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Worldwide huge shortage over semiconductors, where is India in this?

There is a huge shortage of semiconductors all over the world. Due to which the production of smartphones, computers, laptops and vehicles has all been affected. Last month, Tata Motors had said that Jaguar Land Rover’s production would be reduced due to their shortage.

The global economy is currently staggered due to a small chip. There has been a big gap in the demand and supply of these chips, called semiconductors, due to which there has been a huge shortage of them. Due to this, the production of smartphones, computers, laptops and vehicles has all been affected. Last month, Tata Motors had said that Jaguar Land Rover’s production would be reduced due to semiconductor shortage. According to media reports, the production of vehicles of Tata’s rival companies Mercedes-Benz, Audi and BMW has also decreased due to this.

Experts believe that this problem is very serious and the supply of semiconductor will now be normal only after one to one and a half years. Bosch, the company that supplies chips to automobile companies, has also warned that there may be a shortage of semiconductors throughout this financial year. At the same time, the computer chip maker Samsung has also warned of its shortage.

Due to increase in demand and decrease in production

Last year, due to Corona, there was a tremendous decline in the sales of most such products, in which semiconductors are used. In view of this, companies placed orders for semiconductors for the same products, which were being sold even during the first wave of Corona. But after the first wave, the demand for many other products suddenly increased. According to this demand, the supply of semiconductors could not be done and there was a huge shortage of them. The fire in the Japanese semiconductor company ‘Renaissance’ worked to increase this shortage further.

China chip production

chip production in china

But till now, in response to the question ‘why was its most impact on cars’, Madhukar Krishna, who works in an American semiconductor manufacturer, says, “It is not so. Cars mostly affect the public, so They are discussed more. But at this time there is also a huge shortage of machines like GPU i.e. Graphics Processing Unit. It is similar to CPU of computer but it is used by computer gamers. These GPUs are also used in cryptocurrency mining and This has also been the reason for its huge demand in the last year. This means that except for a few essential products, most of the sectors have shown a shortage of semiconductors.

India’s role in semiconductor race

By far the world’s largest semiconductor manufacturing companies are in the US and Taiwan. China and South Korea are also making serious efforts in this direction. In fact, China is the biggest importer of these processor chips and semiconductors, but a few months ago, after the shortage of semiconductors in the world, the US stopped the supply of American semiconductors to many Chinese companies like Huawei. After which China talked about promoting its domestic manufacturing. Experts say that China wants to produce them for many years, but the world’s big semiconductor companies are not ready to support it.

Chip inside the skin

Madhukar Krishna says, “Big semiconductor companies are afraid to set up such large research and manufacturing projects in China because they fear their technology being stolen. This is because China has been copying many technology companies, on their lines. Bringing its products to the market. Semiconductor production debate is going on in India too. Madhukar Krishna says, “India has great opportunities for semiconductor manufacturing and the government is also in talks with many big companies to set up semiconductor production units (called fabs) here, but most of the semiconductor-related activities here are research and development. are limited to.”

Why is it so difficult to manufacture semiconductors?

Experts say that there are 400-500 steps in the process of making a small semiconductor. In such a situation, if even a single step goes wrong, there can be a loss of crores of rupees. Madhukar Krishna explains, “The world of semiconductors is very vast. The ones we know as the biggest companies in semiconductors are not necessarily making all the semiconductors. There are many different types of companies in this sector. Most of the big companies have separate ones. There are patents for different semiconductors, which make semiconductors from other companies based on their production formula.

These factories that make semiconductors are called foundries. At present, Taiwanese company TSMC, Global Foundry and Samsung have their own foundries. But there are also third types of companies associated with this sector, which manufacture the necessary technology and machinery to make semiconductors. There are many companies with such research and development in India. These companies do not make semiconductors, but do research and development related to it. Madhukar Krishna explains this whole process like this, “If semiconductor is considered as bread, then big companies provide flour for this bread and the way to make it. Foundry companies make and prepare that roti. But from research and development The companies involved provide the required griddle to make this roti.

This tiny chip is also called the ‘brain of electronic devices’. According to experts, at present, semiconductors are used in the infotainment system, power steering, safety features and brake operators of cars. But in the future, when technologies like electric vehicles and Internet of Things will be accessible to everyone, their demand will increase manifold. That is, the tension in the world about this will increase even more. In such a situation, if India is successful in producing them in the next few years, then it can be very beneficial for him and the world.

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