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\u2018It\u2019s a roller-coaster ride\u2019: Global chip shortage is making industries sweat<\/h4><\/a><\/div><\/div>
So, why does India lag in chip-making?<\/strong>

As of now, India is dependent on imports to meet the demand for chips. Over the last few years, India has been making efforts to emerge as a destination for semiconductor firms.

Chip making is a highly complex process, which is why only a few countries have the expertise and skills required to gain a leadership position for this segment. For this reason, it is not easy to ramp up production in the wake of the shortage. Almost 50% of the global chip supply is supported by Taiwan Semiconductor Manufacturing Company (TSMC<\/a>). It is the world's biggest chip manufacturer, and it also makes chips for several companies, including Qualcomm<\/a>, MediaTek, and AMD, among others.

Apart from that, the US and South Korea are the dominant players in this segment. The geopolitical tensions between the two superpowers, the US and China, are now pushing the latter to develop competencies in the semiconductor sector. Over the last few years, it has greatly enhanced its capability in chip making. Last year, the country announced plans to invest $1.4 trillion over six years to develop the semiconductor industry by 2025.

Further, China's Dual Circulation strategy intends to make significant investments in this segment has helped the country reach key milestones. China has also made semiconductors its priority in its 14th five-year plan declared last year. China is using a combination of subsidization, private equity, and lowering of barriers to entry for foreign participants. The country hopes to meet at least 70% of its target by 2025...this is significant because China is the biggest consumer of chips and accounts for 40% of the world's chipset consumption.

It is not easy to develop competencies in chip manufacturing. It is an extremely capital-intensive and complex process where the success depends on how small the transistor can be. Setting up a semiconductor unit demands a massive investment of around INR50,000 to INR75,000 crore over two-to-three years. This kind of investment is challenging even for big players and needs several companies to come together or the Government's backing to set up a semiconductor ecosystem.

The manufacturing units of chips, also known as fabs, require high precision and use cutting-edge technology. The smaller a transistor means more it can do more without getting too hot. The efficiency of a processor depends on each transistor's size, which is measured in nanometers (nm). Just to put this is in perspective, in spite of China's efforts of the last several years, it has only now started to produce 28-nanometer and 14nm chip wafers. This is seen as a sign of the country's growing capabilities as a chipmaker.

A key requirement for semiconductor firms is the availability of a qualified workforce, and it is here that the country is found lacking. Another challenge faced by India is that the chip manufacturing units require a massive quantity of water and an uninterrupted power supply, which can be a problem in India.

India should remember that if intent doesn't translate into action in time, it will lose the opportunity. A case in point is Intel's plant in 2007. A delay in coming out with semiconductor policy pushed the chip giant Intel to opt for Vietnam over India as its destination for semiconductor facility. Intel has the largest non-manufacturing presence outside the US in India, and setting up a fab unit would have been a natural progression.

Another project that didn't take off was Hindustan Semiconductor Manufacturing Corporation. Several international investors, including STMicroelectronics and Malaysia's SilTerra, came together with the intention to set up a fab unit in Gujarat with an investment of Rs 30,000 crore. However, the project never really took off, and the Letter of Intent (LoI) was canceled in 2019.

The ongoing chip shortage<\/a> is likely to last till next year and is impacting several sectors, including electronics and automobiles, among others. The time is perfect for the country to attract semiconductor firms to India, but it has to proactively address the concerns of the chipmakers.

