2. Consumer Price Index

• The Consumer Price Index (CPI) is a measure of the change in prices of a basket of goods and services that are commonly purchased by consumers. It is the most commonly used measure of inflation.
• The CPI is calculated by comparing the prices of the goods and services in the basket in a particular period to those of the same in a base period.
• The base period is usually the previous year's corresponding period. The difference in prices is expressed as a percentage, and this is the CPI inflation rate.
• The CPI is calculated for eight different categories of goods and services Food and beverages, Housing, Clothing and footwear, Transport, Health, Education, Communication, Recreation and Miscellaneous goods and services.
• The weights of each category in the CPI are determined by the expenditure patterns of urban households. For example, food and beverages have the highest weight in the CPI, followed by housing and transport.
• The CPI inflation rate is an important indicator of the cost of living.
• It is used by the government to set monetary policy and by businesses to make pricing decisions.

3. Wholesale Price Index

• The Wholesale Price Index (WPI) is a measure of the change in prices of goods and services at the wholesale level.
• It is calculated by comparing the prices of a basket of goods and services in a particular period to those of the same in a base period.
• The base period is usually the previous year's corresponding period. The difference in prices is expressed as a percentage, and this is the WPI inflation rate.
• The WPI is calculated for 67 groups of commodities, which are further divided into 225 subgroups.
• The weights of each group and subgroup in the WPI are determined by the value of the goods and services produced in each group and subgroup.
• The WPI inflation rate is an important indicator of inflation at the wholesale level.
• It is used by businesses to make pricing decisions and by the government to set monetary policy.

4. Findings of the Report

4.1. Food inflation

• Food inflation in India remained high in August, at 9.94%. This was driven by rising prices of essential food items, such as cereals, pulses, vegetables, and oils.
• Eleven of the 12 items on the heavyweight food and beverages group of the CPI logged price increases, with oils and fats, the sole item logging a year-on-year decline in prices, posting its first sequential increase in nine months.
• Vegetables provided some relief, with tomatoes leading an appreciable month-on-month deflation of 5.88% in the 19-member basket.
• However, the cooking staples of potatoes and onions were among the seven items that continued to log sequential inflation (2.3% and 12.3%, respectively).

4.2. Monsoon deficit and rising crude oil prices

• The near-term inflation outlook is also made more uncertain by other factors, including a distinct deficit in monsoon rainfall.
• Besides the overall 10% shortfall, sharp regional and temporal anomalies in rain distribution have impacted either the sowing or the quality of produce of several farm items.
• Kharif's sowing of pulses had, as of September 8, recorded an 8.6% shortfall compared with the year-earlier period.
• Another inflation driver, crude oil, has also seen a steady rise in prices as the output cuts by major oil producers of the OPEC+ grouping start to bite.
• The price of India's crude basket had, as of September 12, climbed 7.2% from the average in August to $92.65/barrel, according to official data.

• For the RBI, the latest inflation data further roils its interest rate calculus.
• Unless CPI inflation decelerates by an incredible 250 basis points in September to a 4.33% pace, price gains are certain to substantially overshoot the monetary authority's 6.2% forecast for the July-September quarter, leaving it with few real options to achieve its medium-term price stability goal of 4% inflation.
• As the RBI has been at pains to stress, failure to anchor inflation expectations risks hurting growth.

5. About the sticky Consumer Price Index (CPI)

• The sticky Consumer Price Index (CPI) is a subset of the CPI that includes goods and services that change prices relatively infrequently.
• These goods and services are thought to incorporate expectations about future inflation to a greater degree than prices that change more frequently.
• Some of the items included in the sticky CPI are Rent, Housing costs, Utilities, Education, Healthcare, Transportation, Household furnishings and appliances, Personal insurance, Recreation, and Miscellaneous goods and services. 
• The sticky CPI is often used by economists to measure inflation expectations.
• This is because prices of sticky goods and services are less likely to be affected by short-term changes in supply and demand, and are therefore more likely to reflect changes in inflation expectations.
• The sticky CPI is also used by central banks to set monetary policy.
• This is because the central bank wants to make sure that inflation expectations are anchored at a low level.
• If inflation expectations start to rise, the central bank may raise interest rates to bring them back down.

