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.
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.
