#14: Semiconductor push in India

All you need to know for UPSC

Semiconductors: the new 'weapons' of geopolitics are finding a strong relevance in Indian discourse.

What is a Semiconductor?

- Thumbnail sized 'building blocks' of almost every modern electronic device
- Give computational power to devices

Working of a Semiconductor

- Basic component: sliver (not silver) of silicon
- sliver etched with billions of microscopic transistors in a pattern to control current flow determined by computational instructions

Steps in Supply Chain

- Developing software for chips
- Patenting them via core IPR
- Making chip fabrication machines
- Setting up factories (aka fabs)
- ATMP (Assembly, Testing, Marking and Packaging)

Global Concentration

- Taiwan, S. Korea, and USA are biggest players
- 90% of 5nm chips by Taiwan Semiconductors Manufacturing Company (TSMC)
- Industry Valuation: $500-$600bn globally

Major global efforts to secure chip supply chain

Amidst Chinese position on Taiwan, major economies are forced to enter chip-making sector. What are major efforts?

- USA: $52.7bn government funds for chips + Science Act
- EY: €43bn for public and private investments
- India: $10bn PLI + fiscal support to Designed LI

Indian Scene

- By 2026, Indian demand expected: $70-$80 bn
- PLI: 50% fiscal support for all chips w/ special push to 45nm chips (less time consuming and economical in production)
- 2 plants in GJ (Vedanta and Foxconn)
- One each in TN and KA planned

Challenges

- Limited capital: $3-$7bn needed for 1 fab, total PLI is only $10bn
- Low funds for Research and Development
- Initial cost upfront on taxpayer
- 2-4 million gallons of ultrapure water needed per day per fab (on avg)

If you liked this post, I invite you to support me! You can do that in three simple ways:

1. Become a blog contributor and have your write ups featured on my blog. Write me an email if you’d want to be a contributor

2. Share the link to this post on your WhatsApp story. 

3. -OR-  Contribute a small amount (Pay What You Want) (I send a valuable gift to everyone who makes a contribution)

To find links to my Twitter, Telegram, YouTube and Podcast Visit my Website