(Gagandeep Kaur is a New Delhi-based independent telecom journalist)
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Follow and connect with us on Twitter<\/a>, Facebook<\/a>, Linkedin<\/a>, Youtube<\/a><\/div>","NumberOfSentences":{"minfo":"65.0","minfoseo":"65-0"},"AutomatedReadabilityIndex":{"minfo":"14.0","minfoseo":"14-0"},"LastPublishMilliTime":{"minfo":"1621498146846","minfoseo":"1621498146846"},"ReadabilityGradeLevel":{"minfo":"College","minfoseo":"college"},"GadgetsMarkedReviewed":{"minfo":"0","minfoseo":"0"},"HashCode":{"minfo":"-377411772","minfoseo":"-377411772"},"latestnewsflag":{"minfo":"1.0","minfoseo":"1-0"},"OriginalImageHeightPx":{"minfo":"1414.0","minfoseo":"1414-0"},"OriginalImageWidthPx":{"minfo":"2119.0","minfoseo":"2119-0"},"NumberOfCharacters":{"minfo":"7725.0","minfoseo":"7725-0"},"NumberOfWords":{"minfo":"1239.0","minfoseo":"1239-0"},"key":{"0":{"keyid":"465959","value":"chip 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The company is holding a \"tool-in\" ceremony in Arizona on Dec. 6.","seolocation":"telecomnews\/biden-to-visit-taiwanese-chip-manufacturer-tsmcs-arizona-plant-on-dec-6","seolocationalt":"Biden to visit Taiwanese chip manufacturer TSMC's Arizona plant on Dec 6","url_seo":"biden-to-visit-taiwanese-chip-manufacturer-tsmcs-arizona-plant-on-dec-6"},"95653074":{"msid":"95653074","stname":"TSMC planning advanced chip production in Arizona, says company's founder","artsyn":"Taiwan Semiconductor Manufacturing Co Ltd (TSMC) , a major Apple Inc supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona.","seolocation":"telecomnews\/tsmc-planning-advanced-chip-production-in-arizona-says-companys-founder","seolocationalt":"TSMC planning advanced chip production in Arizona, says company's founder","url_seo":"tsmc-planning-advanced-chip-production-in-arizona-says-companys-founder"},"94780806":{"msid":"94780806","stname":"Asian chipmakers plunge after US unveils China export controls","artsyn":"The US Department of Commerce said the measures include export restrictions on some chips used in supercomputing, and toughen requirements on the sale of semiconductor equipment.","seolocation":"telecomnews\/asian-chipmakers-plunge-after-us-unveils-china-export-controls","seolocationalt":"Asian chipmakers plunge after US unveils China export controls","url_seo":"asian-chipmakers-plunge-after-us-unveils-china-export-controls"},"94725213":{"msid":"94725213","stname":"Gehlot invites Vedanta Group to set-up semi-conductor chip industry in Rajasthan","artsyn":"\"There is a protest going on in Maharashtra that why Anil Agarwal is shifting the industry to Gujarat. A lot of it has appeared in newspapers. I would like to say you (Agarwal) that there is a fight between Maharashtra and Gujarat. So, shift the industry to Rajasthan,\" Gehlot said.","seolocation":"telecomnews\/gehlot-invites-vedanta-group-to-set-up-semi-conductor-chip-industry-in-rajasthan","seolocationalt":"Gehlot invites Vedanta Group to set-up semi-conductor chip industry in Rajasthan","url_seo":"gehlot-invites-vedanta-group-to-set-up-semi-conductor-chip-industry-in-rajasthan"},"94536728":{"msid":"94536728","stname":"ETtech Opinion: India on its way to becoming self-reliant in semiconductors","artsyn":"India has already launched the \u2018Semiconductor Mission\u2019 and approved the \u2018Semicon India\u2019 programme with an investment of Rs 76,000 crore under the production-linked incentive scheme for the growth of semiconductor and display manufacturing.","seolocation":"telecomnews\/ettech-opinion-india-on-its-way-to-becoming-self-reliant-in-semiconductors","seolocationalt":"ETtech Opinion: India on its way to becoming self-reliant in semiconductors","url_seo":"ettech-opinion-india-on-its-way-to-becoming-self-reliant-in-semiconductors"},"94151565":{"msid":"94151565","stname":"Vedanta-Foxconn JV selects Gujarat for display fab, semiconductor facility","artsyn":"\u201cThey have requested for an area of up to 1,000 acres outside of Ahmedabad as the connectivity to that area is very well established. (Vedanta-Foxconn) has also sought some other incentives and tax breaks. The discussions on these aspects are ongoing,\u201d one of the people said.","seolocation":"telecomnews\/vedanta-picks-modis-home-state-for-20-billion-india-semiconductor-foray-sources","seolocationalt":"Vedanta-Foxconn JV selects Gujarat for display fab, semiconductor facility","url_seo":"vedanta-picks-modis-home-state-for-20-billion-india-semiconductor-foray-sources"},"93996348":{"msid":"93996348","stname":"In the global semiconductor race, India\u2019s chip manufacturing needs to get the \u2018chemistry\u2019 right","artsyn":"Chips may be the new oil, but global supply chains are the fulcrum of this ecosystem. Global semiconductor manufacturing comprises three pillars: equipment, materials and services.","seolocation":"telecomnews\/in-the-global-semiconductor-race-indias-chip-manufacturing-needs-to-get-the-chemistry-right","seolocationalt":"In the global semiconductor race, India\u2019s chip manufacturing needs to get the \u2018chemistry\u2019 right","url_seo":"in-the-global-semiconductor-race-indias-chip-manufacturing-needs-to-get-the-chemistry-right"},"93932560":{"msid":"93932560","stname":"Micron to invest $15 billion in new manufacturing unit in Idaho","artsyn":"The investment takes into account anticipated federal grants and credits under the CHIPS and Science Act and will create 17,000 jobs by the end of the decade.","seolocation":"telecomnews\/micron-to-invest-15-billion-in-new-manufacturing-unit-in-idaho","seolocationalt":"Micron