6. How India’s retail inflation is measured?

• India's retail inflation is measured by the Consumer Price Index (CPI), a basket of goods and services commonly purchased by urban households.
• The CPI is calculated by the National Statistical Office (NSO) every month.
• The CPI is calculated by comparing the prices of the goods and services in the basket in a particular month to those of the same in a base month.
• The base month is usually the previous year's corresponding month. The difference in prices is expressed as a percentage, and this is the CPI inflation rate.
• The CPI is calculated for eight different categories of goods and services, Food and beverages, Housing, Clothing and footwear, Transport, Health, Education, Communication, Recreation and Miscellaneous goods and services.
• The weights of each category in the CPI are determined by the expenditure patterns of urban households. For example, food and beverages have the highest weight in the CPI, followed by housing and transport.
• The CPI inflation rate is an important indicator of the cost of living in India.
• It is used by the government to set monetary policy and by businesses to make pricing decisions.

7. Calculation of Inflation

• Inflation is the rate at which the prices of goods and services increase over time.
• It is calculated by comparing the prices of a basket of goods and services in a particular period to the prices of the same basket of goods and services in a base period.
• The base period is usually the previous year's corresponding period. The difference in prices is expressed as a percentage, and this is the inflation rate.

There are two main ways to calculate inflation

The PPI is calculated by the following formula:

PPI = (Cost of a basket of goods and services at the wholesale level in the current period / Cost of a basket of goods and services at the wholesale level in the base period) * 100

 

Source: The Hindu

 

 

KEN-BETWA RIVER LINKING PROJECT

 

1. Context

Three cases have been filed in Madhya Pradesh’s Chhatarpur against a group of people after a protest they were carrying out against the Ken-Betwa river-linking project and the arrest of a local activist turned violent

2. About Ken-Betwa Link Project

• It is the first project under the National Perspective Plan for the interlinking of rivers.
• It envisages transferring water from the Ken river to the Betwa river, both tributaries of the Yamuna.
• The Ken-Betwa Link Canal will be 221 km long, including a 2 km long tunnel.
• The project has two phases with mainly four components.
• Phase-I will involve one of the components Daudhan Dam complex and is subsidiary units such as Low-Level Tunnel, High-Level Tunnel, Ken-Betwa Link Canal, and powerhouses.
• Phase II will involve three components Lower Orr Dam, Bina Complex Project, and Kotha Barrage.

According to the Jal Shakti Ministry, the project is expected to provide annual irrigation of 10.62 lakh hectares, supply drinking water to about 62 lakh people, and generate 103 MW of hydropower and 27 MW of solar power.

 

• As per an official statement issued after the Cabinet approval on Wednesday, the total cost of the Ken-Betwa link project has been assessed at Rs.44,605 crores at 2020-21 price levels.
• The Union Cabinet has approved central support of Rs.39,317 crores for the project, covering a grant of Rs.36,290 crores and a loan of Rs.3,027 crores.
• The statement further said that the project is proposed to be implemented in 8 years with “state-of-the-art technology.

3. Special Purpose Vehicle (SPV)

• A Special Purpose Vehicle (SPV) for the project is called Ken-Betwa Link Project Authority (KBLPA) will be set up to implement the project.
• The Centre has set in motion the process of creating the National Interlinking of Rivers Authority (NIRA) is an independent autonomous body for planning, investigation, financing, and implementation of the interlinking of river (ILR) projects in the country.
• The NIRA will have the power to set up SPV for individual link projects.

 

Ken-Betwa project agreement  On March 22, 2021, a memorandum of agreement was signed between the Ministry of Jal Shakti and the governments of Madhya Pradesh and Uttar Pradesh to implement the Ken-Betwa Link Project (KBLP).

4. Conceptualiztion of the project

• The idea of linking Ken with Betwa got a major push in August 2005, when a tripartite memorandum of understanding for the preparation of a detailed project report (DPR) was signed between the Centre and the two states.
• In 2008, the Centre declared KBLP a National Project. Later, it was included as part of the Prime Minister’s package for the development of the drought-prone Bundelkhand region.
• In April 2009, it was decided that the DPR will be prepared in two phases.
• In 2018, a comprehensive DPR including phase-I, II, and additional areas proposed by Madhya Pradesh was also prepared.
• It was sent to Uttar Pradesh, Madhya Pradesh, and the Central Water Commission in October 2018.
• The memorandum of agreement was signed to implement the project.

