What's Happening?
Indian chemical companies are making significant advancements in developing a domestic supply chain for semiconductor manufacturing. This move is part of India's broader strategy to establish itself as a key player in high-tech industries. The report by Bastion Research highlights the importance of ultra-high-purity chemicals in semiconductor wafer fabrication processes, such as etching and cleaning. Historically, India has relied on imports from countries like Japan and the United States for these specialized chemicals. However, companies like Tata Chemicals and Deepak Nitrite are now scaling up their production capabilities to meet the demand for semiconductor-grade materials. These efforts are crucial as India builds its semiconductor infrastructure, including fabrication units and outsourced semiconductor assembly and test (OSAT) facilities.
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Why It's Important?
The development of a domestic supply chain for semiconductor manufacturing chemicals is vital for India's self-reliance in the high-tech sector. By reducing dependency on imports, India can strengthen its position in the global semiconductor market, which is critical for various industries, including electronics and automotive. This move could lead to increased investment in India's semiconductor infrastructure, creating job opportunities and boosting the economy. Additionally, it aligns with the government's 'Make in India' initiative, promoting local manufacturing and innovation. The success of these efforts could position India as a competitive player in the global semiconductor industry, attracting further international partnerships and collaborations.
