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<ul><li>The global $450 billion <keyword id="145965" type="TECHNOLOGY" weightage="20" keywordseo="semiconductors">semiconductors</keyword> industry got blindsided — due to the global pandemic — after a massive demand for semiconductors.</li><li>The crunch led to supply chain issues as the industry relied on a few giant players.</li><li>Ford, Nissan, Volkswagen, Fiat Chrysler and Toyota were some of the top automakers that curtailed production amid a global semiconductor shortage.</li><li>Operations of mobile manufacturers Lava and Micromax were almost stuttered to a halt after its <keyword id="423461" type="PERSON" weightage="20" keywordseo="chipset">chipset</keyword> supplier, MediaTek, ran out of stock.</li></ul>A few months back, when the companies worldwide started recovering from the pandemic-hit lows, they had no idea that another challenge was waiting for them. From electronic appliance makers to car manufacturers and mobile makers — all had to hold back the production after the $450 billion industry for semiconductors got ravaged by the after effects of the Covid-19 pandemic. A massive surge in demand for consumer electronics, globally, due to work from home practices adopted by firms and a sharp uptick in personal vehicle sales amid the virus fear caused the crisis. The semiconductors form the DNA of a wide variety of new-age gadgets like smartphones, computers, industrial equipment and cars. They are also sought for emerging markets of AI, computing and advanced wireless networks. <cmsannotation type="cmsannotation" annotationid="Manufacturers had to shut production plants" comment="subhead" text="Manufacturers had to shut production plants">Manufacturers had to shut production plants</cmsannotation> This could not have come at a worse time for the beleaguered businesses — which just began to show the signs of recovery, and the sales were beginning to rebound after a torrid first half. In December, India's largest automotive components maker Robert Bosch was grappled with challenges<a href="https://www.bloombergquint.com/business/bosch-india-flags-severe-shortage-of-critical-components-to-indian-automakers"> after a severe shortage</a> of imported components, hampering its ability to cater to the automotive market demand in the fifth largest automobile market worldwide. Just days after Bosch, One of India's largest automakers Mahindra &amp; Mahindra, <a href="https://qz.com/india/1959077/ford-india-mahindra-mahindra-hit-by-semiconductor-shortage/">said </a>it was bracing itself after the recent disruption caused by the industry's semiconductors shortage. "Operations of the company in the automotive sector will be affected by global supply shortage of micro-processors (semiconductors) used in electronic control units (ECUs) which are supplied by Bosch," automaker Mahindra said in a <a href="https://qz.com/india/1959077/ford-india-mahindra-mahindra-hit-by-semiconductor-shortage/">statement</a>. Ford, Nissan, Volkswagen, Fiat Chrysler and Toyota were some of the top automakers that curtailed production amid a global semiconductor shortage. The shortage impacted production in other industries too, such as smartphones and electronics. Operations at mobile manufacturer Lava and Micromax were almost stuttered to a halt<a href="https://economictimes.indiatimes.com/industry/telecom/telecom-news/mediatek-to-resolve-chipset-shortage-in-india-says-chairman/articleshow/79672229.cms?from=mdr"> after its chipset supplier MediaTek </a>ran out of stock. The chip shortages also forced Apple to push back the rollout of its latest lineup of iPhones until early November. <cmsannotation type="cmsannotation" annotationid="What are semiconductors, and why did companies run out of them in 2020?" comment="subhead" text="What are semiconductors, and why did companies run out of them in 2020?">What are semiconductors, and why did companies run out of them in 2020?</cmsannotation> Semiconductors are typically silicon chips that perform control and memory functions in products ranging from computers and cellphones to vehicles and microwave ovens. The world saw an unprecedented demand for servers, internet connectivity and cloud usage as online collaboration grew massively during work from home. And according to the EY report, the semiconductors industry was already facing a demand-supply crisis and the delay in imports from China after the Indo-China clash at the Galwan Valley added fuel to the fire. The OEM’s faced <a href="https://www.thehindu.com/business/Economy/ladakh-face-off-industry-flags-delay-in-china-imports/article31918011.ece">massive supply chain issues</a> after the government implemented curbs on imports from china. The industry also relied on a few global players — which led to the crisis after a huge demand surge. China and Taiwan own a significant portion of the semiconductor manufacturing market in the world. “Semiconductor manufacturing is a complex global intertwined ecosystem, which has led to a supply chain that is vulnerable to macroeconomics, geopolitics and natural disasters,” the report added. The auto industry is using more semiconductors than ever before in new vehicles with electronic features such as Bluetooth connectivity and driver-assist, navigation and hybrid-electric systems. According to data research firm International Data Corporation (IDC) forecasts that globally, the mobile phone semiconductor revenues will grow by 11.4% in 2021 to $128 billion. Here’s how the demand for semiconductor stacks up around industries in India <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Category </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Demand Share </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total Value </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Communication </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">33% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$136 billion </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Computer </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">28.50% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$117 billion </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Consumer </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">13.30% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$54.7 billion </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Automotive </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">12.20% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$50.2 billion </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Industrial </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">11.90% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$48.9 billion </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Government </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.30% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$5.2 billion </td></tr></tbody></table>Source: Semiconductor Industry Association, 2020 <cmsannotation type="cmsannotation" annotationid="Can you set up a chipset business in India?" comment="subhead" text="Can you set up a chipset business in India?">Can you set up a chipset business in India?</cmsannotation> The EY report highlighted that the semiconductor manufacturing process requires unique and sometimes scarce raw materials and chemical substances. Due to their unique and specialised character, these tend not to be widely available and can sometimes only be mined in conflict areas. The scarcity of semiconductors in the past few months brutally exposed India's original equipment manufacturers' soft underbelly — their heavy reliance on imported components. The government has also introduced an ambitious production-linked incentive (PLI) schemes to encourage in-house production. The most important here is semiconductors or chips that form the central component of items from auto to laptops and mobile phones — as the current disruptions showed, it is an area where we can ill-afford to depend on others. <div type="image" title="Capture" msid="81137751" hostid="261"></div> Although the country has developed expertise in chip designing, it still lacks fabrication facilities, requiring huge investments. Microprocessor chips are produced in high technology facilities called semiconductor fabrication units or simply FAB units. India currently has a limited number of fabless startups and companies with state-of-the-art R&amp;D centres focusing on chip design. <a href="https://www.deccanherald.com/business/is-semiconductor-manufacturing-in-india-an-unworkable-project-863338.html">Reports</a> indicate that semiconductor fabs have investments starting around $8 billion, and the numbers climb rapidly. The business also requires hefty running costs, and technology needs to be upgraded typically every 3-4 years. This wouldn’t be the first time India would try to build semiconductors fabrication units. Earlier in 2006, a <a href="https://www.business-standard.com/article/companies/semindia-infosys-may-sign-mous-with-andhra-today-106021601088_1.html">Bangalore-based SemIndia signed a contract </a>with the Andhra Pradesh government to set up a wafer manufacturing unit. For which, it was allocated 1,200 acres of land, but the $3 billion project could not take off. The government suffered a loss of ₹300 crore. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/nurecas-100-crore-ipo-heres-how-to-check-share-allotment-status/articleshow/81135236.cms" data-type="tilCustomLink">Nureca’s ₹100 crore IPO: Here’s how to check share allotment status</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/defense/news/india-signs-usd-50-million-defence-loc-agreement-to-boost-maritime-capabilities-of-maldives/articleshow/81135673.cms">India signs USD 50 million defence LoC agreement to boost maritime capabilities of Maldives</a>

India needs chipset manufacturers — lots of them. Here is why.