5. Benefits from Project

• The project lies in Bundelkhand, a drought-prone region, which spreads across 13 districts of Uttar Pradesh and Madhya Pradesh.

According to the Jal Shakti Ministry, the project will be of immense benefit to the water-starved region, especially the districts of Panna, Tikamgarh, Chhatarpur, Sagar, Damoh, Datia, Vidisha, Shivpuri and Raisen of Madhya Pradesh, and Banda, Mahoba, Jhansi and Lalitpur of Uttar Pradesh.

• It will pave the way for more interlinking of river projects to ensure that scarcity of water does not become an inhibitor for development in the country.

 

Image source: The Indian Express

 

6. The Panna Tiger Reserve

• According to the National Water Development Agency under the Jal Shakti Ministry, the Daudhan dam, to be built on the Ken river, will be 77 meters high and its gross capacity will be 2,853 million cubic meters.
• According to the NWDA, the reservoir of Daudhan dam will involve “a submergence of 9000 ha area, out of which 5803 ha comes under Panna Tiger Reserve.
• The latter includes 4141 ha of forest area which is about 7.6% of the total Panna Tiger Reserve area”.
• To mitigate adverse impacts on Panna Tiger Reserve, as decided by NTCA,
• Landscape Management Plan to decide mitigation strategy concerning KenBetwa Link entrusted to Wildlife Institute of India, Dehradun, and is in its final stage.
• In addition to above three wildlife sanctuaries, viz Nauradehi, Rani Durgawati of MP and Ranipur WLF of UP are planned to be integrated with PTR for the proper conservation of Wild Life under Tiger Reserve.

7. The concept of river linking in India

• In the past, several river-linking projects have been taken up.
• For instance, the Periyar Project, under which the transfer of water from the Periyar basin to the Vaigai basin was envisaged, was commissioned in 1895.
• Other projects such as Parambikulam Aliyar, Kurnool Cudappah Canal, Telugu Ganga Project, and Ravi-Beas-Sutlej too were undertaken.
• In the 1970s, the idea of transferring surplus water from a river to a water-deficit area was mooted by the then Union Irrigation Minister Dr. K L Rao.
• Himself an engineer, he suggested the construction of a National Water Grid for transferring water from water-rich areas to water-deficit areas.
• Later, Captain Dinshaw J Dastoor proposed a Garland Canal to redistribute the water from one area to another.
• However, the government did not pursue these two ideas further.
• It was not until August 1980 that the Ministry of Irrigation prepared a National Perspective Plan for water resources development envisaging interbasin water transfer.
• The NPP comprised two components: Himalayan Rivers Development; and Peninsular Rivers Development. Based on the NPP, the National Water Development Agency (NWDA) identified 30 river links 16 under the Peninsular component and 14 under the Himalayan Component.
• Later, the river-linking idea was revived during the Atal Bihari Vajpayee regime.
• The Ken-Betwa Link Project is one of the 16 projects under the peninsular component.

8. Clearances for a river-linking project

Various types of clearances are required, such as techno-economic clearance (given by the Central Water Commission);

1. Forest clearance, and environmental clearance (Ministry of Environment & Forests);
2. Resettlement and rehabilitation plan of tribal population (Ministry of Tribal Affairs) and
3. Wildlife clearance (Central Empowered Committee).

For Prelims & Mains

For Prelims: river-linking projects, Ken-Betwa Link Project, Himalayan Rivers Development; and Peninsular Rivers Development, National Water Development Agency, Jal Shakti Ministry, The Panna Tiger Reserve, NitiAayog. Yamuna river, Ken-Betwa Link Project Authority (KBLPA),  For Mains:  1. Discuss the significance and hurdles of the Ken-Betwa River Link Project (250 Words) 2. What is River linking and discuss the significance of the River linking system in India (250 Words)

 

Source: PIB and The Indian Express 

 

 

RIGHT TO INFORMATION ACT

 

1. Context

The Supreme Court on Tuesday mooted whether the Chairpersons of Human Rights Commissions of States with low traffic of Right to Information (RTI) appeals could be given additional responsibility of acting as Chief Information Commissioners (CICs) till there is an increase in workload

2. The Right to Information (RTI) Act:

• The Right to Information (RTI) Act is a landmark legislation enacted in India in 2005.
• It empowers citizens to access information held by public authorities and promotes transparency and accountability in government functioning.

