Pakistan has begun its journey to become a player in the global semiconductor ecosystem, a market worth around $600 billion.
To achieve this goal, the country is seeking foreign investment from its Arab partners. At home, it has launched INSPIRE (Initiative to Nurture Semiconductor Professionals for Industry, Research & Education) to develop local talent.
Prime Minister Shehbaz Sharif inaugurated the INSPIRE program a few days ago in Islamabad.
What is INSPIRE:
Under the initiative Pakistan will train 7,200 professionals in next five years.
Special Investment Facilitation Council’s (SIFC) already on board. National Semiconductor Task Force is also formed.
The government has made commitment to develop a digitally empowered Pakistan with public-private collaboration.
The government says it will train thousands of professionals under the program. It will link academia, research, and industry to develop a sustainable national semiconductor ecosystem.
The planning ministry, under its Public Sector Development Programme (PSDP), had allocated Rs 4.5 billion for this programme.
Prime Minister Shehbaz Sharif termed it just a drop in the ocean, vowing funding is no issue for this programme.
Under first phase of broader National Semiconductor Development Roadmap, INSPIRE will lay the foundation for Outsourced Assembly & Testing (OSAT) and fabrication capabilities.
INSPIRE will engage nine public-sector universities across Pakistan and establish six integrated circuit (IC) labs.
Better Late than Never:
Experts believe Pakistan is late to the game but better late than never.
India, in 2021, launched a $10 billion incentive program to attract global semiconductor firms and develop its domestic ecosystem. The initiative has already led to several high-profile investments. It includes: Tata Electronics Private Limited’s $10 billion investment in a fabrication (fab) plant. U.S.-based Micron Technology agreement for a $2.75 billion investment to build an ATM (Assembly, Testing, Marking, and Packaging) plant. And reports about Tower Semiconductor and the Adani Group investment of $10 billion in a semiconductor project in Maharashtra.
South Korea and Taiwan already manufacture the world’s most advanced chips. China, Japan, and the United States have invested billions of dollars to reach perfection.
Fabless or Fabrication:
Experts in Pakistan suggest the country should now focus on a fabless model rather than fabrication.
Fabless refers to the process of designing chips and outsourcing their manufacturing. Fabrication (or fab) involves the physical manufacturing of chips in specialized facilities. Fabrication is a far more costly process, requiring billions of dollars in investment compared to the fabless model.
China controls between 80 and 90 percent of the raw materials needed for semiconductor fabrication.
From the government’s initial move-INSPIRE-it seems Pakistan is focusing first on training professionals for chip designing. However, experts say the country should ultimately develop capabilities in domestic fabless chip development as well with the aim to eventually become a global player in the semiconductor supply chain.