<ul><li>India set out a $10 billion push to bring <keyword id="6451058" type="General" weightage="20" keywordseo="semiconductor" source="Orion">semiconductor</keyword> chipset manufacturing in the country back in 2021. </li><li>Now, it seems that the government’s plans are coming to fruition with the first tangible multi-billion dollar investment announcement. </li><li>Mining giant <keyword id="28423" type="General" weightage="50" keywordseo="vedanta" source="Orion">Vedanta</keyword> has much bigger plans – at $20 billion – to set up a semiconductor and display manufacturing facility in the country. </li></ul><keyword id="13212492" type="General" weightage="80" keywordseo="ismc" source="Orion">ISMC</keyword>, a joint venture between Abu Dhabi-based <keyword id="3315695" type="General" weightage="50" keywordseo="next-orbit-ventures" source="Orion">Next Orbit Ventures</keyword> and Israel’s <keyword id="2489740" type="General" weightage="50" keywordseo="tower-semiconductor" source="Orion">Tower Semiconductor</keyword>, has announced that it has signed a memorandum of understanding (MoU) with the Karnataka government to set up a semiconductor chip manufacturing plant. According to a <a href="https://twitter.com/investkarnataka/status/1520656115276550144">statement</a> by the Karnataka state government, ISMC will invest up to $3 billion in the state for its chip manufacturing facility. <keyword id="28115" type="General" weightage="80" keywordseo="intel" source="Orion">Intel</keyword>, the company which powers most of the computers in the world, has announced plans to acquire Tower Semiconductor, one of the partners of the ISMC joint venture. <div type="Article" hostid="261" msid="91100753" title="India is reportedly in talks with TSMC, Intel and other semiconductor giants to set up local production plants in the country" mstype="2" mssubtype="0"></div> <cmsannotation type="cmsannotation" annotationid="India’s semiconductor plans get a big, needed boost" comment="subhead" text="India’s semiconductor plans get a big, needed boost">India’s semiconductor plans get a big, needed boost</cmsannotation> India has been stressing the need for diversifying its supply chain when it comes to semiconductor chips, <a href="https://www.businessinsider.in/policy/economy/news/india-makes-a-10-billion-bet-to-woo-chip-makers-at-home/articleshow/88298295.cms">announcing a massive $10 billion</a> (approx. ₹76,000 crore) plan to attract chipmakers from around the world to set up shop in India. Now, it looks like those plans are coming to fruition with ISMC’s $3 billion announcement. Earlier, India was <a href="https://www.businessinsider.in/tech/news/india-is-wooing-tsmc-intel-and-globalfoundries-to-set-up-semiconductor-plants-in-the-country/articleshow/91100753.cms">said to be in talks</a> with semiconductor giants like <keyword id="171929" type="General" weightage="50" keywordseo="tsmc" source="Orion">TSMC</keyword>, Intel and GlobalFoundries to set up shop in India. <cmsannotation type="cmsannotation" annotationid="Vedanta in ‘advanced talks’ with three major Indian states" comment="subhead" text="Vedanta in ‘advanced talks’ with three major Indian states">Vedanta in ‘advanced talks’ with three major Indian states</cmsannotation> Indian multinational mining giant Vedanta could also be looking at diversifying its business by jumping onto the <keyword id="712417" type="General" weightage="20" keywordseo="semiconductor-manufacturing" source="Orion">semiconductor manufacturing</keyword> bandwagon. According to a <a href="https://www.reuters.com/world/india/chip-consortium-ismc-plans-3-bln-plant-indias-karnataka-2022-05-01/">Reuters</a> report, the Mumbai-based company headed by founder Anil Agarwal is looking at three major Indian states – Gujarat, Maharashtra and Telangana, to set up a semiconductor chip manufacturing plant. The report further adds that Vedanta has planned an investment outlay of $20 billion for its semiconductor and display manufacturing plans. This is double that of the Indian government’s PLI (production-linked incentive) scheme for chipmakers. The Indian government has stated that the Indian semiconductor market is forecast to grow four-fold from $15 billion in 2020 to $63 billion in 2026. With the ongoing global semiconductor chipset shortage and the increasingly volatile geopolitical scenario between the US and Taiwan, and China, on the other hand, the Indian government’s urgency to build up domestic semiconductor manufacturing capabilities is understandable. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/india-is-wooing-tsmc-intel-and-globalfoundries-to-set-up-semiconductor-plants-in-the-country/articleshow/91100753.cms">India is reportedly in talks with TSMC, Intel and other semiconductor giants to set up local production plants in the country</a> <a href="https://www.businessinsider.in/policy/economy/news/india-makes-a-10-billion-bet-to-woo-chip-makers-at-home/articleshow/88298295.cms">India makes a $10 billion bet to woo chip makers at home</a> <a href="https://www.businessinsider.in/business/corporates/news/the-big-boss-of-indias-largest-consumer-company-is-worried-about-stagflation-and-unprecedented-inflation/articleshow/91251341.cms">The big boss of India's largest consumer company is worried about stagflation and unprecedented inflation</a>

Semiconductor manufacturing in India gets a boost with ISMC’s proposed $3 billion plant in Karnataka

<ul><li>The Indian government is reportedly planning a ₹76,000 crore incentive package for semiconductor companies.</li><li>It plans to set up over 20 semiconductor units in India over the next six years.</li><li>The new package comes amid the global <keyword id="10561060" type="General" weightage="20" keywordseo="semiconductor-shortage" source="Orion">semiconductor shortage</keyword> that’s affecting every major industry.</li></ul>Incentives worth ₹76,000 crore are reportedly being planned for <keyword id="712417" type="General" weightage="20" keywordseo="semiconductor-manufacturing" source="Orion">semiconductor manufacturing</keyword> in the country. The government plans to set up over 20 semiconductor design, components manufacturing, and display fabrication (fab) units in India over the next six years, according to a <a href="https://economictimes.indiatimes.com/industry/cons-products/electronics/india-plans-a-76000-cr-red-carpet-for-semiconductor-companies/articleshow/88196754.cms">report</a> by ET. This scheme is expected to be sent for approval to the Cabinet next week, and details to follow soon after. Once the cabinet approval arrives, the semiconductor policy will be made and applications sent for companies to invest. The Indian government has plans to set up two fab units for semiconductor displays, and 10 units each for designing and manufacturing components. This could pave the way for India to become an electronics hub especially at a time when the <a href="https://www.businessinsider.in/tech/news/intel-ceo-says-global-chip-shortage-will-not-end-before-2023/articleshow/87200140.cms">semiconductor shortage</a> is affecting industries globally. Semiconductors are key components used in manufacturing various kinds of electronic devices. The worldwide shortage is currently affecting almost every major industry from smartphones, laptops, cars, appliances and more. This is causing a shortage of exports on units, prices going high, and a limited supply of products. According to a <a href="https://www.gizmochina.com/2021/12/09/smartphone-brands-shift-to-fewer-camera-sensors-due-to-semiconductor-shortage-omdia/">report</a> by Omdia, smartphone companies are now moving to higher resolution image sensors but with fewer cameras due to the semiconductor shortage. The semiconductor policy is said to “help deepen India’s manufacturing base,” according to the ET report. Once the cabinet approval arrives, the ministry of electronics and information technology (MeitY) will finalise the details and invite applications from interested companies, the report added. The Indian government’s previous incentive packages for semiconductor manufacturing did not see any takers so with another big package in plan, it’s interesting to see how this one pans out. Companies like Samsung and Intel recently made some big investments in the US. Samsung announced it will build a $17 billion semiconductor factory in Texas. Intel is also spending $20 billion to build two new fab manufacturing plants in Arizona. If India too gets a global company to invest here, it would reduce dependence on importing semiconductors from outside, and also pave the way for local manufacturing in the country. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/news/oppo-find-n-foldable-smartphone-to-launch-on-december-15/articleshow/88179557.cms" data-type="tilCustomLink">Oppo’s first foldable smartphone ‘Find N’ to launch on December 15, confirms Pete Lau</a> <a href="https://www.businessinsider.in/tech/news/italian-researchers-develop-flying-humanoid-robot-like-iron-man/articleshow/88178772.cms" data-type="tilCustomLink">Italian researchers have come close to building an Iron Man-like humanoid robot with jet engines</a>

