{"id":202285,"date":"2022-08-27T17:38:28","date_gmt":"2022-08-27T12:08:28","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=202285"},"modified":"2022-08-27T17:38:28","modified_gmt":"2022-08-27T12:08:28","slug":"indias-chip-making-gambit-ambitious-plans-or-breakthrough-strategy","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/indias-chip-making-gambit-ambitious-plans-or-breakthrough-strategy\/","title":{"rendered":"India’s chip-making gambit: Ambitious plans or breakthrough strategy?"},"content":{"rendered":"\n

Source<\/strong>: The post is based on an article\u202f\u201cIndia’s chip-making gambit: Ambitious plans or breakthrough strategy?<\/strong>\u201d\u202fpublished in\u202fThe Business Standard<\/strong>\u202fon\u202f27th\u202fAugust 2022<\/strong>.<\/p>\n

Syllabus: GS 3<\/strong>\u00a0\u2013 Government policies for various industries<\/p>\n

Relevance:\u202f<\/strong>advantages and concerns associated with the chip-making industry<\/p>\n

News: <\/strong>This article discusses the benefits and concerns associated with the decision of India, to enter the chip-making industry.<\/p>\n

What are chips and their uses?<\/strong><\/h5>\n

Chips, or integrated circuits imprinted on silicon wafers, are at the heart of every kind of manufacturing industry from automobiles to telecom gear, and from defense equipment to solar panels.<\/p>\n

They will become even more important in a world of artificial intelligence and electric cars, which need many more chips than petrol-driven cars.<\/p>\n

Where does the world stand in chip-making?<\/strong><\/h5>\n

The US has offered incentives of $52 billion, and it leads in logic chip design.<\/p>\n

The European Union is topping up an earlier offer of $30 billion.<\/p>\n

China reportedly subsidizes its chip manufacturing to the extent of $15 billion annually.<\/p>\n

Samsung plans to invest $200 billion in new chip factories.<\/p>\n

What is the situation of India in chip making?<\/strong><\/h5>\n

It has offered an unprecedented $10 billion as capital subsidy to the chip manufacturing industry.<\/p>\n

India\u2019s chip-making decision is a part of providing an incentive-based push into electronic manufacturing.<\/p>\n

It has already been successful in manufacturing the mobile handset.<\/p>\n

Chip manufacturers proposing to locate in India might look at mid-range chips (28 nm) used by the automobile industry and some smartphones.<\/p>\n

India has strengths in chip designing and also has the advantage of being the labor-intensive country in making the chips.<\/p>\n

It could do well in downstream product assembly, as it has done with mobile handsets.<\/p>\n

India is looking for a full spectrum approach rather than a specialized approach. The full spectrum approach will replace imports of both chips and downstream products.<\/p>\n

What are the concerns associated with the chip industry?<\/strong><\/h5>\n

First,<\/strong> it requires a huge amount of cash for advanced research and super-expensive production facilities.<\/p>\n

Second,<\/strong> even though India goes for a full spectrum approach, it will be dependent on upstream imports for materials and production equipment.<\/p>\n

Third,<\/strong> Taiwan supplies chips more than half of the world\u2019s supply, and it would be a matter of concern if Taiwan is attacked by China.<\/p>\n

Fourth,<\/strong> Russia and Ukraine are the leading suppliers of neon gas and palladium which is required in the chip-making industry and the conflict between these two will be a matter of concern.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on an article\u202f\u201cIndia’s chip-making gambit: Ambitious plans or breakthrough strategy?\u201d\u202fpublished in\u202fThe Business Standard\u202fon\u202f27th\u202fAugust 2022. Syllabus: GS 3\u00a0\u2013 Government policies for various industries Relevance:\u202fadvantages and concerns associated with the chip-making industry News: This article discusses the benefits and concerns associated with the decision of India, to enter the chip-making industry. What… Continue reading India’s chip-making gambit: Ambitious plans or breakthrough strategy?<\/span><\/a><\/p>\n","protected":false},"author":10308,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216],"class_list":["post-202285","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700776065,"cached_date":1704955552},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/202285","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10308"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=202285"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/202285\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=202285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=202285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=202285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}