Microchip are used in a wide variety of electronics devices including computers, smart phones, televisions, cars and appliances such as pacemakers etc.
Microchips are marvel of modern technology; they are small powerful and versatile. The first microchip was invented in 1958 by Jack Kilby at Texas instruments.
What are the border industry dynamics?
- A. Any policy directed towards the semiconductor industry be it manufacturing or design requires a long-term strategy as the sector is capital intensive and involves sizeable cost in:
- setting up fabrication units
- upscaling manufacturing capabilities and equipment such as thermal stimulators
- pushing research.
- B. Moreover, return from the investment are not immediate as setting up design and fabrication units involves long gestation periods.
Industry body NASSCOM says it takes up to 2 – 3 years before the first product is out.
- Chips designing require higher instrument than the traditional aggregator company.
- Supply chain disruption, could dampen potential investor’s confidence in the sector.
What is the domestic chip industry scenario?
- 1. India is an important destination for global semiconductor companies because of its highly skilled talent pool of semiconductor design engineers who make up about 20% of world’s workforce.
- About 2000 integrated circuits and chips are designed in India every year.
- 3. Global players operating R and D in the country include Intel, Micron, Qualcomm etc.
- Among other things, it is aspired to grow at least 20 companies in India scaling a turnover of more than Rs 1500 crores in the next five years.
Challenges:
Higher gestation period implies design firms are not able to attract potential investors and ventures.
Lack of venture capitalists in the private sector focused on semiconductor.