India's most comprehensive software exporter, Tata Consultancy Services (TCS), recently launched new Robotic Process Automation (RPA) solutions to drive greater precision and better conditions in chip manufacturing and help semiconductor companies with digital transformation.
TCS has created a unique Semiconductor Center of Excellence (CoE) to design and create closed-loop systems that connect the power of analytics and informatization to reimagine the semiconductor manufacturing (fab) value chain. Experts at this CoE are creating solutions that will enable production robots, powered by intelligent algorithms, to respond to different situations to improve quality and efficiency across the entire semiconductor manufacturing method.
The TCS Robotic Data Factory solution, built on Blue Prism's Connected-RPA platform, will leverage insights derived from factory production data to initiate an appropriate business workflow, urgently reducing response time to irregularities in semiconductor production.
“We are showcasing our deep contextual knowledge gained from engagements in the semiconductor business and leveraging the power of robotic automation to streamline focus business processes using fabulous data effectively. This will significantly boost our consumers' Business 4.0 transformation efforts with faster product introduction and improved quality,” said V Rajanna, Global Head, Technology Business Unit, TCS. “Our new CoE re-emphasizes our commitment to investing in establishing new digital paradigms for the semiconductor industry.”
“By connecting TCS’ expertise in the semiconductor industry and our Connected-RPA platform, we are able to change operations and accelerate product distribution in one of the world’s most ambitious and vital industries,” said Chad Gailey, vice president of Channel Sales and Global Service Providers, Blue Prism Americas. “We are encouraging disruption and innovation by driving unbeatable value advice for deploying intelligent automation solutions.”
The semiconductor market is undergoing immense changes at different speeds, driven by big data, hyperconnectivity and the adoption of the Internet of Things. Semiconductor companies are adopting aggressive strategies to enable accelerated innovation, product line expansion and normal market focus, with pace and agility.
Semiconductor chip manufacturing
While India has done well in chip design and electronics manufacturing, there have long been difficulties in setting up semiconductor wafer fabrication sets (FAB).
The digital age has led the world to consume electronic products on an unparalleled scale. There will be global shipments of devices – PCs, mobile phones and tablets – totaling 2.2 billion units in 2019. All of these devices require semiconductor chips to function, and it is clear that the economies of extensive production of these chips have benefited most . in terms of improving its GDP. USA, Korea, Japan, China, Singapore, etc. they are all major producers of semiconductor chips and also have a powerful position in the global economy.
Although India has done very well in terms of chip design and electronics manufacturing, there have long been difficulties in setting up semiconductor wafer manufacturing units (FAB) in India. This is due to several factors, including not only the loss of infrastructure and skilled labor in the country. It is also a challenge to compete with neighboring countries such as China and Vietnam, which have been popular destinations for global chipmakers due to their more reliable cost-effectiveness. It is for these purposes that Intel declared in 2014 that it had no interest in starting production in India.
There have been efforts to establish semiconductor factory assemblies here by private companies in the country:
Hindustan Semiconductor Manufacturing Corporation (HSMC), a collection of companies that included ST Microelectronics and Silterra Malaysia, intended to start a chip factory in Gujarat, a project worth ₹30,000 crore. The government in 2019 withdrew the letter of intent granted to HSMC and now there is no such recommendation from any private company to start such a project. The reason was that the consortium was unable to present the documents required by the government for the implementation of the Semiconductor Wafer Manufacturing (FAB) unit. HSMC was backed by AMD and also won $700 million in funding from Mumbai-based Next Orbit Ventures.
Then there was another cooperative led by Jaiprakash Associates, which partnered with IBM and Tower Semiconductor of Israel to start chip manufacturing in UP. In 2016, debt-laden Jaiprakash (JP) Associates crawled out of ₹34,000 crore. If the only two private sector consortiums authorized by the government to build large-scale chip production in the country were unable to make this happen, then it is undoubtedly a poor indicator of why India is reeling in the space.
Valuing the sector
The government, in an attempt to work towards this initiative, has announced several subsidies and incentives for setting up electronics manufacturing units in India. According to experts, with the implementation of manufacturing skills in India, the country has the potential to achieve a greater degree of self-sufficiency in electronics. According to another survey, at the current growth rate of the ESDM market, forecasts show that the industry will grow from $76 billion in 2013 to $400 billion in 2020, coupled with the fact that semiconductor consumption will continue to increase and there will be a need to fill this gap in the electronics area.
The Indian government has allowed 100 percent Foreign Direct Investment (FDI) under the automatic route in the ESDM sector. FDI in electronics manufacturing reached an all-time high of Rs 1,23,000 crore ($18.34 billion) in 2016, up from around Rs 11,000 crore ($1.64 billion) in 2014. Along with these numerous Major organizations are starting to realize the potential in this sector and are investing heavily in production from India. For example, Panasonic Corporation is incorporating a new factory in Haryana, which will produce refrigerators and build a research and development (R&D) center for home appliances for the Indian market.