Indian government to offer ₹76,000 crore incentive package for semiconductor manufacturing in India, report says

<ul><li>China witnessed its biggest-ever monthly decline in chip manufacturing in August . </li><li>The slump in chip production in China is coming as both India and the US ramp up efforts to bolster local chip manufacturing.</li><li>The Gujarat government has partnered <keyword id="28423" type="DOMAIN" weightage="20" keywordseo="vedanta" botkeyword="" source="ET" sourcekeytype="COMPANY" meta.keywordsubtype="EQ" meta.aliasname="vedanta" meta.entityname="Vedanta Ltd." meta.entityid="13111" meta.seoname="vedanta-ltd">Vedanta</keyword> and Foxconn, aiming an investment of ₹ 1.54 lakh crore to produce semiconductors. </li></ul> As India and the US double down on domestic <keyword id="712417" type="General" weightage="100" keywordseo="semiconductor-manufacturing" source="Orion">semiconductor manufacturing</keyword>, China witnessed its biggest-ever monthly decline in chip manufacturing in August owing to Covid restrictions and weakening demand. According to the South China Morning Post, the production of integrated circuits (ICs) slumped 24.7 per cent year on year to 24.7 billion units, marking the largest single-month decrease since 1997. This is also the second consecutive month of decline for chip manufacturing. In July, the output nosedived 16.6 per cent to 27.2 billion units. Local output of microcomputers fell 18.6 per cent to 317.5 billion units in August. In August, domestic manufacturing activity contracted for the first time in three months, the report mentioned. A record 3,470 chip-making companies "went out of business in the first eight months of the year", according to statistics from business database platform Qichacha. The slump in chip production in China is coming as both India and the US ramp up efforts to bolster local chip manufacturing. The Gujarat government has partnered Vedanta and Foxconn, aiming an investment of ₹ 1.54 lakh crore to achieve self-reliance in the field of semiconductor manufacturing. India's semiconductor component market is likel to reach $300 billion in cumulative revenues by 2026, as 'Make in India' and production-linked incentive (PLI) schemes will boost local sourcing of semi-components in the coming years, according to the report by the India Electronics &amp; Semiconductor Association (IESA) and Counterpoint Research. The Indian government has announced an outlay of ₹ 76,000 crore (around $10 billion), under its PLI scheme, separately for the development of a semiconductor and display manufacturing electronics ecosystem. Meanwhile, US President Joe Biden has signed into law the Chips and Science Act, which provides nearly $52 billion in semiconductor production incentives. Intel has kicked off work on the new $20 billion semiconductor plant in the Ohio state in the US. Samsung has floated an idea of investing nearly $200 billion to build 11 more chip plants in the US over the next two decades. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/idbi-trustee-asks-rcap-administrator-to-withdraw-allegations-of-breach-of-confidentiality/articleshow/94280808.cms">IDBI Trustee asks RCap administrator to withdraw allegations of breach of confidentiality</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/health/news/obesity-is-linked-to-long-covid-risk/articleshow/94270032.cms">Obesity is linked to long Covid risk</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/global-artificial-intelligence-market-to-reach-450-bn-in-2022/articleshow/94269565.cms">Global artificial intelligence market to reach $450 bn in 2022</a>

China's chip output shrinks as India, US ramp up local manufacturing

<ul><li>Akhter led a <keyword id="145965" type="General" weightage="20" keywordseo="semiconductors" source="Orion">semiconductors</keyword> trade mission to <keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword> and met top government officials in the Capital.</li><li>India's semiconductor component market is likley to reach $300 billion in cumulative revenues by 2026. </li><li>Last year, the government announced a ₹ 76,000 crore performance linked incentive (<keyword id="53367" type="General" weightage="50" keywordseo="pli" source="Orion">PLI</keyword>) scheme in the semiconductor sector . </li></ul> As the US and India join hands to address semiconductors supply chain challenges, the <keyword id="99719" type="General" weightage="50" keywordseo="joe-biden" source="Orion">Joe Biden</keyword> government's offer to provide assistance to India to build up its semiconductor manufacturing capacity appears to be just lip service, Chinese state-run publication Global Times has said. US deputy assistant secretary, South and Central Asia, Afreen Akhter, during her visit to India this week, said they will help India boost its semiconductor manufacturing capacity. Akhter led a semiconductors trade mission to India and met top government officials in the Capital. According to Global Times, the announcement is designed to "lure India into a geopolitical game to exclude <keyword id="1334" type="General" weightage="50" keywordseo="china" source="Orion">China</keyword> from the global chip industrial chain, rather than a commitment with real investment plans to support India's chip manufacturing." The report mentioned that the CHIPS and Science Act, that aims to provide $52 billion in subsidies for chip manufacturers to build fabrication plants in the US, is an attempt to build up an industrial chain focused on the interests of the US, "which is unlikely to bring benefits to India." India has introduced a series of preferential policies to attract chip companies to invest in production in the country. Last year, the government announced a ₹ 76,000 crore performance linked incentive (PLI) scheme in the semiconductor sector to boost local manufacturing. As India and the US double down on domestic semiconductor manufacturing, China witnessed its biggest-ever monthly decline in chip manufacturing in August owing to Covid restrictions and weakening demand. That was also the second consecutive month of decline for chip manufacturing. In July, the output nosedived 16.6 per cent to 27.2 billion units. Meanwhile, the Gujarat government has partnered Vedanta and Foxconn, aiming an investment of ₹ 1.54 lakh crore to achieve self-reliance in the field of semiconductor manufacturing. India's semiconductor component market is likley to reach $300 billion in cumulative revenues by 2026, as 'Make in India' and production-linked incentive (PLI) schemes will boost local sourcing of semi-components in the coming years, according to the report by the India Electronics &amp; Semiconductor Association (IESA) and Counterpoint Research. The report further said that as India wants to become a chip powerhouse, it "should not take the bait laid by American diplomats in the hope that the US will provide it with important resources." "First, the assistance that Akhter said the US would provide to India may not be delivered on," it added. "Even as the US chose India as a partner in semiconductor cooperation in geopolitical calculations, this doesn't mean it will really help India to boost the semiconductor sector," the report mentioned. The real question India faces is if it wants to upgrade its chip manufacturing sector and move toward the upstream industrial chain, "it must build up a solid industry basis, instead of pinning its hope on US lip service". SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/india-unlikely-to-be-hit-as-hard-by-global-recession-as-other-countries-sbi-chairman/articleshow/94872601.cms">India unlikely to be hit as hard by global recession as other countries: SBI chairman</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/unseasonal-rains-have-damaged-crops-agri-minister/articleshow/94879881.cms">Unseasonal rains have damaged crops: Agri Minister</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/indias-forex-reserve-declined-due-to-dollar-appreciation-fm/articleshow/94872555.cms">India's forex reserve declined due to dollar appreciation: FM</a>

