Government Accelerates Build Semiconductor Industry Ecosystem

VIVA – The government through Minister of Industry will accelerate the development of the semiconductor industry ecosystem in Indonesia to fulfill the increasing needs of the domestic market. This strategic step will support the increase in productivity and competitiveness of several manufacturing industry sectors that require semiconductors as the main component.

"The development of the semiconductor industry ecosystem is in line with the Making Indonesia 4.0 target. Therefore, we mobilize the nation's capabilities from electronics to microelectronics experts," the Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) Ministry of Industry, Taufiek Bawazier said in Jakarta, Thursday, December 8, 2022.

Taufiek revealed that Indonesia ever had a semiconductor factory in 1986. In fact, it was able to export in the form of semiconductor chips whose value reached IDR135 million at that time.

"Therefore, efforts to rebuild the semiconductor industry in the era of artificial intelligence are a huge opportunity. This is because we need a road map for the next 10-20 years for the semiconductor industry that can fill domestic needs," Taufiek explained.

According to Taufiek, the Ministry of Industry is preparing a semiconductor design center in Bandung, West Java with all related institutions, including universities and academics.

On the same occasion, Plt. Director General of the Chemical Pharmaceutical and Textile Industry (IKFT), Ignatius Warsito said that the semiconductor industry produces vital components of technology amid megatrends such as remote working, artificial intelligence (AI), and electric vehicles (EV).

"Semiconductors are produced as components of electrical/electronic equipment such as diodes, integrated circuits (ICs), and transistors," Warsito remarked.

Therefore, the Industry Ministry continues to strive to master strategic industries ranging from upstream, and intermediate, to downstream sectors, including the development of the semiconductor industry. This step needs to be followed by strategic policies that support a conducive business climate.

"Investment in upstream intermediate industries such as MG-Si with a capacity of 32 thousand metric tons per year requires US$ 300 million. The polysilicon industry with a capacity of 6,500 metric tons per year requires US$373 million. Meanwhile, the monocry monocrystalline ingot and silicon wafer industries require an investment of US$ 85 million," Ignatius Warsito concluded.