. But INS Arihant gives the country’s deterrence posture much more credibility because nuclear-powered submarines armed with nuclear-tipped missiles are considered the most secure, survivable and potent platforms for retaliatory strikes.

Once the K-4 missiles are inducted, they will help India narrow the gap with countries like the US, Russia and China, which have over 5,000-km range SLBMs. The K-4 missiles are to be followed by the K-5 and K-6 missiles in the 5,000-6,000 km range class.

The 6,000-ton INS Arihant, which is propelled by an 83 MW pressurised light-water reactor at its core, in turn, is to be followed by INS Arighat, which was launched in 2017. The next generation of nuclear submarines, currently called S-4 and S-4*, will be much larger in size.





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After Upgradation, Sukhoi Su-30MKI Indigenisation To Reach 78%

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After Upgradation, Sukhoi Su-30MKI Indigenisation To Reach 78%


India has received clearance to upgrade 84 Sukhoi Su-30MKI fighter jets, which will result in 78% indigenization after the upgrade

In a significant step towards bolstering its military might with indigenously developed technology, India is poised to witness its Russian-origin Sukhoi Su-30MKI fighter jets evolve into a domestic platform. Speaking at a recent lecture.

The upgrade program is being led by Hindustan Aeronautics Limited (HAL) in partnership with the Indian Air Force and other partners. The upgrade is expected to cost US$7.5 billion.

The Defence Acquisition Council (DAC) granted Acceptance of Necessity (AoN) for the upgrade. The upgrade is part of India’s efforts to improve the capabilities of its primary fighter aircraft, it refers to as the “Super Sukhoi”.

This initiative is a part of a larger effort by the Indian Air Force to modernize its ageing fleet. Air Chief Marshal Chaudhari asserted the critical role of an offensive air force as demonstrated in current global conflicts and emphasized India’s move towards an indigenized arsenal. To this end, the IAF has been proactive, from upgrading its Mirage 2000 to enhancing its MiG-29 fleet.

In summary, the IAF’s commitment to updating their combat forces with the latest technology, including shifting to fifth-generation fighter jets, ensures operational preparedness and a strong deterrence capability. The gradual indigenization of its air fleet marks a pivotal shift in India’s defence landscape, reducing dependency on foreign imports and fostering technological sovereignty.





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Akash Weapon System Exports For The Armenian Armed Forces Gathers Pace

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Akash Weapon System Exports For The Armenian Armed Forces Gathers Pace


According to unconfirmed reports, Armenia is a top contender for an export order for Akash SAM system manufactured by Bharat Dynamics Limited (BDL).

While there is no official confirmation because of the sensitivities involved, documents suggest that the order for the same has already been placed the report further added.
There are nine countries, in turn, which have shown interest in the indigenously-developed Akash missile systems, which can intercept hostile aircraft, helicopters, drones and subsonic cruise missiles at a range of 25-km. They are Kenya, Philippines, Indonesia, UAE, Bahrain, Saudi Arabia, Egypt, Vietnam and Algeria reported TOI.

The Akash export version will also be slightly different from the one inducted by the armed forces. The 100-km range air-to-air Astra missiles, now entering production after successful trials from Sukhoi-30MKI fighters, also have “good export potential”, said sources.

Akash is a “tried, tested and successfully inducted systems”. Indian armed forces have ordered Akash systems worth Rs 24,000 crore over the years, and MoD inked a contract in Mar 2023 of over Rs 9,100 crores for improved Akash Weapon System

BDL is a government enterprise under the Ministry of Defence that was established in 1970. BDL manufactures surface-to-air missiles and delivers them to the Indian Army. BDL also offers its products for export.

Akash Weapon System

The AWS is a Short Range Surface to Air Missile (SRSAM) Air Defence System, indigenously designed and developed by Defence Research and Development Organisation (DRDO). In order to meet aerial threats, two additional Regiments of AWS with Upgradation are being procured for Indian Army for the Northern borders. Improved AWS has Seeker Technology, Reduced Foot Print, 360° Engagement Capability and improved environmental parameters.

The project will give a boost to the Indian missile manufacturing industry in particular and the indigenous defence manufacturing ecosystem as a whole. The project has overall indigenous content of 82% which will be increased to 93% by 2026-27.

The induction of the improved AWS into the Indian Army will increase India’s self-reliance in Short Range Missile capability. This project will play a role in boosting the overall economy by avoiding outgo of precious foreign exchange to other countries, increasing employment avenues in India and encouraging Indian MSMEs through components manufacturing. Around 60% of the project cost will be awarded to the private industry, including MSMEs, in maintaining the supply chain of the weapon system, thereby creating large scale of direct and indirect employment.





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