It was a sunny day in Bangalore, India and the CEO of a leading semiconductor manufacturing company was in a meeting with a group of government officials. They were discussing the importance of semiconductors in India's national security and the need for indigenous development of this critical component. The CEO shared how his company had been making significant investments in R&D, talent development, and collaborations with academic institutions to drive innovation in semiconductors. He also spoke about the need for a strong regulatory framework to encourage domestic manufacturing and reduce dependence on imports.
This anecdote highlights the crucial role that semiconductors play in India's security charter. Semiconductors are the building blocks of electronics and are essential for a range of applications, including defense and security. India's growing defense needs have led to an increase in demand for semiconductor-based products such as sensors, radars, and communication systems. India's dependence on imports for semiconductors makes it vulnerable to supply chain disruptions and compromises in national security.
According to a report by the Indian Semiconductor Association, India's semiconductor market is projected to grow at a CAGR of 10.1% from 2019 to 2025. This growth is driven by various factors including the rise of IoT, AI, and 5G technology, and the government's push for digital transformation. In 2020, the government announced a production-linked incentive scheme for electronics and semiconductor manufacturing with an outlay of INR 40,995 crores ($5.54 billion). This scheme aims to boost domestic manufacturing and reduce the dependence on imports.
Currently, India imports over 60% of its semiconductor requirements. This leaves it at the mercy of global supply chains, which have been disrupted due to the ongoing pandemic and geopolitical tensions. For instance, in 2020, the US government imposed sanctions on China's largest semiconductor manufacturer, SMIC, which affected several Indian companies that sourced semiconductors from SMIC. This incident highlighted the need for India to reduce its reliance on imports and develop a robust domestic semiconductor ecosystem.
The critical role of semiconductors in India's security and the need for domestic manufacturing
The importance of semiconductors in national security is not just a theoretical concept but has real-life implications. In 2019, a group of hackers targeted an Indian defense organization and stole critical data related to defense and aerospace technologies. The attackers used a combination of social engineering and technical skills to exploit vulnerabilities in the organization's systems. One of the vulnerabilities was related to a third-party software that used outdated and unpatched versions of semiconductors. This incident highlights the need for ensuring the security of semiconductors at all levels.
semiconductors, national security, domestic manufacturing, IoT, 5G technology
Technology and Security
Curated by Team Akash.Mittal.Blog
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