India has made progress in terms of Chip Manufacturing in the Country. But still, it has a long way to go. As of 2020, India’s computer chip market has grown up significantly to $400 billion. And, more than 50% of the chips we have to import. So, how can India become a Chip Superpower in the near future?
Computer Chip – Integrated Circuits
Can you run a car without a chip? Can you communicate with someone on mobile without a chip? Can you save humongous data on mobile or computer without a chip? The common answer to all the above-mentioned questions is “No“. There is a shot up in the price of smartphones recently. We are unable to buy a smartphone because of the spiraling price tag. The dealers of four-wheelers are simply delaying in delivering a car to the customer who has already booked a car pretty long time ago. Gamers are facing a formidable challenge to buy a gaming console. Most car investors are scaling back their production. But why?
The common factor and the mother genesis of all these products like smartphones, cars, and gaming consoles is a tiny chip. There is an unprecedented global shortage of chips or semiconductors. There is a universal shortage of computer chips. This global chip shortage is deadly affecting significant industries. The consumer electronic or car manufacturers are impinged by this global acute scarcity of chips. This shortage affects us more than we realize because these chips control our universe now. The tech world is facing chipageddon.
We greedily need more chips because we are tilted totally on gadgets and online digital platforms. The demand for this chip is far more than its present availability of supply. The production is limited to all big players.
Chip Manufacturing and the World
Joe Biden wants 50 billion dollars to boost the US chip industry. America is spending heavily to expand its output and so he hikes taxes on the foreign earnings of American companies to raise this fund. 2 Trillion dollars is essential to raise this fund. He wants to invest 50 billion dollars spending heavily to expand their output and so he hikes taxes on the foreign earnings of American companies to raise this fund. He wants to invest 50 billion dollars in the production segment and research design. Biden called this chip a “ 21st Century Horse-Shoe Nail“. He discussed with all the lawmakers and logistics for a smooth and holistic supply.
China is investing hugely in semiconductors. In 2020 the cash flow into China’s semiconductor firms amounted to 27.6 billion through the primary and secondary markets a stunning 407% increase from the previous year.
China blindly depended on the US for semiconductors every year until recently. It imports more than 300 billion dollars worth of chips from American supplies. It was a good business for Americans too. America receives 25% of the Chinese market’s sales order, but in December 2020 Trump Administration banned technology exports to Chinese Company and Biden is yet to lift these restrictions. That is why Beijing has now embarked on a mission of self-reliance in semiconductors.
India is the world’s second-biggest mobile manufacturer. India could become a “One-stop shop” for tech manufacturers. India has joined the race to manufacture chips. India has given an offer of a billion for every chip-makers who makes in India. India thus offered a direct cash incentive of one billion. The government will also ready to provide insurance to chip manufacturers because there is a huge market of buyers lines up. Suppliers who manufacture computer chips in India will get a tag as ” Trusted Sources” and the chips are eligible to use or can be used in products ranging from CCTV cameras to 5G equipment everything in between. India is thus wooing global chip-makers but it is not so easy for India too.
About the Author
Hi! I am Indrajit Ganguly. People all across the globe know me by my professional nickname IG. I am a spoken English trainer in Kolkata and Blogger. I love to write blogs and articles that attract me.