The global semiconductor industry is in the headlines across the globe due to various Geo-political issues and secondly due to increasing digital slavery and businesses were accelerating like never before, and in turn, semiconductor markets boomed.
Semiconductors to be the new commodity on which the modern world depends, the Modi government has approved the India Semiconductor Scheme with a financial outlay of Rs 76,000 crore in December 2021.
What many experts were sure of was the fact that the semiconductor industry is poised for a decade of growth and by 2030 it is projected to become a trillion-dollar industry.
Experts predict that the short-term outlook for semiconductor revenue has worsened. Rapid deterioration in the global economy and weakening consumer demand will negatively impact the semiconductor market in 2023.
The World Semiconductor Trade Statistics predicts Japan, the US and Europe to witness growth in 2023, but a 7.5% decline is forecast for the rest of the Asia Pacific region including China, which is the world’s largest semiconductor market and accounts for over 30% of the total.
Currently, the semiconductor market is polarized between the consumer-driven markets and enterprise-driven markets. Global semiconductor revenue is forecast to total $596 billion in 2023, down from the previous forecast of US$623 billion. To boost India's dream of becoming a semiconductor nation, now Power chip Semiconductor Manufacturing Corp is ready to help India in setting fabs.
Taiwan Semiconductor Manufacturing Co. (TCMC) said that it is considering building a second plant in Japan and is evaluating the possibility of a first in Europe as the world's largest contract chipmaker responds to customers’ demands for a more geographically diverse supply chain. TSMC manufactures chips for almost all the world's major chip developers, including Apple, Nvidia, Qualcomm and MediaTek.
India holds over 6 percent of the world’s rare earth reserves, some of which are vital to the production of semiconductors, and Indian companies have been pushing for the government to take advantage of this fact.
With this India has been investing in domestic semiconductor manufacturing to address its own semiconductor consumption and to gain access to one of the world’s most valuable technologies. Domestic semiconductor consumption is expected to cross $80 billion in 2026, and policy makers/politicians have signalled the importance of the sector to India’s future, as per the vision of the Prime Minister Narendra Modi.
All it seems, despite this attention from the top, however, India is unlikely to overcome its own shortcomings and make up the gap with the world’s major semiconductor manufacturers.
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