Indian Semiconductor Industry: An Overview

Introduction:

India is one of the fastest developing countries in the world. India has a population of more than 1.3 billion people, and it has one of the youngest populations in the world. There is no doubt that India will play a crucial role in changing the dynamics of business and global trade in upcoming decades. Many foraging companies have achieved massive success in India. Still there is one industry which is finding it a bit difficult to find its foot in India. It is the semiconductor industry. Indian semiconductor industry is nothing when compared to the semiconductor industry of other countries. India hardly manufactures its chips, semiconductor fabrication equipment or other components of the semiconductor industry.

Indian Semiconductor Industry:

The global semiconductor industry is currently a little over $400 billion, and is expected to reach $500 billion by 2025. In comparison to this, India has negligible contribution to the semiconductor industry. Semiconductor manufacturing is very low in India. Indian Industry has imported components worth $50 billion in 2019. This shows that India is hugely dependent on the imports of the semiconductors. It can be dangerous in the long run, as the market situation is volatile as of now, due to chip shortage and growing tension between US-China.

What are the Problems for Indian Semiconductor Industry?

Various Indian companies have tried to establish semiconductor manufacturing units, which is known as Fab. Most of the times such projects didn’t take off due to one or another reason. At times the reason was lack of investment, skepticism about demand, lack of infrastructure, lack of high skilled employees, absence of vision policy, etc. India has developed back end testing, but still lacks in front end components needed by semiconductor manufacturers to manufacturer chips. All of these have made India dependent on the import of semiconductor chips.

Semiconductor Vision Policy:

What indian semiconductor industry needs as of now is a vision policy for companies, both domestic and international, explaining how India plans to move forward. The need for a vision policy is also needed as the demand for semiconductors is increasing exponentially in India, as the demand for electronic devices is surging since the past decade. As the demand will grow, India’s dependence on imports will only harm the industry more. Thus, Indian government and companies should find a way to establish domestic industries for semiconductor manufacturing. Secondary industries to the semiconductor industry are also needed to establish for smooth conduct of business. Indian companies can collaborate with international giants like Intel, Samsung to conduct a joint initiative project. If nothing is done soon, the Indian Semiconductor Industry will be in big trouble.

 

 

 

Overall Impact of Corporate Structure on a Company

Overview:

The corporate structure of a company, also referred to as organisational structure, is an important component of any business entity which determines the flow of communication, authority, and responsibility in an organization. A company's corporate structure has a huge impact on its success, on employees performance, and on other factors. For example, if we look at Intel corporate history and structure, it has always been about innovative approaches where any level of employee is allowed to give his/her contribution in the company's innovation policy and strategy.

Impact of Corporate Structure on Employee Performance:

There is no doubt that corporate structure has a direct impact on the performance of employees. For example, in a tech company like Intel, where continuous innovation is needed to keep up with development in the market, the role of employees is crucial. Since the time of Gordon Moore itself, Intel has focused to keep a balance between corporate structure and employee performance, giving employees the freedom to innovate and express their opinions on strategy and policy of the company. A well defined corporate structure like formal hierarchical structure benefits the employee performance, by clearly defining the roles and responsibilities, as well laying out the boundaries of authority. The vice-versa can affect the employee performance drastically. According to a research, employees preferred for them to experience job satisfaction. 8% of the respondents opted for centralized decision making, 36% indicated that there is a need for decentralized decision making system, 52% responded that group decision making would help workers in achieving job satisfaction and remaining 4% responded that individual decision making would help workers in achieving job satisfaction.

Impact of Corporate Structure on Company’s Performance:

Different corporate structures have a varying degree of impact on a company’s business performance. Hierarchical corporate structure has its own pros and cons with regard to business performance. Quick, low-cost decision-making and flexibility increase because of hierarchical structure. While too much dependence on the top level for decision making is something which is a major concern in a hierarchical structure. On the other hand the matrix structure allows accountability and responsibility at different levels, but it is a complex structure in a big organization, like big tech companies such as Apple, Intel, etc.

Impact of Organizational Structure on Business Productivity:

Organizational structure is what groups people in a certain way. There are various factors of organizational structure which affects the business productivity. Some of these factors are functional structure, divisional structure, team structure, influence of managers, level of creativity, growth opportunities etc. All of these factors contribute in determining the productivity of a company.

SUMMARY:

There is no perfect corporate structure. Every organisation should adopt the corporate structure which suits their business, employees, and stakeholders. If the corporate structure is incorporated without keeping these factors in mind, it can have drastic consequences for an organization.