A deal has been struck to build the first national security ‘Semiconductor Fabrication Plant‘ in collaboration between India and the USA. This chip plant is also special because this is the first time the US military is partnering with India for high technology.
PM Modi in USA: Prime Minister Narendra Modi is on a US tour. PM Modi has been given a grand welcome in the US. US President Joe Biden welcomed him warmly. PM Modi, who is on a US tour, also met the CEOs of big tech companies like Google and Nvidia. While addressing Indian-Americans in New York, the PM said something that would have increased China’s uneasiness.
India-US friendship, China is restless
Similarly, the friendship between America and India is increasing China’s headache. Now, whatever PM Modi has said, it is certain that the Dragon’s panic will increase. In fact, PM Modi said in New York that the day is not far when you will see Made in India chips in America too. Not only this, a deal has been made to build the first national security ‘semiconductor fabrication plant’ in collaboration between India and America. This chip plant is also special because this is the first time that the US Army is partnering with India for high technology.
Challenge to China’s dominance in semiconductors
Semiconductors are the heart of any electronic device. Countries like China and Taiwan dominate chip making. China also takes full advantage of its dominance. During Covid, the whole world had to deal with this shortage of semiconductors. America wants to end this dominance of China and hence is also supporting India’s semiconductor mission. China is the largest exporter of semiconductors. The size of the chip business worldwide can be gauged from the fact that by the year 2025, India will spend 10 billion dollars on it, America 208 and China 1.4 trillion dollars.
Meaning of semiconductors for India
India is one of the many large nations that depends on imports of semiconductors. Only a small number of companies supply semiconductors to the entire world. It is dominated by nations like South Korea, China, Taiwan, and Japan. Everyone on the planet was aware of the severe semiconductor scarcity during COVID-19. Production was impacted from cars to mobile devices. Countries have to deal with a shortage of semiconductors occasionally as a result of COVID and occasionally as a result of war. India has begun attempting to bolster its position in semiconductors, the future’s vital industry. India needs to challenge China in order to make a name for itself in this industry. India’s semiconductor sector is expected to reach a valuation of 80 billion dollars by 2026.
This amount is expected to increase to 110 billion dollars by 2030. It is evident from these numbers how crucial semiconductors are to India. India has taken action to bolster its position in the production of semiconductors. There are ongoing discussions with businesses worldwide. To entice investment, incentives have been announced. Companies can receive incentives from the government worth up to $10 billion. Businesses are being advertised. India is moving its mission forward with the help of businesses like Tata, CG Power, and Industrial Solution Limited.
Why is this semiconductor so special
Any electric device’s semiconductor, or silicon chip, is its most crucial component. Whether it’s the remote control for your car, smartphone, or TV-AC. Anything from an LED lightbulb to a missile cannot be produced without semiconductors. Given how significant this chip is, it stands to reason that everyone will want one. However, it’s not that simple to make. The complexity of the semiconductor manufacturing process has forced even highly industrialized nations to abandon it. Large nations refrain from entering the semiconductor industry due to the protracted production process, high cost, and issue with raw material supply.
+ There are no comments
Add yours