US offer to help India in chip manufacturing just lip service: China

<ul><li>The government has passed a ₹76,000 crore ($10 billion) incentive scheme for semiconductors, which will strengthen India’s manufacturing base in making semiconductor chips.</li><li>Also, about 85,000 semiconductor engineers would be supported over the course of the next 20 years.</li><li>The development comes at a time when many companies across the world have been suffering from a chip shortage for so long now.</li></ul>Finally, some of the semiconductor shortage will hopefully ease after the Indian government announced an ambitious production-linked incentive (PLI) scheme worth ₹76,000 crore (around $10 billion at current rates) for establishing a semiconductor ecosystem in the country. The development comes at a time when auto majors and several other companies using chips in their products across the world have been suffering from a chip shortage for so long now. Semiconductor chipsets are used across a wide range of consumer electronics, including smartphones, laptops, computers, cars, smart home appliances like lights, fans and many other things. There are many semiconductor manufacturers across the world, but very few are listed in the Indian market. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Indian semiconductor companies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Stock price change on December 15 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Moschip Technologies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+9.96% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ASM Technologies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+4.99% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">SPEL Semiconductor </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+4.85% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ruttonsha International Rectifier </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+4.97% </td></tr></tbody></table> This is not the first time that the government has announced a PLI scheme for the electronics industry. Earlier last year, a <a href="https://www.businessinsider.in/policy/economy/news/inside-indias-50000-crore-scheme-to-woo-electronics-manufacturing-including-smartphones/articleshow/76207462.cms">₹50,000 crore PLI scheme</a> was announced to woo electronics manufacturing, including smartphones. Following Wednesday’s announcement, Nifty Auto was the only gainer amongst all other sector indices that were in red in line with the volatile market. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Auto companies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Price change on December 15 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TVS Motor </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+1.4% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Maruti Suzuki </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+0.91% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hero MotoCorp </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+0.85% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mahindra &amp; Mahindra </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+0.85% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bajaj Auto </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+0.34% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tube Investments of India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+0.25% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ashok Leyland </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+0.24% </td></tr></tbody></table> P.N. Sudarshan, partner and technology, media, and telecom (TMT) Industry Leader at Deloitte said that, “While this initiative may ameliorate the situation in the medium term, this is even better in the long-term as this would spur the semiconductor manufacturing segment. That would provide opportunities both for import substitution and export propulsion.” Leaders from the industry believe the move will prevent future semiconductor shortages. “In the long-term, issues like sudden surge in demand for semiconductors will also be addressed. This move will also make the Indian manufacturers globally competitive to attract investment in the areas of core competency and cutting-edge technology,” said Sanjay Gupta, managing director at NXP India. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/tvs-motor-shares-gains-on-report-of-company-to-tie-up-bmw-to-make-electric-vehicle/articleshow/88298075.cms">TVS Motor gains on report of tie-up with BMW to manufacture EVs</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/indias-first-healthtech-unicorn-innovaccer-is-now-valued-more-than-pinelabs-and-sharechat/articleshow/88301389.cms">India’s first healthtech unicorn Innovaccer is now valued more than PineLabs and ShareChat</a>

Checkout chip makers’ stocks that surged on PLI scheme; industry leaders feel the move will make India self-reliant

New Delhi: After meeting Prime Minister <keyword id="19895781" type="General" weightage="20" keywordseo="narendra-modi" source="keywords">Narendra Modi</keyword> ahead of the <keyword id="21272963" type="General" weightage="100" keywordseo="semicon-india-2024" source="Orion">Semicon India 2024</keyword> Summit, <keyword id="20137945" type="General" weightage="20" keywordseo="sanjay-mehrotra" source="keywords">Sanjay Mehrotra</keyword>, CEO of Micron, appreciated PM Modi's vision of developing semiconductors in India and said policies set up by him to incentivise semiconductor manufacturing in India are also very exciting. "PM Modi's vision to develop semiconductors in India and make it self-reliant is very exciting. The policies set up by him to incentivise semiconductor manufacturing are equally exciting. This is the perfect time for India to develop semiconductors because opportunities will grow with AI. The best is yet to come," Mehrotra said ahead of SEMICON India 2024 Summit. PM Modi will inaugurate SEMICON India 2024 at India Expo Mart, Greater Noida, Uttar Pradesh, today. Earlier on Tuesday, PM Modi chaired Semiconductor Executives' Roundtable at his residence. During the meeting, the Prime Minister said that their ideas will not only shape their business but also India's future. Mentioning that the coming time will be technology-driven, Prime Minister said semiconductor is the basis of the Digital Age and the day is not far "when the semiconductor industry will be the bedrock for even our basic necessities". The Prime Minister emphasised that democracy and technology together can ensure the welfare of humanity and India is moving ahead on this path recognizing its global responsibility in the semiconductor sector. According to an official release, the Prime Minister talked about the pillars of development which include developing social, digital and physical infrastructure, giving boost to inclusive development, reducing compliance burden and attracting investment in manufacturing and innovations. The meeting was attended by CEOs, Heads and representatives of various organisations including SEMI, Micron, NXP, PSMC, IMEC, Renesas, TEPL, <keyword id="23116584" type="General" weightage="20" keywordseo="tokyo-electron-ltd" source="keywords">Tokyo Electron Ltd</keyword>, Tower, <keyword id="19920144" type="General" weightage="20" keywordseo="synopsys" source="keywords">Synopsys</keyword>, Cadence, Rapidus, Jacobs, JSR, Infineon, Advantest, Teradyne, Applied Materials, Lam Research, Merck, CG Power and Kaynes Technology. Also present in the meeting were Professors from Stanford University, University of California San Diego and IIT Bhubaneswar. SEMICON India 2024 is being organised from 11 to 13 September with the theme "Shaping the Semiconductor Future." The three-day conference will showcase India's semiconductor strategy and policy, which envisions making India a global hub for semiconductors. It will witness the participation of top leadership of global semiconductor giants and will bring together global leaders, companies, and experts of the semiconductor industry. The conference will witness participation of more than 250 exhibitors and 150 speakers.

