Semi Conductors are the foundation of the modern electronics Industry ,it is a bridge between developing nations and developed nations. The semiconductor industry also decides the nation’s hegemony and mastery in almost all kinds of modern technology.
Challenge for India Multiple Technology to be Master.
For a newly independent country , the biggest challenge was to attain complete independence in multiple domains of newly emerging technology. World war II had taught a strong lesson to nations, Indian leaders were also aware about the application of technology in modern warfare. It was also the time when many new technologies such as Atomic Energy, Computer, Semiconductor etc. were emerging in western world.
For countries like India with its sheer large size, it was difficult to formulate Policy given the enormous amount of data. India planners were aware about the role of newly emerging computing technology in Planning. For better planning, the National Sample Survey was established in 1950, it gathers vital economic statistics. NSS was the product of the thinking of Prasanta Chandra Mahalanobis, who was founder of Indian Statistical Institute and member of Planning commission. It is important to mention P C Mohalanobis here because he was among the leading scholars ,who were shaping the foundation of new India.
Background of Newly Evolving world
- After the USA used nuclear weapons, countries were aggressively pursuing nuclear weapons. Russia conducted its first nuclear test in 1949, U.K in 1952, France in 1960, China in 1964 and India in 1974. Nuclear weapons are considered to be the ultimate deterrent against enemies in the newly evolving world. No country wanted to be left behind it.
- In Electronics , 1954 was a remarkable year, the first Junction Transistor was built at Bell Lab , it was a germanium based transistor, later silicon took over because it handled heat better. It was easy to do Mass production. Consequently, radios became pocket-sized and Military and space programs pushed rapid improvement. All these developments were very fast and beyond comprehension. In the late 1950s Integrated circuit changed electronics forever.
- In 1950 China began consolidated control over Tibet and brought forces close to India’s borders. India’s leadership opposed China’s actions in Tibet and gave asylum to the Dalai Lama in 1959. 1962, in retaliation China launched a sudden military offensive in both eastern and western sectors. Newly organised Indian forces were poorly prepared for high-altitude warfare. In November 1962, China declared a unilateral ceasefire and withdrew in the east but retained control of Aksai China but war left a lasting impact on India’s national consciousness.
Planning Dilemma : An underdeveloped country faced many dilemmas regarding the Regulation and resource allocation. Indian Policy makers have to decide whether to do sweeping nationalization or adopt privatisation, or choose a combination of both. Nationalisation may lead to price stabilization but is less innovative. Privatisation may prove more innovative but less suitable to a country with high birth rate, poverty and illiteracy. After World War 2 inflation was also a big challenge for countries.
Quest for Nuclear: For India nuclear weapons were a prerequisite for its survival. The Indian Atomic Energy Commission was set up on 3 August 1948 under the late Department of Scientific Research for materializing the dream of nuclear power. A resolution passed by the Government of India later replaced the commission by “Atomic Energy Commission of India” on 1 March 1954 under the Department of Atomic Energy with Homi J. Bhabha as secretary, he was another man who played a very critical role in Indian nation building.
In 1942 Council of Scientific and Industrial Research (CSIR) was India’s premier publicly funded research and development Established. CSIR plays a central role in advancing scientific knowledge, technology innovation, and industrial competitiveness across diverse sectors. Homi J. Bhabha, known for his role in the development of the Indian atomic energy programme, wrote to the Sir Dorabji Tata Trust requesting financial assistance to set up a scientific research institute. With support from J.R.D. Tata, then chairman of the Tata Group, TIFR was founded on 1 June 1945, and Homi Bhabha was appointed its first director. Initially the institute operated within the campus of the Indian Institute of Science, Bangalore before relocating to Mumbai later that year. TIFR’s new campus in Colaba was designed by Chicago-based architect Helmuth Bartsch and was inaugurated by Prime Minister Jawaharlal Nehru on 15 January 1962.
In the Electronic sector Indian Businessmen realised the power of electronics early and to lobby Indian Electrical & Electronics Manufacturers’ Association (IEEMA) was established in 1948. Between 1930 onward many foreign companies exported Radio to the country.
Beginning of Semiconductor Journey:
Despite all the challenges Indian began its journey in semiconductor with Bharat Electronics Limited , it was founded in Bangalore, Karnataka, India in 1954. BEL started with importing technology from foreign companies like Philips and started manufacturing the discrete semiconductor devices .
In the beginning it manufactured a few communication equipment in 1956, it later started manufacturing receiving valves in 1961, germanium semiconductors in 1962, and radio transmitters for All India Radio in 1964 with help from the Soviet Union. Indian Planners were happy seeing the Radio Revolution in the country. In 1966, BEL set up a radar manufacturing facility for the army and in-house R&D. Later in the 1970s, BEL procured 7 micron Bipolar technology from Radio Corporation of America (RCA)1 to manufacture Small Scale Integrated Circuits on 3” wafers.
