India’s leading role and semi-conductors shortage

India’s leading role and semi-conductors shortage

Team Ambitiousbaba and AB are here with a Current Affairs Special Series. In this series, candidates will be introduced to current affairs topics daily, which will not only improve their general awareness but also will ensure that the candidates do not lack in any current affairs topic. Today’s Current Affairs topic is “India’s leading role and semi-conductors shortage

India’s information and technology minister Ashwini Vaishnaw said that, India hopes for at least a dozen semiconductor manufacturers for setting up local factories in the next 2-3 years after the South Asian nation offered incentives for the sector.

Government of Narendra Modi is figuring out on development an entire ecosystem for the chip manufacturing industry and it will start taking applications under the incentive schemes from 1st January, 2022.

What is semi-conductor chip?

It is an electric chip consist many components like transistors and wiring formed on a semiconductor wafer. This number of components is known as IC ‘Integrated Circuit’.

Why semiconductor chip shortages arise?

Taiwan’s Taiwan Semiconductor Manufacturing company is the largest manufacturer of chips in the world. It has acquired around more than half of the global production of chips.

As China is claiming its dominance on Taiwan, the relation between USA and China is a major factor for this shortage.

The sharp incline in sales of electronic devices during the pandemic has created huge demand of semiconductors.

Halting production due to the Covid-19 in factories is also a major reason behind this shortage.

Industries which are affected worst:

All business and industries in the world are affected adversely due to shortages in semiconductors but major of them are as follows: Aero Space, Defence Sector, Telecom sector, Automobile sector, military and electronic manufacturing industry.

How’s the response of Government:

The response has been very good and quick.

Many big players are in talks with Indian partners and many of them assure to come directly to establish their units in India.

Government of India’s help:

In the last week the Modi government has given approval for sops worth Rs 76,000 crore rupees ($10 billion) spread over six years to boost local chip production.

This decisive step is likely to aid the South Asian nation by reducing its dependence on costly imports of the material used in every electronic item including mobile phones, electric vehicles amid a global shortage. Currently, India is depending on overseas manufacturers for its need of semiconductor.

The government has already given its plan and hopes for compound semiconductor units and design and packaging companies to get approval within the next 3-4 months.

Effect with telecom sector:

On the proposed 5G auctions the telecoms regulator is withstanding consultations with industry and it is going to submit its recommendations by March next year.

The spectrum pricing is anticipated to be “reasonable”.

The government targets to start 5G services by October-December 2022.

Questions & Answer:

Q1. How much crore of incentives has been approved for semiconductor chip manufacturers?
Ans. Rs. 76 thousand crores ($10 billion dollar)

Q2. Who is the union minister of Electronics & Information technology?
Ans. Ashwini Vaishnaw

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