Semicon India 2024: This is perfect time for India to develop semiconductors, says MICRON CEO Sanjay Mehrotra

New Delhi, The Union <keyword id="19901283" type="General" weightage="20" keywordseo="cabinet" source="keywords">Cabinet</keyword>, chaired by Prime Minister <keyword id="19895781" type="General" weightage="20" keywordseo="narendra-modi" source="keywords">Narendra Modi</keyword>, on Thursday approved the establishment of three semiconductor fabrication (fab) units that will start construction within the next 100 days and generate direct employment of 20,000 advanced technology jobs and nearly 60,000 indirect jobs. The semiconductor fab with 50,000 wafers per month capacity will be set up by Tata Electronics Private Ltd (TEPL) in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, in Dholera, Gujarat. This fab will be constructed with an investment of Rs 91,000 crore, said Union IT Minister <keyword id="19904138" type="General" weightage="20" keywordseo="ashwini-vaishnaw" source="keywords">Ashwini Vaishnaw</keyword>. This fab will cover high-performance compute chips with 28 nm technology, and power management chips for electric vehicles (EVs), telecom, defence, automotive, consumer electronics, display, power electronics, etc, according to the government. Another semiconductor assembly, testing, monitoring, and packing (ATMP) unit with a capacity of 48 million per day by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) in Morigaon, Assam, will be set up with an investment of Rs 27,000 crore. TSAT semiconductor is developing indigenous advanced semiconductor packaging technologies including flip chip and ISIP (integrated system in package) technologies. It will cover sectors like automotive, electric vehicles, consumer electronics, telecom and mobile phones, etc, according to the government. The third semiconductor ATMP unit for specialised chips will be set up by <keyword id="20541983" type="General" weightage="20" keywordseo="cg-power" source="keywords">CG Power</keyword>, in partnership with Renesas Electronics Corporation, Japan and <keyword id="20776317" type="General" weightage="20" keywordseo="stars-microelectronics" source="keywords">Stars Microelectronics</keyword>, Thailand in Sanand, Gujarat. "This unit with a capacity of 15 million per day will be set up with an investment of Rs 7,600 crore," the Centre said. The CG power semiconductor unit will manufacture chips for consumer, industrial, automotive, and power applications. Within a very short time, the India Semiconductor Mission has achieved four big successes. With these units, the semiconductor ecosystem will get established in India. India already has deep capabilities in chip design. With these units, the country will develop capabilities in chip fabrication. Advanced packaging technologies will be indigenously developed in India with Thursday's announcement. These units will accelerate employment creation in downstream automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing, and other semiconductor consuming industries. The 'Programme for Development of Semiconductors and Display Manufacturing Ecosystem' in India was notified in 2021 with a total outlay of Rs 76,000 crore. In June last year, the Cabinet had approved the proposal of US-based Micron for setting up a semiconductor unit in Sanand, Gujarat. Construction of this unit is progressing at a rapid pace and a robust semiconductor ecosystem is emerging near the unit.

Cabinet approves 3 semiconductor fab units, to generate 80,000 jobs

<keyword id="19986399" type="General" weightage="20" keywordseo="Tata-Electronics" source="keywords" meta.keywordsubtype="org" meta.entityname="Tata Electronics" meta.hostid="261" meta.entityid="Tata Electronics">Tata Electronics</keyword> on Thursday said it has concluded an agreement with Taiwan-based Powerchip <keyword id="20073013" type="General" weightage="20" keywordseo="semiconductor-manufacturing" source="keywords">Semiconductor Manufacturing</keyword> Corporation, which will provide technology support for the Dholera wafer fab of the Indian tech major. As per the agreement, PSMC will provide design and construction support to build India's first AI-enabled greenfield fab in Gujarat, license a broad portfolio of technologies and provide engineering support to the fab unit. "We are pleased to partner with PSMC, whose technology and expertise will significantly accelerate our roadmap to pioneer semiconductor manufacturing in India. It will position us to play a key role in the growing semiconductor market to serve global customers," Tata Sons Chairman N Chandrasekaran said. The company is setting up a chip manufacturing unit in Dholera at an investment of up to Rs 91,000 crore ( about USD 11 billion). "<keyword id="19924335" type="General" weightage="20" keywordseo="Tata-Group" source="keywords" meta.keywordsubtype="org" meta.entityname="Tata Group" meta.hostid="261" meta.entityid="Tata Group">Tata Group</keyword>'s multi-fab vision for Dholera is projected to create over 1,00,000 skilled jobs," the statement said. Tata Electronics' Dholera-based Fab will have a manufacturing capacity of up to 50,000 wafers per month. "This partnership represents a win-win situation, as it positions PSMC and the Taiwanese ecosystem to gain a significant first-mover advantage in the rapidly expanding Indian market while helping India achieve self-reliance in semiconductor manufacturing," Powerchip Group, Chairman and CEO of PSMC, Frank Huang said. SEE ALSO:<a href="https://www.businessinsider.in/business/telecom/news/airtel-is-using-ai-powered-technology-to-block-spam-calls-and-messages/articleshow/113691942.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/telecom/news/airtel-is-using-ai-powered-technology-to-block-spam-calls-and-messages/articleshow/113691942.cms" target="_blank">Airtel is using AI-powered technology to block spam calls and messages</a><a href="https://www.businessinsider.in/stock-market/webstories/diffusion-engineers-ipo-quick-review-ipo-gmp-risk-factors-and-more/slidelist/113687580.cms" target="_blank"></a> <a href="https://www.businessinsider.in/stock-market/webstories/diffusion-engineers-ipo-quick-review-ipo-gmp-risk-factors-and-more/slidelist/113687580.cms" target="_blank">Diffusion Engineers IPO quick review – IPO GMP, risk factors and more</a><a href="https://www.businessinsider.in/stock-market/news/manba-finance-ipo-allotment-how-to-check-allotment-ipo-gmp-listing-date-and-more/articleshow/113667907.cms" target="_blank"></a> <a href="https://www.businessinsider.in/stock-market/news/manba-finance-ipo-allotment-how-to-check-allotment-ipo-gmp-listing-date-and-more/articleshow/113667907.cms" target="_blank">Manba Finance IPO allotment – How to check allotment, IPO GMP, listing date and more</a>

Tata Electronics, PSMC conclude pact for ₹91,000 crore Dholera chip manufacturing unit