Here are key points about the RTI Act:

Objective

The primary objective of the RTI Act is to provide citizens with the legal right to request and receive information from government agencies and departments.

Applicability

The Act applies to all government bodies at the central, state, and local levels, including ministries, departments, public sector undertakings, and even non-governmental organizations receiving government funding.

Information Disclosure

It mandates government bodies to proactively disclose certain categories of information to the public, reducing the need for citizens to file RTI applications for routine information.

Request Process

• Citizens can file RTI applications in writing, seeking specific information. They need to pay a nominal fee with the application.
• Information must be provided within 30 days (or 48 hours for information concerning life and liberty), failing which authorities must explain the delay.

Exemptions

The Act specifies certain categories of information that are exempt from disclosure, primarily to protect national security, privacy, and sovereignty.

Public Interest Override

Even if the information falls under exempt categories, it must still be disclosed if there is an overriding public interest.

Promoting Accountability

• The RTI Act is a powerful tool for holding public officials accountable for their actions and decisions.
• It has been instrumental in exposing corruption, inefficiency, and human rights violations.

Challenges and Amendments:

Over the years, there have been concerns about the Act's effectiveness due to delays, procedural hurdles, and some amendments that activists argue weaken its provisions.

Impact

• The RTI Act has empowered citizens to participate in governance, making the government more transparent and accountable.
• It has been hailed as a significant step toward strengthening democracy in India.

Role of Information Commissions

Information Commissions at the central and state levels are responsible for hearing appeals and resolving disputes related to RTI applications.

3. RTI Act Amendment:

• The Digital Personal Data Protection Act, of 2023, amended the RTI Act.
• It changed the prohibition on disclosing personal data from qualified to the total.
• NCPRI opposed this change, as it hinders social audits and may protect powerful officials.
• The Right to Information (Amendment) Act, of 2019, gave Union Government unilateral power over information commissioners' tenure and salaries.
• This raised concerns about their independence and effectiveness.

4. Undermining the RTI Act:

Dependence on Subordinate Rules:

• The RTI Act's effectiveness relies on subordinate rules set by Union and State Governments.
• States have autonomy in determining payment methods for RTI applications, causing disparities.

Payment Method Variations

• Inconsistencies exist in payment methods across states.
• Example: Tamil Nadu doesn't accept Indian Postal Orders (IPOs), a convenient payment method.
• Court fee stamps and demand drafts may be less accessible and burdensome alternatives.

Tardy Appointments to Information Commissions

• Delays in appointing members to Information Commissions, like the Central Information Commission (CIC) and State Information Commissions (SICs), erode confidence.
• Appeals can languish for months or years without resolution.
• Jharkhand SIC, for instance, lacked commissioners since May 2020, rendering the appeals process ineffective.

5. Online RTIs:

• Online RTI applications ease accessibility by eliminating the need for uncommon financial instruments.
• Payment via UPI simplifies the process.
• Many Indian states lack online RTI portals, limiting access for citizens.
• Even when available, some state government bodies may not be registered on these portals.
• The Union Government's RTI portal, launched in 2013, faces usability issues.
• Account creation, which streamlined the application process, has been removed.
• Users must now enter personal details for each application.
• Past applicant data has experienced glitches, with applications disappearing and later being restored.

6. Challenges and Dissatisfaction:

• Dissatisfaction with the RTI Act's effectiveness is increasing at a fundamental level.
• More first appeals are being filed, indicating public dissatisfaction with the information provided by public officials.
• The RTI Act faces structural problems related to institutions and websites.
• These issues hinder citizens' ability to conveniently access information and file requests.
• Activists highlight that the weakening of the RTI Act isn't limited to changes in the law's text.
• It stems from various government institutions' ways of discharging duties, narrowing avenues for information access, and understaffed appellate bodies.

