India is geographically a big country and it is possible to identify areas which are less prone to earthquake.In fact even Taiwan fabs like TSMC,UMC are also in earthquake prone zone and even they can move some production to India.
@Atul excellent idea. I totally agree with your opinion. I would not be surprised 15 years down the line most of the fabs would operate from India (if indian govt is serious about semiconductor growth). We all know how IT industry grew in India. India has got lof of engineering talent, all that is needed is will to implement the project.
Are you suggesting India should stop launching satellites because there are already too many of them in the space ? I find you logic pretty wague. India needs fab because it has to mark its presence in the world of semiconductor. We all know what happened to Japanese fab during Tsuname, all of them were shut down. Its good to diversify fab location so that we dont encounter those shutdowns again.
After recent earthquakes in Japan , they must be planning to derisk future Semiconductor production by shifting some of the fabs out of Japan . Indian government should approach top Japanese Semiconductor manufacturers to relocate some of their fabs to India . This will be a win-win situation for India and Japan . India will not start from scratch for their fabs and Japan will find a place for its fab which is less earthquake prone. Additionally , Japan can try to get a big share of USD50 billion Indian Semiconductor market being projected.
You point out to the "hurdles" correctly. But, what I dont understand is the disproportionate and overwheling cynicism. Why does everyone sound gloomy about attempts beyond mediocrity? Is it the nation that makes the citizens or the citizens who make the nation?
The new agency is not chartered to help set up many fabs. It would be a strategic step in the technology ecosystem of the country to have at least one semiconductor wafer fab. facility. It will boost the semiconductor design/electronics design community too. I agree there is a sense of dis-belief and bias to the article, but Indian Govt. and its policies have long been too farcical and one would expect such skepticism from even the most neutral observers.
I would suggest that if it made economic sense then a fab would be built, otherwise it could be an expensive project. On the other hand, it would have been nice to have alternate fab sources as insurance against earthquakes prone Japan given the significant numbers of fabs there. Perhaps, some automakers would be interested in setting up fabs in India as a hedge against natural or man made disasters? Just a though.