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.
In short, the answer is yes. Being optimistic I can say that India can be a Chip superpower. That can be done only by encountering some specific problems. 1) First of all it can be understood to the laymen why the chip is needed. What is the usefulness of chips in each and every sector? 2) In order to make chips, semiconductors are needed. Semiconductors should be supplied in a good manner to the start-ups and the running industries. 3) As the production is getting limited day by day then what should be the substitute of the semiconductors. 4) The research and development should be done extensively.
Apart from that, the main reason behind the production and allocation of funds by the Government is a lack of finance. Obviously, we are responsible for that. We are not providing proper tax to the Government. The percentage of taxpayers is too low in India. On the other hand, some people are taking undue advantage of not paying taxes. Not only that but also some of them are trying to be exempted in spite of having a huge amount of foreign exchange and revenue transactions. Until and unless the Government gets the desired dividend from us how the Government can serve us? That we need to understand. If we stay beside the Government by paying taxes on time then India can not only be the chip superpower but also India can be the world’s largest superpower in each and every sector.
India has made progress in terms of Chip Manufacturing in Country.
As of 2020, India’s computer chip market has grown up significantly to $400 billion. 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.
It imports more than 300 billion dollars worth of chips from American supplies. 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.
So from my point of view if Indian Government takes some necessary steps to develop technology, may be in future India will be at top position.
I think India is far ahead in the chip industry now. But in order for India to be at the top in this chip industry, the Indian government needs to fulfill some important responsibilities towards Indian scientists or engineers. We now see that most scientists go abroad because they are not paid properly. The government should take care that every software engineer and scientist gets a smart salary so that they do not have to go abroad. And they need to be given all kinds of job opportunities, in a word, they need a good platform so that they do not go abroad for a better platform. India is a country that has the skills to compete with foreign countries like USA, China. India has a lot of bright students and a lot of talented students are being created. So in order to reach that stage in the digital world, all India needs an advanced education system and a good job market.
India is a Tech-savvy country, which is reflected in both business and government-tech adoption. As per the news article, India has become 2nd manufacturer of mobile phone in the world. It has been possible because of our Prime Minister’s “Made in India” campaign. In case of chip production India is doing really well with the available resources. In chip production two things are badly needed one is design and the other one is fabric. India has developed very high end skills for design but we are lagging in fabrication facilities, which require huge investments. Because of this investment issue, India is lagging far behind from USA and China, who are the leaders in chip manufacturing. A fabrication facility for chip manufacturing requires on an average $8 to 10 billion of investment. Very few investors are willing to invest that much of amount but before make any investment they need to check the commercial viability of the project, which is not very promising in India. As a result, the Govt of India is offering 1 billion in cash to the private companies to set up manufacturing unit. Most of the chip designers in India outsourcing their products to third-party for fabrication. In conclusion, I would say chip designing and fabrication is a highly capital intensive business. It requires a developed ecosystem to run the business successfully. USA and China are the leading countries in this sector because they have the desired ecosystem. So, if India really wants to make a progress in this sector, the Govt should think how to build that ecosystem, which consists of materials, machinery, manufacturing, testing, packaging and sales. This complete ecosystem does nor exist in India yet. In fact, the Govt tried before to develop this ecosystem but failed miserably. We are hoping thar very soon Govt will build up this ecosystem system and we will be in the no 1 position as a chip manufacturer in the world.
Firstly this is an electronics era. Chips are not only bounded in mobiles, cars or software and hardware based technologies but also in our daily lives (Like, the lights or fans we are using daily and also the things we are using in kitchen or even in washroom). So, we are going to be used to with electronics rather than electrical substances.
Now about the supplies in our country. See, India is a third world country so whether in the case of hardwares or in softwares (or even recently the vaccines) the more percentage amount is exported. So there must be a crisis. Secondly, we are not getting a proper amount of semiconductors or chips produced just only in India because of brain drain due to lack of salary or lack of infrastructure.
