The last two years were not accentuated by the pandemic alone. The geopolitical situation triggered a chip shortage that the world has still not come out of. We face issues like less supply, more demand, and insufficient capacity at semiconductor fabs.
A leading chip company has said that the shortage of chips has hurt the US economy to the extent of $240 billion last year. This company is investing USD 95 billion in opening and upgrading semiconductor plants in Europe.
Now, as global suppliers are rethinking their strategies to make their supply chains more resilient, the question arises: Can India take the lead? Some experts in the country are questioning whether India can be second-time lucky with its semiconductor manufacturing strategy and push.
Yes, it certainly can. Our country has the potential to leapfrog into a place that can become the new global manufacturing hub for the world. A hub that provides is rooted in democratic stability, skilled talent, and a good infrastructure ecosystem.
The much-required impetus
Karnataka was perhaps the first state to have a semiconductor policy. The state journeyed ahead quite a distance in chip design and embedded software development.
Our efforts got a huge impetus last year in December, when the Union Cabinet approved a 76,000 crore scheme to boost the semiconductor and display manufacturing in the Country. IndiaToday