INDIA’S SEMICONDUCTOR DREAMS!
Covid 19 brought the world to its knees in a variety of ways. One unimaginable area to be impacted was the chip supply chain. The chip industry has the capability put large number of industries in a disarray. And that is precisely what happened across the face of this earth. For the nations having futuristic ambitions or huge regular requirements, this was a bold from the blue. The semiconductor supply chain breakdown could not have been imagined in the wildest dreams per Covid 19. The nightmare can be repeated, on account of a geopolitical issues or the who knows there can be one more pandemic or any other global health hazard.
Given India’s ambitions and the disruption faced, it is making a high-stakes bid to join the global semiconductor race. America is trying to regain its earlier glory in this industry and China wants to become the reigning deity trying by catching up as much as it can with Taiwan. Western Europe would also not like to left behind. It is highest level engineering tech chess game, which has be pulled in our favour to make 21st century as ours. India has decided to put $10 billion on the platter. What have been our strengths and weaknesses and how do we work out our game plan. It might take decades to come out as winner.
The returns we might start seeing even earlier, if we were to strategize everything correctly to hit the bull’s eye. The global competition is huge. If we were to go by the financial outlays US passed the Chips and the Science Act that includes $52bn grant for chipmaking and connected research. The EU is looking to build semiconductor resilience with its own Eruo 43bn Chips Act. The chip wars seems to be the next big tech war for a totally different type of supremacy. Today, manufacturers in a handful of east Asian countries rule the roost; Taiwan, China and South Korea. ”Chipmaking could be financially lucrative but precision engineering has not been traditional national strength.”
Foxconn, the Taiwanese giant has teamed up with the Indian group Vedanta to build a semiconductor the first semiconductor plant in India. Singaporean group IGSS has signed a MOU with TN for a very likely wafer factory to be completed in three years. The Israeli group ISMC has signed a letter of intent with Karnataka to build a $3bn semiconductor chipmaking plant. India today provides a geographical advantage as an alternative to China. But US, UK and Europe are laying out billions to subsidize the onshoring of chipmaking. If by chance, there is over production as a result of this race, what would be the results thereof. India needs to move exceptionally quickly and decisively, if it wants to have a fighting chance to achieve the goal.
CHIP WARS WOULD BE FOUGHT TO THE FINISH, THE WINNER WILL GAIN IMMENSE COMPETITVE ADVANTAGE.