<ul class="summary-list"><li>The Biden administration is subsidizing the semiconductor industry to boost US chip production.</li><li>But the US doesn't have enough workers in the AI chip manufacturing sector.</li></ul>The US desperately needs more workers to build AI chips.The semiconductor industry is responsible for building AI chips, but over the past two decades, the number of workers in American semiconductor manufacturing has dropped sharply, <a target="_blank" href="https://www.wsj.com/tech/americas-chip-renaissance-needs-workers-204cbf81">according to The Wall Street Journal</a>.That decline in workers corresponded with a decline in the US share of the global chip-making market. Between 1990 and 2020, the number of chips made in the United States fell by a third. In that same period, Taiwan, China, and South Korea's combined share grew by almost 60%, the Journal reported.The United States is eager to control chip manufacturing as artificial intelligence becomes critical in national and international security. Since "general-purpose AI software, datasets, and algorithms are not effective targets for controls, the attention naturally falls on the computer hardware necessary to implement modern AI systems," Saif M. Khan and Alexander Mann <a target="_blank" href="https://cset.georgetown.edu/publication/ai-chips-what-they-are-and-why-they-matter/">wrote in a Center for Security and Emerging Technology report</a>.An edge in chip manufacturing would help the United States maintain global dominance. "Given the foundational nature of certain technologies, such as advanced logic and memory chips, we must maintain as large of a lead as possible," national security advisor Jake Sullivan <a target="_blank" href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2022/09/16/remarks-by-national-security-advisor-jake-sullivan-at-the-special-competitive-studies-project-global-emerging-technologies-summit/">said in a speech</a> in 2022.Chip manufacturing, however, is the industry's largest cost driver, <a target="_blank" href="https://www.mckinsey.com/industries/semiconductors/our-insights/scaling-ai-in-the-sector-that-enables-it-lessons-for-semiconductor-device-makers">according to a report from McKinsey &amp; Company</a>. And manufacturing in the United States has only become more expensive.So the Biden administration is providing billions of dollars for semiconductor research, development, manufacturing, and workforce development through the <a target="_blank" href="https://www.businessinsider.com/chips-act-bill-to-boost-us-chipmaking-competition-with-china-2022-7">CHIPS and Science Act</a>.Leading chip manufacturer <a target="_blank" href="https://www.businessinsider.com/taiwan-semiconductor-tsmc-biden-microchips-chips-act-election-china-arizona-2024-4">Taiwan Semiconductor Manufacturing Co. is one company using those subsidies to expand production</a> in Arizona.But subsidies only help if there are workers to do the jobs. If the United States really wants to catch up in the race to make more chips, it will have to convince more workers to join the semiconductor industry.Universities can be a fertile ground for recruiting that talent.At Purdue University in Indiana, students are already excited about the buzz around AI and the skyrocketing valuations of <a target="_blank" href="https://www.businessinsider.com/nvidia-jensen-huang-stock-boost-employees-special-grant-2024-4">US chipmakers like Nvidia</a>. About 100 Purdue students majoring in materials, mechanical, or electrical engineering have graduated with a concentration in semiconductors, while another 135 students are enrolled in certificate programs, the Journal reported. There's even an on-campus semiconductor club that drew 170 new members in two months.Purdue is now partnering with South Korean chipmaker SK Hynix to build a $3.9 billion semiconductor complex in West Lafayette that will make AI memory chips, the Journal reported. Still, "one of the biggest challenges is getting students to fall in love with semiconductors," Nikhilesh Chawla, a professor of materials engineering who co-directs Purdue's semiconductor programs, told the Journal.The good news is that experts also say that the industry's labor costs are likely to diminish in the coming years. Purdue's president, Mung Chiang, told the Journal that one area that may see a decrease in costs is packaging, which helps chips connect to other devices. Packaging has long been labor-intensive, but SK Hynix's plans for advanced packaging will help "rewrite the cost equation," Chiang told the Journal.

