Learning from the CHIPS Act of the US

Provisions of the CHIPS Act

India’s framework

Lessons that can be learned

1.

Four separate funds have been created for the implementation of the act:

1. 1. 1. Department of commerce is the lead agency administering $50 billion CHIPS fund for accelerating semiconductor research and manufacturing.
      2. Department of Defence is allocated with $2 billion for defence-specific technologies.
      3. Department of State allocated $0.5 billion to coordinate with foreign partners on semiconductor supply chain management.
      4. National science Foundation allocated $0.2 billion to foster growth of semiconductor workforce.

India’s semiconductor policy is managed by MeiTY directly or indirectly.

1 . An independent division called India Semiconductor Mission that operates within a non-profit company set up by MeiTY handles schemes for manufacturing, displays and compound semiconductors.

2. The ISM committee comprises largely of MeiTY bureaucrats.

3. C-DAC, an R&D organisation for chip designing operates under MeiTY.

Needs a whole-of-government approach

2.

National Semiconductor technology Centre (NSTC) collaborates with industry and educational institutions for workforce development plans.

MeiTY has rolled out Chips2 Startup (C2S) programme aimed to collaborate with over 100 universities and colleges.

In India, private training centres are preparing the chip designers outside the conventional university learning programmes. Therefore, C2S has to certify good programmes of universities and private training institutes rather than running them.

3.

CHIPS Program Office (CPO) lays down guidelines to assess the financial viability of a project.

India also has similar provisions to assess the financial viability of a project.

India lacks in transparency. Therefore, regular monthly progress reports on the semiconductor programme needs to be published to instil expectations and reassurance in India’s plans.

4.

Dept. of Commerce invests $11 billion for future research.

For instance, given that downscaling of transistors is impossible, focusing on advancing packaging for a multidimensional arrangement of semiconductors in a single substrate, all in one package is a viable strategy to excel in Semiconductors in the future. Hence, a National Advanced Packaging Manufacturing Program has been rolled out by the government.

The investments in R&D for future research has been low in India.

Adopt strategies to invest in research on future technologies.