Why does India lag in semiconductor manufacturing?

India needs to fund more research at government level in the areas of complex chip design & micro electronics and setup more advanced research labs at all major IIT’s and IISc. India is lagging behind China in this field of research.

Why is it difficult to manufacture semiconductors?

Older semiconductors are easy to produce for a whole range of reasons, but one of the most significant factors that make it challenging to produce modern semiconductors comes down to shrinking the image of the design onto the wafer.

Why is India behind electronics?

While India has done well in terms of chip design and electronics manufacturing, there have been challenges in setting up of Semiconductor Wafer Fabrication (FAB) units in India for a long time. This is due to multiple factors, including not just the lack of infrastructure and skilled labour in the country.

Why is there a shortage in semiconductors?

While the shortage is partly due to stronger demand for more advanced chips from the consumer electronics and computer industry through Covid-19, semiconductor content in the auto industry itself is surging driven by the adoption of technologies such as driver assistance systems and autonomous driving.

Are IC chips made in India?

India has two fabs — SITAR, a unit of the Defence Research and Development Organisation (DRDO) in Bengaluru and a semiconductor laboratory in Chandigarh, which build silicon chips for strategic purposes like defence and space and not for commercial use.

Why does India lag in China?

The single most important factor explaining this difference is the relatively poor performance of Indian industry. Whereas the share of industry in China’s GDP rose from 42 per cent in 1991 to 51 per cent in 2001, it remained virtually stagnant in India.

Which country is the largest producer of chips?

Taiwan is the country that produces the most number of chips globally, thanks to TSMC – Taiwan Semiconductor Manufacturing Company, which controls 51\% of the global chip market.

What are the challenges of semiconductor wafer fabrication in India?

While India has done well in terms of chip design and electronics manufacturing, there have been challenges in setting up of Semiconductor Wafer Fabrication (FAB) units in India for a long time. This is due to multiple factors, including not just the lack of infrastructure and skilled labour in the country.

Can India become a dominant player in semiconductor chip manufacturing?

Clearly, there is no dearth of talent when it comes to India becoming a dominant player in semiconductor chip manufacturing.Yet, the country has struggled to find a way to establish fab units needed for large scale manufacturing. Now, with the rising demand for electronics, India is a large net importer of semiconductor chips.

Are startups disrupting the semiconductor industry in India?

While large scale semiconductor manufacturers face challenges to take off, several startups building chips for embedded systems like IoT and telephony on a much smaller scale are also disrupting the scene. There are many prominent startups here like Signalchip, a semiconductor company also based in Bengaluru, which rolled out 4G and 5G modem chips.

Why is it so hard to set up a chip factory in India?

One of the biggest hurdles in setting up fab manufacturing units is the fact that it requires massive investment. In addition to the huge cost, running in billions of dollars, manufacturing even a single chip requires hundreds of gallons of pure water, which may also be hard to find in India in the required quantities.