The US is betting big on AI chips, but there's a giant flaw in the plan

<ul class="summary-list"><li>US efforts to produce semiconductor chips will continue regardless of who wins the election.</li><li>Harris and Trump think domestic chip production is key for economic and national security reasons.</li></ul>No matter who wins the presidential election this November, President Joe Biden can rest easy knowing one thing: The US's <a target="_blank" href="https://www.businessinsider.com/tsmc-arizona-kate-gallego-semiconductor-industry-companies-phoenix-nonstop-flights-2023-10">chip manufacturing push</a> isn't going anywhere.Four industry experts told Business Insider that the Biden administration's efforts to boost the domestic production of semiconductor chips that power everything from <a target="_blank" class="" href="https://www.businessinsider.com/apple-iphone-chip-shortage-supply-constraints-2021-7">iPhones</a> to <a target="_blank" class="" href="https://www.businessinsider.com/chip-shortage-auto-industry-car-buying-dealerships-consumers-inventory-2022-12">cars</a> are likely to continue regardless of whether Vice President Kamala Harris or former President Donald Trump is sworn into office this January."I don't think there's going to be a considerable change in approach whether it becomes a Harris or Trump 2.0 administration," Stephen Ezell, vice president for global innovation policy at the Information Technology and Innovation Foundation and director of ITIF's Center for Life Sciences Innovation, told BI.While the semiconductor industry hasn't been a prominent campaign topic this election season, its future has ramifications for both national security and the economy, particularly in the swing state of Arizona. Both candidates have <a target="_blank" class="" href="https://kamalaharris.com/issues/">supported</a> investments in US chip <a target="_blank" class="" href="https://www.cnn.com/2024/07/23/tech/trump-taiwan-tsmc-chips-industry-hnk-intl/index.html">manufacturing</a>; however, experts told BI their approaches might differ given their differences in ideologies.Harris' campaign <a target="_blank" class="" href="https://kamalaharris.com/issues/">website</a> says that as president, she would build upon the Biden administration's progress and "support American leadership in semiconductors." While the Republican <a target="_blank" class="" href="https://rncplatform.donaldjtrump.com/?_gl=1*einmxh*_gcl_au*NDI4Mzk2ODMwLjE3MjkwODY3NTY.&amp;_ga=2.42154470.251159694.1729086756-205286004.1729086756">platform</a> posted on Trump's campaign website doesn't specifically mention the semiconductor industry, it calls for a "resurgence of American manufacturing." In the September debate, Trump voiced frustration about the <a target="_blank" class="" href="https://www.opb.org/article/2024/09/11/oregon-semiconductor-business-economy-chips-presidential-debate-kamala-harris-donald-trump/">decline</a> in US chip manufacturing in recent decades.When reached for comment, RNC spokesperson Anna Kelly said: "In his first term, President Trump lowered taxes for American manufacturers that produced goods in the USA and imposed tariffs to level the playing field for American companies." However, Kelly did not answer specific questions about what semiconductor policies Trump would support if he were reelected. The Harris campaign did not respond to a request for comment.<h2 id="84898fb3-cdc7-4771-ac8b-7c670541cdc9">Boosting US chip manufacturing is all about reducing threats from China</h2>In 2022, Biden signed the<a target="_blank" href="https://www.businessinsider.com/chips-act-bill-to-boost-us-chipmaking-competition-with-china-2022-7"> CHIPS and Science Act</a> into law, which provided $52.7 billion for American semiconductor research, development, manufacturing, and workforce development. This included <a target="_blank" href="https://www.businessinsider.com/trump-taiwan-china-semiconductor-chips-us-economy-trade-biden-election-2024-7">$39 billion</a> in manufacturing incentives for chip production in the US that spurred the construction of <a target="_blank" href="https://www.businessinsider.com/us-building-factories-census-data-chips-act-inflation-reduction-act-2023-6">factories</a> across the country.Much of this investment has flowed to the <a target="_blank" href="https://www.businessinsider.com/battleground-states-2024-presidential-election-road-white-house-2022-12">key swing state</a> of Arizona, where <a target="_blank" href="https://www.azcentral.com/story/money/business/tech/2024/09/24/arizonas-semiconductor-industry-what-to-know-about-the-booming-field/74371215007/">over 16,000</a> semiconductor industry jobs were created since 2020 and <a target="_blank" class="" href="https://www.businessinsider.com/tsmc-arizona-semiconductor-chip-fab-taiwan-china-president-joe-biden-2024-4">thousands more</a> are expected to be generated in the years to come. Phoenix is home to <a target="_blank" class="" href="https://www.businessinsider.com/tsmc-arizona-kate-gallego-semiconductor-industry-companies-phoenix-nonstop-flights-2023-10">roughly 80</a> semiconductor companies, including two of the largest chip manufacturers in the world: Intel and TSMC.The Biden administration's efforts may not persuade Arizonans to vote for Harris; recent polls show Trump with a <a target="_blank" class="" href="https://www.nytimes.com/interactive/2024/10/12/us/elections/times-siena-poll-arizona-toplines.html">narrow lead</a> in the state. But regardless of whether Harris and Trump come out on top, Arizona should continue to reap the economic benefits.In part, that's because most of the $39 billion in CHIPS Act incentives have already been <a target="_blank" href="https://www.businessinsider.com/taiwan-semiconductor-tsmc-biden-microchips-chips-act-election-china-arizona-2024-4">allocated</a> to specific companies and projects, experts told BI. And while much of that money has yet to be disbursed — it's doled out over time when companies hit certain construction and manufacturing milestones — both Harris and Trump are expected to generally stay the course."I suspect that either presidential candidate would continue to support the domestic semiconductor manufacturing base," Chris Miller, a nonresident senior fellow who focuses on semiconductors at the American Enterprise Institute and author of "<a target="_blank" href="https://affiliate.insider.com?h=d502c83643c3c12ead2e514cd3eaef0fff4f3f6742ca3f91026e1171ffd1ca23&amp;postID=670e8b5fe5b540830057f7f8&amp;postSlug=us-semiconductor-chip-production-continue-harris-trump-presidency-arizona-jobs-2024-10&amp;site=bi&amp;u=https%3A%2F%2Fwww.amazon.com%2FChip-War-Worlds-Critical-Technology%2Fdp%2F1982172002%2Fref%3Dtmm_hrd_swatch_0%3F_encoding%3DUTF8%26qid%3D%26sr%3D">Chip War: The Fight for the World's Most Critical Technology</a>," told BI.The Biden administration is betting that boosting domestic chip manufacturing will create American jobs and help the US avoid the type of <a target="_blank" class="" href="https://www.businessinsider.com/chip-shortage-impacting-cars-smartphones-pcs-gaming-consoles-2021-2">chip shortage</a> that wreaked havoc on supply chains during the pandemic. It could also make the US <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.businessinsider.com/asml-tsmc-semiconductor-chip-equipment-kill-switch-china-invade-taiwan-2024-5">less reliant</a> on chips sourced abroad by companies like <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.businessinsider.com/tsmc-power-players-14-execs-leading-worlds-biggest-chipmaker-2024-9">TSMC</a>, which produces <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.citigroup.com/global/insights/the-u-s-china-chip-war-who-dares-to-win">an estimated 90%</a> of the world's advanced chips. TSMC is based in Taiwan, which faces the potential threat of a <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.businessinsider.com/china-wants-taiwan-make-mistakes-excuse-trigger-blockade-navy-commander-2024-10">Chinese invasion</a>. There is also concern that China — which has <a target="_blank" href="https://www.businessinsider.com/china-planning-41-billion-semiconductor-fund-chip-war-heats-up-2023-9">invested heavily</a> in chip production — could gain an edge in the vital industry. The US has seen its share of overall chip production fall from <a target="_blank" href="https://www.businessinsider.com/why-us-doesnt-make-chips-semiconductor-shortage-2021-4">37%</a> of the world's supply in 1990 to <a target="_blank" class="" href="https://www.businessinsider.com/semiconductor-chips-jobs-hiring-arizona-tech-phoenix-tsmc-intel-china-2024-1">12%</a>.According to Mark Muro, a senior fellow at Brookings Metro, the CHIPS Act received <a target="_blank" href="https://www.businessinsider.com/chips-act-bill-to-boost-us-chipmaking-competition-with-china-2022-7">bipartisan support</a> in part because both parties want to prevent China from gaining a technological edge in <a target="_blank" href="https://www.businessinsider.com/china-us-chip-export-restrictions-nvidia-ai-2024-8">sectors like AI</a>."Both Harris and Trump basically agree that China is a serious threat to our technology future and that reshoring significant chip production is a critical national security priority," he said. "So all of that is good for continuity."While many factories remain under construction, the federal funding has already helped boost US chip production. TSMC, the world's leading chipmaker, has begun making chips for Apple at one of its <a target="_blank" class="" href="https://www.businessinsider.com/tsmc-phoenix-chip-semiconductor-factory-biden-global-economy-china-taiwan-2022-12">Phoenix factories</a>, two people familiar with the matter told Business Insider.Both candidates are also expected to continue the <a target="_blank" href="https://www.businessinsider.com/china-us-chip-export-restrictions-nvidia-ai-2024-8">export controls</a> the Biden administration implemented, which were intended to keep US-developed chip technology from companies <a target="_blank" class="" href="https://www.wsj.com/tech/ai/chinas-ai-engineers-are-secretly-accessing-banned-nvidia-chips-58728bf3">like Nvidia</a> out of China.To be sure, experts told BI that it's difficult to forecast which semiconductor-related policies Harris or Trump would pursue as president and congressional support would often be required to take action.<h2 id="f376ea9c-c222-402c-b79c-68816c89c76a">How Trump and Harris might disagree on semiconductors</h2>Harris and Trump's approaches to continuing US chip production could differ in some ways.For one, there's the question of whether the semiconductor industry will receive additional funding through a <a target="_blank" href="https://markets.businessinsider.com/news/stocks/us-seeks-semiconductor-supremacy-with-new-funding-initiatives-1033125691">second CHIPS Act</a>, which some government representatives think the country needs to solidify itself in the global semiconductor market."The CHIPS Act is too small to ensure national security," Dylan Patel, a chief analyst at the semiconductor research and consulting firm SemiAnalysis, told BI.Ultimately, it will be Congress — not the next president — that dictates whether additional legislation is passed. However, experts told BI that Harris would be more likely to push for this."A Harris administration would probably be more likely to advance a CHIPS Act 2.0, just given the Democratic party's general endorsement of industrial policy and willingness to invest significant sums to support industrial policy," Ezell said. "A Trump administration would probably not be opposed to a CHIPS Act 2.0, but it would probably be less likely to instigate one."There could also be differences when it comes to tax policy. Ezell said some semiconductor industry manufacturing incentives — including a <a target="_blank" href="https://www.manufacturingdive.com/news/chips-act-should-extend-2026-design-tax-incentive-sia-report-2024/727833/">25%</a> investment tax credit that's part of the CHIPS Act — expire in 2026. While congressional approval would be required to extend the credit, Ezell said Trump — who has generally supported <a target="_blank" href="https://www.businessinsider.com/donald-trump-tax-cuts-ceos-tim-cook-jamie-dimon-wall-street-2024-6">lower taxes</a> for corporations — may be more likely to support such a move.Trump is also more likely to push for a lower <a target="_blank" href="https://www.businessinsider.com/trump-tax-plan-tarriffs-benefits-top-earners-study-2024-10">corporate tax rate</a> that would boost profits for US businesses — including semiconductor companies.Differences in immigration policy could also impact semiconductor firms. According to a<a target="_blank" href="https://www.semiconductors.org/america-faces-significant-shortage-of-tech-workers-in-semiconductor-industry-and-throughout-u-s-economy/"> report</a> published last year by the trade and lobbying group Semiconductor Industry Association and Oxford Economics, the US semiconductor industry will face a shortage of 67,000 workers by 2030, including technicians, computer scientists, and engineers. Immigration could be <a target="_blank" href="https://www.semiconductors.org/chipping-away-assessing-and-addressing-the-labor-market-gap-facing-the-u-s-semiconductor-industry/">one way</a> to help fill this gap.While Trump has generally backed <a target="_blank" href="https://www.businessinsider.com/immigration-border-security-biden-trump-2024-election">more restrictive</a> immigration policies than Harris, experts told BI that both candidates have <a target="_blank" href="https://www.cnn.com/2024/06/20/politics/trump-green-cards-gradutate-college/index.html">supported</a> using immigration as a tool to address some domestic workforce needs."The current moment is an opportunity to create hundreds of thousands of new quality jobs, but it could be depressed by the addition of more barriers to immigration — whether high-skill or lower-skill," Muro said.Do you work in the semiconductor chip industry and have a story to tell? Reach out to this reporter at <a target="_blank" href="mailto:jzinkula@businessinsider.com">jzinkula@businessinsider.com</a>.