For Prelims: Right to Information Act, 2005, Central Information Commission (CIC), State Information Commissions (SICs), Indian Postal Orders (IPOs), Digital Personal Data Protection Act, of 2023. For Mains: 1. Examine the impact of recent amendments to the Right to Information (RTI) Act on its core principles of transparency and accountability. How can the Act strike a balance between protecting sensitive information and ensuring citizens' access to government-held data?

 

Previous year Question 1. Which of the following is related to the Right to Information Act, of 2005? (UPPSC 2015) A. Lily Thomas v/s Union of India B. Nandini Sundar v/s State of Chhattisgarh C. Namit Sharma v/s Union of India D. None of the above Answer: C

Source: The Hindu

 

NO CONFIDENCE MOTION

 

1. Context

Opposition parties belonging to the INDIA bloc are considering moving a no-confidence motion against Lok Sabha Speaker Om Birla, accusing him of acting in a partisan manner and denying Leader of the Opposition Rahul Gandhi the opportunity to speak during the debate on the Motions of Thanks to the President for her Address to the joint sitting.

2. No confidence motion

• A no-confidence motion, also known as a motion of no confidence or a vote of no confidence, is a significant parliamentary mechanism used in democratic systems to express the legislature's lack of confidence in the government or a specific member of the government.
• A no-confidence motion can be moved only in the Lok Sabha and by any member of the House.
• The member has to give a written notice of the motion before 10 am and at least 50 members have to accept the motion. The Speaker will then decide the date for the discussion of the motion.
• It serves as a crucial tool for holding elected officials accountable for their actions and decisions.

3. Initiating a No Confidence Motion

• The process of initiating a no-confidence motion typically begins with the opposition parties.
• They may present a formal proposal in the legislative chamber, backed by a specific number of lawmakers' signatures.
• In some cases, dissatisfied members from the ruling party might also initiate such a motion.
• The primary purpose is to ascertain whether the government or a particular minister still commands the majority support in the legislature.

4. Debate and Voting Process

• Once the no-confidence motion is tabled, a debate follows, during which lawmakers discuss the reasons for their lack of confidence in the government's performance.
• This debate allows the government to present its side and attempt to persuade lawmakers to vote in their favor.
• Following the debate, a vote is held, and if the motion garners a majority of votes against the government or minister, it is considered successful.

5. Impact on Governance

• A successful no-confidence motion carries significant consequences.
• In some parliamentary systems, it leads to the resignation of the government, triggering the dissolution of the parliament and necessitating new elections.
• Alternatively, the opposition parties may be invited to form a new government if they can demonstrate sufficient support.

6. Responsible Use and Political Stability:

• While the no-confidence motion is a powerful democratic tool, its frequent or frivolous use can create political instability and hinder effective governance.
• Therefore, lawmakers must exercise discretion, focusing on critical issues and genuine concerns.
• Responsible use of the no-confidence motion ensures that the government remains accountable to the people and that the country's stability is maintained.

7. Significance of No confidence motion

The no-confidence motion holds significant importance in a democratic system, and its significance lies in the following aspects:

• Government Accountability: The no-confidence motion serves as a powerful mechanism to hold the government accountable for its actions, decisions, and policies. It allows the legislature to express its lack of confidence in the government's performance, ensuring that the executive branch remains answerable to the elected representatives and the public.
• Checks and Balances: In a democratic setup, the separation of powers is vital to prevent the concentration of authority. The no-confidence motion is one of the key instruments that the legislature can employ to check the powers of the government. It helps maintain a system of checks and balances, ensuring that no single branch of government becomes too dominant.
• Democratic Oversight: The no-confidence motion reinforces the principle of democratic oversight. It enables the elected representatives to actively monitor the government's performance and initiate action if they believe the government is not living up to its mandate or is engaged in misconduct.
• Crisis Resolution: In times of political crises or governance failures, the no-confidence motion can be used as a means to address the situation. If the government is unable to provide effective leadership or address pressing issues, the legislature can signal its lack of confidence, prompting necessary changes in the government or leading to new elections.
• Encourages Responsible Governance: The possibility of facing a no-confidence motion encourages the government to govern responsibly and make decisions that are in the best interest of the people. It acts as a motivator for the government to deliver on its promises and avoid policies that may be unpopular with the majority.
• Promotes Public Debate: The no-confidence motion triggers debates and discussions in the legislature, providing a platform for lawmakers to express their views and concerns openly. This fosters a healthy democratic environment where different perspectives are heard and considered.

