Why in News
Semiconductors underpin telecom, vehicles, defence, medical devices, power electronics and AI. India must build capability across design, fabrication, packaging, testing, materials and equipment rather than equating self-reliance with one fab.
Static Foundation
Fabs use deposition, lithography, etching and cleaning in controlled clean rooms and need reliable power, ultra-pure water, gases and chemicals. ATMP/OSAT are back-end assembly/testing activities, not wafer fabrication. Silicon carbide and gallium nitride serve specialised applications.
Prelims Focus
A fab makes circuits on wafers; packaging/testing turns dies into usable tested components. Design capability does not automatically imply fabrication capability.
Mains Perspective
Judge policy by ecosystem depth, domestic value addition, suppliers, skills, R&D and resilience. Incentives should be milestone-based and paired with water-energy planning.
Practice
MCQ: OSAT/ATMP is NOT identical to front-end fabrication; silicon carbide can serve power electronics; fabs need reliable utilities. Correct: statements 2 and 3.
Mains: Discuss ecosystem-led semiconductor capability.