New Delhi [India], March 25 (ANI): The semiconductor sector in India is expanding; however, it encounters substantial obstacles including an immature infrastructure.
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According to a report by Jefferies, factors such as a scarcity of skilled manufacturing professionals, intense international rivalry, and swiftly advancing technologies are key issues.
The report highlighted that while India has several key advantages, including a strong engineering talent pool and government support, it must overcome hurdles to establish a competitive semiconductor ecosystem.
It stated, “The sector must also chart a course through the difficulties posed by underdeveloped”
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, scarce specialized manufacturing expertise, intense international rivalry, and swiftly advancing technology.”
A major hurdle lies in the restricted supply of crucial raw materials such as silicon wafers, high-purity gases, specialized chemicals, and ultrapure water—essentials needed for semiconductor production.
Although India boasts a robust chemical and gas production industry, notably in areas such as Dahej in Gujarat, businesses must improve their capacity to manufacture high-purity materials for semiconductors. The government has made the advancement of the entire semiconductor ecosystem a priority.
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including chemicals, gases, and machinery, to decrease reliance on imported products.
India accounts for approximately 20 percent of the worldwide semiconductor design workforce, showcasing its prowess in chip development. Nonetheless, there is a shortage of expertise in areas such as semiconductor manufacturing and validation.
To tackle this issue, the report indicated that businesses are focusing on enhancing skills, while the government is partnering with industries and academic institutions to develop specialized courses for semiconductor fabrication, assembly, and testing.
The report further highlighted that India encounters strong rivalry from prominent semiconductor centers like China, Singapore, Malaysia, South Korea, and Taiwan, regions that have invested years in developing their respective infrastructures.
As semiconductors gain greater strategic significance and the emphasis on them continues to grow,
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To boost security, numerous nations are providing subsidies and incentives to lure semiconductor producers.
To lure investments, India has introduced significant incentives, aiding in the launch of several semiconductor manufacturing initiatives.
Setting up sophisticated manufacturing plants, however, involves several risks such as initial production difficulties, problems with maintaining quality standards, and the challenge of reaching large-scale efficiency. The prosperity of India’s semiconductor sector hinges on establishing consistent demand for semiconductors within the country and abroad.
A key difficulty lies in staying abreast of swift technological progressions. Even as India is currently establishing its inaugural fabrication plant, international semiconductor firms are consistently advancing the frontiers of shrinking transistor sizes. Consequently, as a belated participant, India might need to commit substantial financial resources to keep pace competitively.
Even with these hurdles, India’s semiconductor sector holds significant growth potential through robust governmental backing, partnerships within the industry, and financial commitments to R&D. Creating a comprehensive semiconductor framework will be essential for India to emerge as a key competitor in the international chip market. (ANI)
Provided by Syndigate Media Inc. (
Syndigate.info
).