8. Previous instances of No-confidence motion

• Since Independence, 27 no-confidence motions have been moved in Lok Sabha.
• The first no-confidence motion was moved against Prime Minister Jawaharlal Nehru by Congress leader Acharya Kripalani in August 1963, immediately after losing to China in the 1962 war. The motion, however, was defeated.
• Indira Gandhi as Prime Minister faced the most number of no-confidence motions - 15. She survived each of the 15 floor tests. Former West Bengal CM Jyotirmoy Basu of the CPI(M) has moved four no-confidence motions.
• Narasimha Rao had to face three no-confidence motions, Morarji Desai two, and Jawaharlal Nehru, Rajiv Gandhi, Atal Bihari Vajpayee, and Narendra Modi have all faced one each.
• The last no-confidence motion was in 2003 when the then Congress President Sonia Gandhi moved the motion against Vajpayee.
• The duration of the longest debate on a no-confidence motion was 24.34 hours against Lal Bahadur Shastri, who has had to prove the majority of the House thrice.
• Most no-confidence motions have been defeated except in 1979 when Prime Minister Morarji Desai had to quit and in 1999 when the Vajpayee government lost power after their ally AIADMK pulled out of the coalition.
• In 2018, the Narendra Modi-led NDA government survived the no-confidence motion in the Lok Sabha by 195 votes. While 135 members supported the motion, 330 MPs rejected it.

For Prelims: No-confidence motion, Lok Sabha, Checks and Balances, Indian National Developmental Inclusive Alliance (INDIA). For Mains: 1. Discuss the concept of a "No Confidence Motion" in a parliamentary democracy. Explain its purpose and significance in holding the government accountable for its actions and decisions. (250 words).

 

Previous year Question 1. Consider the following statements regarding a No-Confidence Motion in India: (UPSC 2014) 1. There is no mention of a No-Confidence Motion in the Constitution of India. 2. A Motion of No-Confidence can be introduced in the Lok Sabha only Which of the statements given above is/are correct? A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2 Answer: C

 Source: The Hindustan Times

 

 

SEMICONDUCTOR

 

 

 

1. Context

 

The India Semiconductor Mission 2.0 (ISM 2.0) will prioritise indigenous chip design, their productisation, attracting ecosystem partners and development of talents, Union Minister Ashwini Vaishnaw said on Saturday.

 

2. What are Semiconductors?

 

Semiconductors constitute a unique category of materials exhibiting electrical characteristics that blend those of conductors and insulators. Analogous to a faucet regulating water flow, semiconductors offer precise control over electric currents.

Among semiconductors, the transistor holds paramount importance. In the early stages of modern electronics, integrated circuits featured a mere four transistors, enabling basic arithmetic operations. Presently, single chips accommodate billions of transistors.

The intricate process of integrating numerous transistors onto a minuscule chip, comparable in size to a fingernail, demands meticulous precision akin to dividing a strand of human hair into a thousand segments, each with specific width, and further subdividing each segment into a hundred parts. Consequently, semiconductor fabrication necessitates cutting-edge technological and scientific expertise

3. How are Semiconductors made?

• The process commences with an engineer meticulously selecting a silicon wafer as the base upon which the semiconductor will be constructed.
• A dedicated team subjects the silicon, derived from sand, to an elaborate purification procedure to isolate it from other substances, resulting in an ultra-pure wafer with impurity levels as minimal as a few parts per billion.
• This proportion is akin to an error margin of merely one centimeter when measuring the Earth's diameter.
• Subsequently, the photolithography process ensues—a pivotal stage wherein the circuit pattern is etched onto the wafer.
• The wafer is coated with a light-sensitive substance known as a photoresist. A mask is then positioned in front of the wafer, and light is directed onto it. The mask features small apertures corresponding to the circuit pattern.
• Light passes through these apertures, eroding the underlying sections of the photoresist. Consequently, the photoresist on the wafer adopts the configuration of the transistor circuits.
• After photolithography, engineers employ chemical and/or physical methods to eliminate the unetched portions of the photoresist, leaving the circuit's framework on the silicon substrate intact.
• Next, they introduce impurities into specific areas of the semiconductor—a process known as doping—to modify its electrical properties deliberately.
• Thin layers of materials such as metals or insulators are then deposited onto the wafer's surface to establish electrical connections or insulate components.
• Subsequently, the resultant product undergoes packaging—individual chips are segregated, encapsulated, and subjected to testing to ensure functionality and reliability—before integration into the electronic device