America's chipmaking push will continue no matter who gets elected

<ul><li><keyword id="3658" type="General" weightage="80" keywordseo="india" source="Orion">India</keyword> is looking to woo semiconductor players such as <keyword id="28115" type="General" weightage="100" keywordseo="intel" source="Orion">Intel</keyword>, <keyword id="171929" type="General" weightage="80" keywordseo="tsmc" source="Orion">TSMC</keyword> and <keyword id="229605" type="General" weightage="80" keywordseo="globalfoundries" source="Orion">GlobalFoundries</keyword>.</li><li>The government is currently in talks with these companies to set up local operations.</li><li>The government had announced a production-linked incentive (PLI) scheme worth ₹76,000 crore in 2021.</li></ul>In a bid to push the semiconductor industry, which is in nascent stages, the Indian government is wooing global chipmakers such as Intel, and Taiwan Semiconductor Manufacturing Co. and GlobalFoundries. According to a <a href="https://www.bloomberg.com/news/articles/2022-04-26/india-woos-intel-and-tsmc-to-set-up-local-semiconductor-plants">report</a> by Bloomberg News, the government is currently in talks with these companies to set up local operations, thereby bringing high-tech manufacturing to the country. Semiconductor chipsets are used across a wide range of consumer electronics like smartphones, laptops, computers, cars, smart home appliances and many other things. <cmsannotation type="cmsannotation" annotationid="India’s ₹76,000 semiconductor crore push" comment="subhead" text="India’s ₹76,000 semiconductor crore push">India’s ₹76,000 semiconductor crore push</cmsannotation> In December 2021, the Indian government <a href="https://www.businessinsider.in/policy/economy/news/india-makes-a-10-billion-bet-to-woo-chip-makers-at-home/articleshow/88298295.cms">announced</a> a production-linked incentive (PLI) scheme worth ₹76,000 crore (around $10 billion) for establishing a semiconductor ecosystem in the country. As part of the scheme, the government has offered to cover up to 50% of the project cost. “Most of the pitches to these big companies, I’m making myself. We’re meeting the CEOs, talking to them, making presentations,” Rajeev Chandrasekhar, minister of state for electronics and information technology said in an interview to Bloomberg News. Chandrasekhar added that states in India are competing to attract semiconductor giants. “They are all open to sitting down and negotiating what other incentives, apart from land, they can offer investors. It is a keenly contested, keenly sought-after investment by states,” he added. While a venture between Vedanta Group and Foxconn Technology Group has shown interest in setting up semiconductor foundries in the country, other companies are cautious due to issues such as power outages and infrastructure in the country. India achieved success in its aim of bringing smartphone manufacturing into the country thanks to the incentives offered by the government and the imposition of taxes on imported devices. However, setting up a semiconductor industry requires substantial investments and the government intends to only use incentives to attract the big players. <div type="twitter" handle="narendramodi" handlename="Narendra Modi" image="http://pbs.twimg.com/profile_images/1479443900368519169/PgOyX1vt_normal.jpg" favoritecount="17399" retweetcount="3184" status="Glad to have met you @PGelsinger! We had excellent discussions on subjects relating to tech, research and innovatio… https://t.co/nHjaU33Sw1" createdat="1649264685000" id="1511751779519954945"></div> Earlier this month, Intel chief Pat Gelsinger met with prime minister Narendra Modi. According to a Business Today <a href="https://www.businesstoday.in/latest/corporate/story/intel-ceo-pat-gelsinger-meets-pm-modi-discusses-tech-328932-2022-04-07">report</a>, the two discussed India’s PLI scheme for the semiconductor industry. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/after-google-now-oppo-is-reportedly-working-on-its-own-chipset-to-reduce-dependence-on-qualcomm-and-mediatek/articleshow/90700478.cms">After Google, now Oppo is reportedly working on its own chipset to reduce dependence on Qualcomm and MediaTek</a> <a href="https://www.businessinsider.in/thelife/news/rivian-ceo-warns-the-looming-ev-battery-shortage-will-make-the-chip-shortage-feel-like-a-small-appetizer-for-whats-to-come/articleshow/90919065.cms">Rivian CEO warns the looming EV battery shortage will make the chip shortage feel like 'a small appetizer' for what's to come</a> <a href="https://www.businessinsider.in/tech/news/semiconductor-ecosystem-us-will-help-india-to-boost-countrys-semiconductor-target/articleshow/90819637.cms">US will help India to boost country’s semiconductor ecosystem</a>

You Searched For "semiconductor manufacturing" and got 12 results

India needs chipset manufacturers — lots of them. Here is why.

Navdeep Yadav

Semiconductor manufacturing in India gets a boost with ISMC’s proposed $3 billion plant in Karnataka

Rounak Jain

Indian government to offer ₹76,000 crore incentive package for semiconductor manufacturing in India, report says

Marcia Sekhose

China's chip output shrinks as India, US ramp up local manufacturing

IANS

US offer to help India in chip manufacturing just lip service: China

IANS

Checkout chip makers’ stocks that surged on PLI scheme; industry leaders feel the move will make India self-reliant

Bhakti Makwana

Semicon India 2024: This is perfect time for India to develop semiconductors, says MICRON CEO Sanjay Mehrotra

ANI

Cabinet approves 3 semiconductor fab units, to generate 80,000 jobs

IANS

Tata Electronics, PSMC conclude pact for ₹91,000 crore Dholera chip manufacturing unit

PTI

The US is betting big on AI chips, but there's a giant flaw in the plan

Lakshmi Varanasi

America's chipmaking push will continue no matter who gets elected

Jacob Zinkula

India is reportedly in talks with TSMC, Intel and other semiconductor giants to set up local production plants in the country

Sourabh Jain

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