to invest $15 billion in new manufacturing unit in Idaho","url_seo":"micron-to-invest-15-billion-in-new-manufacturing-unit-in-idaho"},"93622467":{"msid":"93622467","stname":"IESA to skill students in semiconductor tech as India aims to be chip hub","artsyn":"\"Naturally, the sector is ripe with abundant opportunities for different stakeholders, including budding ECE and CE graduates. However, we must admit that compared to the IT sector, semiconductor and electronics industry is relatively lower on the radar of modern-age students,\" said Dr Pradip Thaker, Executive Council, IESA.","seolocation":"telecomnews\/iesa-to-skill-students-in-semiconductor-tech-as-india-aims-to-be-chip-hub","seolocationalt":"IESA to skill students in semiconductor tech as India aims to be chip hub","url_seo":"iesa-to-skill-students-in-semiconductor-tech-as-india-aims-to-be-chip-hub"},"93580754":{"msid":"93580754","stname":"China's semiconductor output dips 17% in July amid US threat","artsyn":"According to data released by the National Bureau of Statistics, the production of integrated circuits (ICs) dropped 16.6 per cent year-on-year to 27.2 billion units last month, reports South China Morning Post.","seolocation":"telecomnews\/chinas-semiconductor-output-dips-17-in-july-amid-us-threat","seolocationalt":"China's semiconductor output dips 17% in July amid US threat","url_seo":"chinas-semiconductor-output-dips-17-in-july-amid-us-threat"},"93510855":{"msid":"93510855","stname":"SK Hynix to break ground on new U.S. chip packaging plant early next year: Sources","artsyn":"The plant, whose estimated cost would be \"several billions,\" would ramp up to mass production by 2025-2026 and employ about 1,000 workers, one of the sources said, declining to be named because the details surrounding the plant have not been made public.","seolocation":"telecomnews\/sk-hynix-to-break-ground-on-new-u-s-chip-packaging-plant-early-next-year-sources","seolocationalt":"SK Hynix to break ground on new U.S. chip packaging plant early next year: Sources","url_seo":"sk-hynix-to-break-ground-on-new-u-s-chip-packaging-plant-early-next-year-sources"},"93441848":{"msid":"93441848","stname":"GlobalFoundries to seek CHIPS Act funds for Vermont chip plant","artsyn":"The facility, located in Essex Junction, Vermont, produces 200 millimeter wafers and needs to be revamped, Caulfield said. \"With partnership investments with the U.S. government, we can create a facility that has been around for 50, 60 years and give it its next 50, 60 years of longevity,\" he said.","seolocation":"telecomnews\/globalfoundries-to-seek-chips-act-funds-for-vermont-chip-plant","seolocationalt":"GlobalFoundries to seek CHIPS Act funds for Vermont chip plant","url_seo":"globalfoundries-to-seek-chips-act-funds-for-vermont-chip-plant"},"93199300":{"msid":"93199300","stname":"U.S. Congress passes long-awaited bill to boost chipmakers, compete with China","artsyn":"The Senate passed the \"Chips and Science\" act with bipartisan support on Wednesday, after more than a year of effort. A rare major foray into U.S. industrial policy, the bill provides about $52 billion in government subsidies for U.S. production of semiconductors used in everything from automobiles and high-tech weaponry to electronic devices and video games. It also includes an investment tax credit for chip plants estimated to be worth $24 billion.","seolocation":"telecomnews\/u-s-congress-passes-long-awaited-bill-to-boost-chipmakers-compete-with-china","seolocationalt":"U.S. Congress passes long-awaited bill to boost chipmakers, compete with China","url_seo":"u-s-congress-passes-long-awaited-bill-to-boost-chipmakers-compete-with-china"},"93175434":{"msid":"93175434","stname":"U.S. Senate passes bill to boost chip manufacturing, compete with China","artsyn":"The \"Chips and Science\" act provides about $52 billion in government subsidies for U.S. semiconductor production and an investment tax credit for chip plants estimated to be worth $24 billion.","seolocation":"telecomnews\/u-s-senate-passes-bill-to-boost-chip-manufacturing-compete-with-china","seolocationalt":"U.S. Senate passes bill to boost chip manufacturing, compete with China","url_seo":"u-s-senate-passes-bill-to-boost-chip-manufacturing-compete-with-china"}}}}" data-news-images="[{"msid":"82762270","msname":"chip making","msnameseo":"chip-making","mediatype":"1","artdate":"2021-05-19 12:22:00.0","caption":""}]" data-newsletter-by="0" data-newsletter-date="a" data-hasbottomcarousel="" data-alldetailsopen="0" data-multipleanalyticshit="" data-deeplink="https://ettelecom.app.link?$deeplink_path=" data-socialshareformat="default">

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• 电信日记:2023年将成为BSNL的分水岭吗?

  

  在BSNL计划推出4G服务时，包括Reliance Jio和Airtel在内的私营企业已经在选定的城市推出了5G服务。随着第三家私营运营商沃达丰Idea苦苦挣扎，这是BSNL介入并为客户提供高质量数据服务以夺回失去的市场份额的正确机会。印度国家电信公司的4G项目已经推迟了3年。

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  在2022年至2032年的10年期间，平均每年将有近2000名员工退休，这使该公司成为一个更专注于与私营行业企业——Reliance Jio、Bharti Airtel和Vodafone Idea——竞争的组织。

• 印度国家电信公司将为5G部署分配6200亿卢比的频谱

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• 交易员:印度国家银行将于下周发行10年期债券

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  分析人士说，印度和越南正在成为苹果的下一个制造中心

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  Celesta Capital着眼于投资印度半导体行业

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  苹果在美国将自我修复计划扩展到M1 Mac台式机

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  拉贾斯坦邦选择Jio和Airtel进行“免费电话”计划

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  5G将成为企业转型的催化剂