Hindu Editorial Analysis : 21-June-2023
Semiconductors, those tiny thumbnail-sized building blocks, have become the foundation of nearly every modern electronic device, ranging from smartphones to Internet of Things (IoT) connected devices. These powerful components provide the computational power necessary for these devices to function efficiently.
Understanding Semiconductors: The Basic Components and Functionality
At the core of a semiconductor chip lies a sliver of silicon, etched with billions of microscopic transistors. The arrangement of these transistors, along with specific minerals and gases, forms patterns that control the flow of electrical current, enabling the chip to execute various computational instructions.
The World of Semiconductor Nodes and Their Diverse Applications
The semiconductor industry has reached remarkable technological milestones, with the most advanced nodes currently being the 3 nanometer (nm) and 5nm ones. These semiconductors find application in a wide range of devices, with higher nanometer value chips utilized in automobiles, consumer electronics, and other industrial applications, while lower nanometer value chips are found in smartphones and laptops.
The Global Semiconductor Industry: Current Landscape and Challenges
The global semiconductor industry is valued at an impressive $500-$600 billion, serving the global electronics market worth about $3 trillion. Major players in this industry include Taiwan, South Korea, and the U.S., with Taiwan Semiconductor Manufacturing Company (TSMC) producing 90% of 5nm chips. However, geopolitical tensions and supply chain disruptions have led to a renewed focus on domestic chip production in various countries.
India’s Semiconductor Sector: A Growing Powerhouse
India’s electronics and semiconductor manufacturing sector have experienced significant growth over the past decade. The country has transitioned from importing 92% of mobile devices in 2014 to manufacturing 97% of them locally in 2022. This growth is further reflected in the electronics ecosystem, which expanded from $10 billion in 2014 to $75 billion in 2022 and is projected to cross $300 billion by 2025-26. The electronics devices market is segmented into mobile phones, consumer electronics, strategic electronics, computer hardware, LEDs, and industrial electronics.
Opportunities and Challenges for India in the Semiconductor Industry
While India’s semiconductor sector shows immense potential, setting up semiconductor fabs presents considerable challenges. The process of miniaturization comes with higher complexity and costs, making semiconductor fabs risky investments. Moreover, chip manufacturing requires extensive infrastructure, specialized skills, and access to abundant clean water. China has dominated the semiconductor market, raising concerns about India’s competitiveness.
Learning from China: India’s Strategies and Way Forward
India’s strategy to compete with China involves setting up a new logic fab. Alternatively, acquiring existing fabs could offer advantages such as stabilized technology, established supply chains, and trained human resources, reducing the need for extensive subsidies. Funds saved could be redirected into advanced research and development to build state-of-the-art fabs. Another approach could involve setting up Advanced Technology Manufacturing Parks (ATMPs) to package chips effectively.
Why In News
Semiconductor fabrication, with its intricate processes and precision engineering, continues to push the boundaries of human technological advancement, offering remarkable opportunities for innovation and progress. From developing smaller and faster microchips to enabling breakthroughs in artificial intelligence and quantum computing, semiconductor fabrication stands as a testament to humanity’s relentless pursuit of pushing the limits of what is possible.
MCQs about India’s Journey in the Semiconductor Industry
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What is the primary function of semiconductors in electronic devices?
A. Provide computational power
B. Control the flow of current
C. Enable wireless connectivity
D. Enhance display resolution
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Which country currently mass-produces the majority of 5nm chips?
A. Taiwan
B. South Korea
C. United States
D. China
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What has been the growth trajectory of India’s electronics and semiconductor manufacturing sector?
A. Declined significantly over the years
B. Remained stagnant with no major changes
C. Experienced exponential growth
D. Witnessed a gradual decline
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What is one of the main challenges in setting up semiconductor fabs?
A. Lack of skilled workforce
B. Insufficient funding
C. Limited availability of silicon
D. Complex and costly nature of fabrication
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