For this point there is also a reason and that is trust issue. Being an electronics engineer I have come to know about a humongous number of Indian electronics companies and providers . You know there are lots of entrepreneurs who dream to startup with manufacturing or providing this electronics or semiconductor business. Then my question is why still there is lack of supplies?
I think we are smart enough to answer this question. If we put this smartness in believing our ‘desi products’ and government help those entrepreneurs and invest sufficient money for the companies then no other country can drub the superpower of India in manufacturing chips.
Lastly, thank you! I have come to know that government is ready to provide insurance for the manufacturers from this content, it’s a very good news. Let’s always hope for the best.
Now a days, Technology is the backbone of each & every industry. And a little thing can control the whole. That is none other than a Chip. Like all other Developed Country India is also focusing on Chip superpower. Our government is investing on this subject. I have a little idea about this topic. But how far i get to know from your article ,that not only India ,US China both are investing a lot on this industry. As we know, India is 2nd biggest smartphone manufacturer country in the world, And so obviously India has also a lot of requirements of chips, and Our government is also investing in this market. So that ,I do believe India will be a chip superpower.
I don’t know much about this ‘Chip’ industry. I believe not only India but any country who can keep aside their political agendas,diversities and start focusing on improvement can become a superpower in any aspect. Politicians focusing on their game, common people talking about politicians’ games. That’s the usual scenario of India. Nobody talks about development either a politician or a common person. To us, clean drains, smooth roads define development. I am not blaming us, in a country like India,which is still a third world country with so many issues, these are common developments every person irrespective of financial category can be agreed upon. But we have to think beyond that. In a nutshell, our government is utter bullshit. Firstly, we are happy with small developments so it is obvious that they will not think that much about such big developments. Secondly, if we start making our own semiconductors in India, that doesn’t mean chip will be cheap for us to buy. They will first prefer to sell it to foreign countries and then 1st copy products to Indian market. Last but not the least, if we start making chips, if Indian mobile phones,however good it is,become cheaper to buy,still we won’t buy that. We will be inclined towards foreign products. So taking all these factors into consideration,we can say,it is next to impossible for India to be a superpower in Chip industry atleast in near future untill Renaissance happens in Indian politics
Yes, I do believe that India can reach in that point at technology. Indian has the ability to compete with other foreign countries like USA , China . But there is some problems which India has to manage. Indian Government should look after the education system ,the salary which they provide to a scientist or engineer. If a engineer or a scientist can’t get a smart salary,they will move to the foreign countries for the better platform. India has lots of bright students and genius minds. So all India needs a better education system , a better job market to reach in that point in digital world.
Yes, I do believe India can do great marketing in technological field. India have a huge population and genius minds but the fact is because of our diminished job market and low salary structure, most of the brilliant students are trying to settle in abroad.
If Indian Government tries to make some genuine changes in the education system, job market, etc then might be India can give a great competition to most of the western countries and China too.
India can be at top position in chip industry if Indian government pay respect to the Indian scientists, software engineers pay them a smart salery so that they don’t have any need to move to other foreign countries. Many of Indian great people’s like sunder pichai are at good portfolio at foreign countries cause they don’t get a glorious platform in India. So, government need to focus on that. There is no doubt India is a country where everything is possible what need to fulfill this is to keep kind and thinking of development to government of india. Also here is need to change the education system that is going right now in schools to servive in digital world.
I think India could be one of the tech giants of the wold if the government can focus on many things to make changes in the system. In this field China has already developed a lot and basically it is now the big bull of the technical world. So if India would like to be among the top in this rat race then they have to hit the balls really hard. Top competitors in this market are already very much well equipped with human resources as well as other resources but India need to find the missing pieces like most of the well qualified technical experts are up to join the big USA based companies like Microsoft, Intel, AMD etc, though quantity of Engineers are enough in this country but most of them lack in quality due to many things like reservation system, mushroom like growth of private engineering colleges, poor education systems etc. There is no such technologically advanced Indian merchandise in the global technical market still now. So what i believe if India moreover Indians can want , they turn any metal into gold but for that Entrepreneurs has to come up as well as Govt. has to come up with policies and opportunities for them to build a technologically advanced country, what China has already proved .