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India's vision to setup Semiconductor eco-system
#Semiconductorchips are the brain behind most electrical and electronic equipment that require some form of computing intelligence. Beginning from smartphones to electric vehicles, semiconductor chips are required everywhere. India is already a major hub for semiconductor research, chip design, and equipment engineering, but its future potential is even greater. As electronics is now the second biggest import cost after energy.
India’s semiconductor demand is expected to more than double to $64 billion by 2026. The government launched a Rs 76,000 crore semiconductor scheme that aims to establish semiconductor and display fabrication facilities and the corresponding chip ecosystem.
India’s goal is to become a world leader in the semiconductor industry. Domestic semiconductor consumption is expected to cross $80 billion in 2026. It is a known fact that most of the chips are manufactured in Taiwan. TSMC, the world's largest contract chip manufacturer, started making semiconductor chips in 1987. According to estimates, 90% of 5 nanometre chips are mass-produced in Taiwan by TSMC. However, the tensions between China and Taiwan have led to a global chip shortage.
Increasing tensions between the US and China are encouraging global chip makers to change their supply locations. This has a paradigm shift and these chip makers are currently concentrated on moving to East and Southeast Asia. Both the Indian government and the Tata group are placing their bets to ensure this shift will make India a new hub for semiconductor technology.
The United States and India’s semiconductor groups have teamed up to reinforce their cooperation in the global semiconductor industry. India holds over 6 percent of the world’s rare earth reserves, some of which are vital to the production of semiconductors, and Indian companies have been pushing the government to take advantage of this fact.
Several Government InitiativesBy VARINDIA| 128 views
Growing semiconductor shortage remains a global concern
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Global Semiconductor supply crunch
Semiconductors, or chips, have properties that are somewhere between conductors and insulators. Usually made of silicon, they are used to power a wide range of devices - cars, laptops, smartphones, household appliances and gaming consoles. These semiconductors perform a host of functions such as powering displays and transferring data. So, a supply crunch has a consequent impact on sales of cars, fridges, laptops, TVs and other electronic devices. In India, the number of investors in cryptocurrencies has rapidly grown over the past year, and is now distorting how semiconductors are used. Global leaders and executives at multinational corporations are worried about the global shortage of semiconductors which has hit manufacturing and sales in numerous countries and no early solution is in sight. The unforeseen situation is not expected to improve anytime soon, and supply constraints could potentially continue into 2023. Though companies are on a war footing to ramp up production, the problem will likely worsen before reaching a resolution. Intel's chief executive, Pat Gelsinger, recently warned that the worst is yet to come. The surge in sales for electronic devices during the pandemic created a huge demand for semiconductors. But COVID-19 is not the only factor behind the shortage. The chip shortage has now become a talking point not just between companies and governments, but also between leaders of countries. Western countries have expressed a need to shift manufacturing within their countries and become self-reliant.
Another key reason is the tense relationship between the United States and China is also a factor, since many US companies do business with Chinese companies. For instance, Huawei, which supplied to American chip makers, has been blacklisted by the US government. Production of laptops, tablets, smartphones and other electronic devices haBy VARINDIA| 164 views
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