In the late 1960s, Fairchild (the pioneer of Silicon Valley) wanted to build a plant in India to increase in scale of Production and minimise the cost but was driven away to Malaysia/Hong Kong due to bureaucracy and it was key turning point in India’s semiconductor Journey, we can compare it with Late SCL fire incident of 1989.
Role of Private Sector
Private sector enterprises are also actively exploring emerging semiconductor Hind Rectifiers Ltd, a private sector enterprise was founded in 1958, in collaboration with Westinghouse, Brake & Signal, U.K. The plant for manufacturing power Silicon diodes was imported from Westinghouse Brake & signal Co. Ltd. UK in 1966. Starting in the early 70’s Hirect started Manufacture of equipment like battery chargers, High Voltage and High Current Rectifiers for Railway Applications were also started about the same time.
CDIPL was incorporated in the year 1964 as a joint venture with Continental Device Corporation, USA. The company subsequently became a 100% Indian company in 1977 after the exit of its joint venture partner. During this time CDIPL specialised manufacturing of silicon transistors in India.
British Physical Laboratories India Pvt. Ltd. was founded in 1963, during the Licence Raj, by T. P. Gopalan Nambiar in Palakkad, Kerala. It founder Nambiar had worked in the United Kingdom and United States, and when he returned to India, he desired to create a company that manufactured high-quality electronic products, and he wanted to make BPL a household name.The initial products were precision measuring instruments such as sealed panel meters for Bharat Electronics as a subcontract for Indian Army. The newly founded company was a joint venture with the British company of the same name. Then BPL expanded its medical product ranges to include electrocardiographs and patient-monitoring systems later.
Govt Role in Semiconductor Industry:
Looking at the importance of the electronic sector, the Govt of India constituted a committee under Homi Ji Bhaba for solving the problem of Electronic Industry in India. However, before the committee released its report, Homi Ji Bhaba died in a plane crash.
Homi Ji Bhaba often equated progress in electronics with the modernisation of India, he was quick to realize that electronics can generate more employment than other industries. For him electronics were equally important as Nuclear. However electronics were still seen as technology for common goods and not as a strategic industry, as it is seen today.
Problems of Semiconductor Industry in India
During this period , the Electronics industry was under the control of the Defence minitry, which shows how Indian planners see electronics as emerging technologies. We already have noticed that initially electronics are diverted more toward Defence than consumer markets. The second Indian Scientist has released that without electronics the country can not realize its Nuclear and Space dream.
During this period decision making was very centralised. The government on the recommendation of the committee started allowing the private sector to participate in Electronics, subsequently licenses were granted to many private players to produce different -different electronics equipment. The Bhabha Committee has recommended a programme of ten years for attain self sufficiency in Electronics.
However Indian Semiconductor or Electronics dreams always remain in the shadow of the Nuclear and Space Programme. Indian Policy makers acknowledge the role of Semiconductor only in limited context. In atomic energy India had Homi Ji Baba , in Space Vikram Sarabhai but Semiconductor India had none.Here is interesting Speech of by The Ministry of Home affair and Defence in reply to a question related to Bhabha Committee report apprised the House,
“The Bhabha Committee in its report has indicated a systematic plan for the development of the electronics industry in the country. The recommendations contained therein have been scrutinised in detail by a Committee of Secretaries with a view to determining the type of components, number of manufacturing units to be set up and their target of production to be achieved. Action has been initiated to implement the decisions of the Committee of Secretaries. Meanwhile, the Government had already started implementation of some of the recommendations of the Bhabha Committee as they were taking shape in those fields where immediate such implementation was feasible, e.g., licensing of the manufacture of connectors, switches, relays etc. Action has also been taken to expand the production of silicon devices in Bharat Electronics Limited, Semiconductors Limited, Poona, and Continental Device Limited, Faridabad. Bharat Electronics Limited is also expanding production of valves and other components and establishing new production of certain items of equipment. Approval has been given to the Atomic Energy Establishment in Bombay to set up components, instruments etc. Commercial production unit at Hyderabad. A number of national laboratories and other laboratories have been given research and development problems regarding special components, e.g, batteries, capacitors, microwave components and various raw and processing materials which will be required for the establishment of a satisfactory electronics industry.”
Problems of Industry
India face dilemma of mastering different technologies. Semiconductor industry reamin under the shadow of Nuclear and Space programme. Indian Planner could not see electronics beyond the commodity for Common Goods. Centralisation of Decision making was other challenges for industry, It was olny after 1980, India start see semiconductor as strategic industry.
Indian Private Enterprises played very critical role without govt active support as we seenn in case of China. Indian master many technologies early ,even before China and Korea but could not sustain it.
