Why can’t India, which is ahead of others in technology, make its own semiconductor chip?
India lags behind countries like the US, China or Japan in terms of technology. But the advancement of technology in India is accelerating in the current period. This is benefiting the Indian people now, and will continue to do so in the future. India can strengthen its technology in the future along with other technologically advanced countries. The processor semiconductor chip is not yet manufactured in India, there are many reasons behind it which we will learn in the following analysis.
In earlier times, it seemed impossible to make mobile in India, but over time, with the advancement in Indian technology, the plants of oppo, mi, vivo etc companies stood in India. This seemingly impossible thing has come true in India today. As a result, people started getting mobiles with good features at low prices. People started saving money and they started understanding new technology.It is used in semiconductor chip mobile, computer and other electronics devices. The demand for semiconductor chip is very high nowadays and there are big businessmen like TATA, Ambani in India, yet it is impossible to set up a semiconductor chip manufacturer plant in India.
Why is it impossible to manufacturer semiconductor chip in India?
As technology advances in the world, so do the devices that people use. Therefore, this semiconductor chip is used in mobile, computer as well as bulb, fridge etc devices in today’s age. This chip is used in all electronics devices today. Therefore, the demand for this chip is high in the electronics market. But this chip is made in countries that can only be measured on the fingers, but the electronics devices that are made using this chip are widely used in the whole world.
Due to the widespread use of semiconductor chip, the industry is more than B 600 billion. There are many big name businessmen in India, but the semiconductor chip manufacturing plant has not been set up yet. From the beginning, only fully developed countries in technology like USA, Taiwan, Japan, Chai are participating in this industry.
During the recent lockdown, many companies were shut down for public health reasons. During this time there was a great crisis in the world because of the epidemic and the people had to face a lot of financial problems. A total of 170 major industries in the world shut down during this period.This included the semiconductor chip manufacturing industry. People’s lives went smoothly after the lockdown period was over, but after this these people started feeling short of some things as the companies were closed for more days.
India ranks 2nd in terms of population compared to other countries. As a result, the Indian market is very large compared to other countries. Many outside companies are selling their products in the Indian market as they are benefiting from the Indian market. Electronics are widely used by the Indian people, but the semiconductor chip used in them is in short supply. The shortage led to a decline in electronics production. The demand for this chip is high in India and these chips are not manufactured in India.
The total semiconductor chip industry in India now stands at Rs 1 lakh crore, which is expected to exceed Rs 6 lakh crore by 2026, indicating the need for more semiconductor chips in India. It is being discussed that steps should be taken in India to build a semiconductor chips manufacturing industry in the near future. But it is possible to say, but it is impossible to do, we will learn later what is behind thise.
Reasons why there is no semiconductor chip manufacturer industry in India.
1. Its very expencive.
This is the main reason behind non-manufacture of semiconductor chips in India. This is because setting up a semiconductor chips manufacturing plant requires a lot of investment. It costs at least to 8 to b 10 billion dollars to set up a basic semiconductor chips manufactureing plant and then invest millions of dollars in machining fixes so no chip plant has been set up in India yet. You may be wondering if big businessmen like Ambani, TATA, Birla can set up this plant in India with such an investment, but this has not been possible in India yet.
This is not the first time that a processor has made a big investment in a chip manufacturing company, as the industry has to make similar investments as technology changes. Samsung has set up its own semiconductor processor chip maker in South Korea at 14 14.7 billion, and companies like Intel and TSMC spend 30-35 billion annually to update the technology in their processor. Also, in this case, the latest technology is constantly changing, so companies have to make permanent investments. No such new company in India can set up this plant with such a huge investment.
2. It Complex and very high failure rate.
Semiconductor chips are more likely to fail. This chip contains arbo trangister in 1 sqinch. The gap in this tarngister is measured in nano meter. Nano meter is the arbova part of 1 meter. So it doesn’t have to be made very neatly while manufacturing, it has to bear the loss of billions of dollars. Similarly, there is a lot of competition in the industry, with US government spending b 20 billion, Intel spending 40 40 billion and TSMC spending 100 100 billion on their advanced fabrication technology. No company in India is keen to invest in a high risk and competing business.
3. Lack of skilled People.
There is nothing wrong with creating a semiconductor chip and there is a high chance of failure in this filed. Well-educated and skilled people are needed to work in this filed, as well as workers who are aware of the latest advance technology that is going on and coming up. But India does not have the skilled workers that India has in countries like USA and China, and even if India has skilled person, it is still not possible for Indian companies to get them to work in that filed.
4. Poor infrastructure.
Silicon powder is very useful for making semiconductor chip and there is no shortage of it in production. The industry needs 7×24 hours of electricity and even clean water. India has occasional power outages, salt water is widely available in India, it takes a lot of time and money to clean it, there is a shortage of all these things, if the water and electricity supply is cut off for a while in this case, the company will face huge losses. It takes. As a result, no other company in India is setting up a semiconductor chip manufacturer plant.
5. Not advance Technology In India.
India is a technologically advanced country, but lags far behind in chip processor technology. In today’s era, a company like Apple has used 5 nm chip set in iphone 13 and Apple will use 3 nm chip in the next latest iPad. But such advanced technology has not yet emerged in India. In India, if a company overcomes all the problems and sets up a company that manufactures chip processor, then this company will not be able to manufacture chips with 5 or 3 nm latest advance technology. If a new company is set up in India, these companies will be able to manufacture 15 – 18 nm chips, as these chips are very old technology, will not be used by another company and manufacturing these chips will not be useful to Indian companies. Due to this it is impossible to set up a semiconductor chip manufacturing company in India.
Given the above, it is impossible to manufacture a semiconductor processor chip in India, but after some time it will be possible in India. The purpose is to set up a semiconductor chip manufacturing plant in India in another 6-7 years.