FORTHCOMINGS OF GLOBAL CHIP SHORTAGE IN INDIA
The ongoing global chip shortage may have fortunately opened
the doors for the semiconductor manufacturing plants in India. The global chip
shortage is a result of a domino effect of covid-19 (2020-present). The
pandemic being the primary reason for the increase in demand of semiconductor
chips due to the level up in remote education and jobs. The chip shortage
caused a massive disruption for major companies and have been forced to develop
and manufacture their own semiconductor chips.
Automotive industry has been the worst hit since the shortage
started from early 2020. These so-called semiconductor chips serve as the brain
of the modern electronics and consist of several transistors capable of doing
specified tasks and storing data. Since Motor vehicles have turned “smart”,
they might need a considerable amount of chips to be installed. After the automotive
industries, this spread to other sectors including smartphones, home appliances
and gaming consoles. World’s leading chipmaker Taiwan Semiconductor Manufacturing Co.(TSMC) had to invest at least 40 billion
Dollars to address the global chip shortage and their notable clients are Apple,
AMD, Broadcom, Nvidia and Qualcomm. Samsung being the second leading chip
manufacturer boosted its manufacturing with the increase in demand of chips.
Samsung is expected to have a 52% rise in its profits amidst the chip shortage.
Samsung had to manufacture processors for Google which was designed by Google
for its new Google Pixel 6 smartphone series. However, Samsung and Apple survived
the global chip shortage by their strategies. Samsung developing its own chips
helped them to keep up in the line of manufacturing semiconductor chips.
With 5g devices coming in, chips have been in high demand and will not decline anytime soon. Taiwan and South Korea are topping the list of leading chip manufacturers and India is well behind in the list. Now, there are several reasons behind this scenario. There has been low interest in the field of chip manufacture in India and India has a youth population over a whopping 1205.6 million. Manufacturing of these chips need an uninterrupted supply of water and power which might be a hurdle in India. India is not yet to the par in terms of having good infrastructure which is required to go after setting up a manufacturing unit. But the global chip shortage might be a great thing for India. “Having an open door in front of you means having an opportunity before you”.
The Goverment of Karnataka was quick enough to grasp the oppurtunity and introduced "Semiconductor Policy 2021." Murugesh Rudrappa Nirani, Minister of Large and Medium Industries of Karnataka in a meeting held in Kalaburagi, Karnataka spoke about the semiconductor policy. The policy states the Government of Karntaka has allotted over 2000 crore rupees and 200 acres of land which can be materialised near Bangalore's International Airport, Kalaburagi for setting up new semiconductor based industries and start-ups. With Bangalore already being the "Silicon Valley of India", Karnataka aims to earn the title "India's Semiconductor City" for Kalaburagi. This policy expects to generate over a hundred thousand jobs in and around Karnataka. After Karnataka, Tamil Nadu is a well-known place for setting up industries. They have offered major companies to set up their units in Tamil Nadu. MK Stalin, Chief Minister of Tamil Nadu has urged Samsung, the second leading chip manufacturer to set up a semiconductor plant in the state after they set up a new compressor manufacturing plant at the company's Sriperumbudur facility, Tamil Nadu. Youngsters will find all these offers intriguing and work in this field , which will bloom at the earliest. India might soon produce enough semiconductors to supply to all the major companies who have already set their own units in India. This will ultimately lead to the fall in price of electronic products since all the required materials are manufactured in India. Global chip shortage will produce enough jobs for people in India and will progress very soon.
REFERENCES:
- https://www.thehindu.com/news/national/karnataka/state-to-come-out-with-semiconductor-policy/article37286518.ece
- https://www.statista.com/topics/7797/global-chip-shortage/#dossierKeyfigures
- https://economictimes.indiatimes.com/industry/auto/auto-news/there-is-more-to-the-chip-shortage-in-auto-industry-than-meets-the-eye/articleshow/89151422.cms
- https://www.erieinsurance.com/blog/car-chip-shortage-2022
- https://www.bloomberg.com/news/articles/2021-10-12/apple-poised-to-slash-iphone-production-goals-due-to-chip-crunch
- https://www.androidpolice.com/apple-and-samsungs-smartphone-businesses-are-surviving-the-global-chip-shortage-in-ways-only-they-can/
- https://analyticsindiamag.com/india-semiconductor-chip-manufacturing/
Semiconductors, Telecom, ESDM: This sector encompasses Engineering R&D entities as may be defined in the prevailing Karnataka ESDM Policy/ Karnataka ESDM Special Incentives Scheme/ Karnataka Industrial Policy and/ or National Electronics Policy.
