Compound semiconductors are the next frontier after silicon. Discuss in the context of recent Cabinet approvals under ISM.

Q. Compound semiconductors are the next frontier after silicon. Discuss in the context of recent Cabinet approvals under ISM. (15 marks, 250 words)

Compound semiconductors—made from two or more elements such as Gallium Nitride (GaN) and Silicon Carbide (SiC)—are emerging as the frontier beyond silicon, which is nearing its physical limits. Recent Cabinet approvals mark India's decisive entry into this space.

Why the next frontier - Superior physics: higher electron mobility, breakdown voltage and thermal efficiency than silicon, enabling compact, high-power devices [2]. - Unlock frontier applications—5G RF, EV power electronics, fast chargers, and Mini/Micro-LED displays—that silicon handles poorly [1].

Recent ISM approvals as the inflection point - May 2026: Cabinet cleared India's first commercial GaN-based Mini/Micro-LED display fab plus GaN foundry (Crystal Matrix, Dholera), ~Rs. 3,936 crore, 2,230 skilled jobs [1]. - May 2025: A SiC compound-semiconductor fab in Odisha and advanced glass-substrate packaging, ~Rs. 4,600 crore [3]. - Enabled by the Modified Programme's uniform 50% fiscal support across fab, OSAT and display nodes [2].

Strategic significance - Diversifies India's portfolio beyond silicon, aiding China+1 de-risking and import substitution amid surging chip demand [4]. - Deepens the Gujarat cluster, generating skilled employment and anchoring high-value manufacturing.

Challenges - Nascent domestic supply chain, gallium/critical-mineral import dependence, capital intensity, and a specialised talent gap.

By moving from silicon assembly toward compound-semiconductor fabrication, India is climbing the value chain. Sustained ISM support, allied to critical-mineral security and skilling under Chips-to-Startup, can convert these approvals into a resilient, self-reliant electronics ecosystem aligned with Atmanirbhar Bharat.

(~250 words)

Sources: 1. Cabinet approves two more semiconductor manufacturing units (~Rs. 3,900 crore), including India's first GaN Mini/Micro-LED fab, May 2026 — GaN Micro-LED fab at Dholera, Rs. 3,936 crore, 2,230 jobs, compound-semiconductor applications 2. Cabinet approves Programme for Development of Semiconductors and Display Manufacturing Ecosystem — Rs. 76,000 crore programme, ISM, 50% fiscal support; compound-semiconductor advantages 3. Cabinet approves semiconductor units in Odisha, Punjab, Andhra Pradesh (Rs. 4,600 crore) — SiC compound-semiconductor fab and advanced packaging 4. India Semiconductor Mission 2.0 — supply-chain de-risking, rising chip demand, talent pipeline