4. Semiconductor Fabrication

 

• Every stage of semiconductor production necessitates exceptionally precise techniques and draws upon a variety of scientific principles. For instance, in crafting cutting-edge transistors, the photolithography process demands a light source emitting electromagnetic radiation with a wavelength of 13.5 nm.
• To achieve this, the High NA EUV machine developed by the Dutch company ASML employs a unique method: a cannon propels a 50-micrometer droplet of liquid tin at 300 km/hr through a vacuum chamber, where laser beams impart sufficient energy to generate a plasma emitting the required wavelength of radiation.
• Semiconductor manufacturing is characterized by specialization, resulting in an oligopoly dominated by companies specializing in specific areas. ASML, originally a spin-off of Philips, holds a monopoly on photolithography machines essential for cutting-edge semiconductor production worldwide.
• In the realm of software tools for circuit design, American firms Synopsys and Cadence reign supreme, while Japan's Shin Etsu leads in silicon wafer production.
• Taiwan's TSMC leads the market in fabrication, utilizing equipment from U.S.-based Applied Materials and Lam Research. The bulk of intellectual property rights are owned by the British company Arm.
• India plays a significant role in chip design, particularly centered in Bengaluru. However, ownership of most intellectual property rights necessary for executing these designs lies with parent companies or with Arm, relegating India to a consumer rather than a proprietor of these products.
• This dynamic mirrors the business model of McDonald's: while India may host numerous McDonald's outlets, the recipe and supply chain are controlled by a parent company headquartered elsewhere

5. Benefits of Semiconductors

 

• Smartphones and computers epitomize the apex of semiconductor technology, yet the impact of semiconductors permeates nearly every aspect of daily life. These components power not only the sophisticated functions of electronic devices but also enable the operation of "smart" air conditioners for temperature regulation and facilitate space telescopes in capturing both captivating and scientifically significant images from the depths of the universe, among various other applications.
• The solutions to many of the pivotal challenges of the 21st century, encompassing realms such as artificial intelligence, electric vehicles, space exploration, robotics, personalized healthcare, and environmental monitoring, hinge upon a reliable supply of advanced semiconductors. This underscores their critical importance for humanity's survival and pursuit of fairness, sustainability, and justice.
• The establishments dedicated to semiconductor technology not only foster innovation and generate high-income employment opportunities but also cultivate the potential for startups specializing in cutting-edge technologies.
• Furthermore, they contribute to and benefit from advancements in fields such as materials science, computer engineering, big data, optics, chemical engineering, and chip design, among others.
• Given their significance in sectors like defense and automotive industries, semiconductors have become focal points of geopolitical interest. Countries vie to establish semiconductor fabrication facilities domestically, offering various incentives to attract industry leaders. Notably, the United States has imposed sanctions on Chinese technology companies, including bans on acquiring advanced ASML equipment and high-end design software, citing similar reasons.
• In response, China has intensified efforts to bolster its domestic semiconductor production capabilities to meet internal demand.
• India, on the other hand, has been leveraging its expertise in design to establish semiconductor manufacturing plants domestically. It is hoped that this strategic initiative, coupled with the potential for continued innovation and collaboration, will enhance India's position in the semiconductor industry

6. Way Forward

 

While the physical realm of human activity contains an array of languages, the digital realm is founded on just one fundamental binary language: the 1s and 0s, also called the bits of data. Computers represent these bits as electrical signals and this forms the foundation of modern computing, communication, social media, robotics, and artificial intelligence. The 0s and 1s constantly shape the way we interact with technology and with each other — and the beating heart of this binary revolution is the semiconductor device

 

 

For Prelims: Semiconductor, intellectual property rights, India Semiconductor Mission, Semicon India Program For Mains:  1. Discuss the potential of India's semiconductor industry to reduce the country's dependence on imported chips and contribute to the "Make in India" initiative. (250 Words)

 

Source: The Hindu