One of India's most comprehensive software exporters, Tata Consultancy Services (TCS), recently launched a new robotic process automation (RPA) solution for greater precision and reliability in chip manufacturing. RPA will also help semiconductor companies with digital transformation.
TCS has created a unique Semiconductor Center of Excellence (CoE) to design closed-loop systems that connect analytics and digitalization for the semiconductor value chain. CoE experts are engineering production robots, equipped with intelligent algorithms, that will improve quality and efficiency in semiconductor manufacturing.
TCS' Robotic Data Factory, built on Blue Prism's Connected-RPA platform, will leverage production data to improve business workflow and reduce response times during semiconductor production.
“We are bringing our deep contextual knowledge gained from engagements in the semiconductor business and leveraging the power of robotic automation to streamline business processes using FAB data effectively,” said V Rajanna, global head of Technology Business Unit at TCS. “This will significantly boost our consumers’ Business 4.0 transformation efforts with faster product introduction and improved quality.
Rajanna added: “Our new CoE re-emphasizes our commitment to investing in establishing new digital paradigms for the semiconductor industry.”
Driven by big data, hyperconnectivity and IoT adoption, the semiconductor market is changing rapidly. Manufacturers are trying to keep pace through new business strategies, product line expansions and an aggressive focus on time to market.
“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 and global sales. Service Providers, Blue Prism Americas. “We are encouraging disruption and innovation by driving unbeatable value advice for deploying intelligent automation solutions.”
Semiconductor manufacturing
Global shipments — of devices such as PCs, cell phones and tablets — are expected to reach 2.2 billion in 2019. All of these devices require semiconductor chips to function. Countries that successfully produce these chips have a powerful influence on the global economy.
While India has done well in chip design and electronics manufacturing, there have been challenges in setting up Semiconductor Wafer Manufacturing (FAB) assembly facilities. This is due to several factors, including the loss of infrastructure and skilled labor in the country. It's also difficult to compete with China and Vietnam, which typically offer chipmakers cost-effective labor and production. This is one of the reasons, for example, why Intel had no interest in starting to manufacture in India – as the company stated in 2014.
However, there have been efforts to establish semiconductor FAB arrays in India by private companies. 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. But this year, the government withdrew the letter of intent granted to HSMC and the deal fell through. The reason: the consortium did not present the documents required by the government for the implementation of the FAB unit.
This is unfortunate because AMD supports HSMC. The consortium 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. However, in 2016, debt-laden Jaiprakash (JP) Associates withdrew the ₹34,000 crore.
If the only two private consortiums authorized by the government to build large-scale chip production in India were unsuccessful, then this is one of the reasons why the country is lagging behind in the semiconductor industry.
ESDM in India
The Indian government has announced several subsidies and incentives for initiatives to implement electronics manufacturing in the country. According to research, at the current growth rate, the electronic systems design and manufacturing (ESDM) market will grow from $76 billion in 2013 to $400 billion in 2020.
The government has also allowed 100 percent Foreign Direct Investment (FDI) under the automatic route in the ESDM sector. FDI in electronics production reached an all-time high of 1.23 billion rupees ($18.34 billion) in 2016, compared to around 11 billion rupees ($1.64 billion) in 2014.
Fortunately, some companies are recognizing the potential of the ESDM sector in India and investing in the manufacturing industry. 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 in the country.
