The growing chip demand

When chip shortages first shut down automotive production lines in 2021, the semiconductor industry found itself in an unaccustomed spotlight. Suddenly everyone was talking about the tiny chips that enable many different functions. When some high-tech and consumer-electronics companies began to experience chip shortages or voiced concerns about supply chains, the attention intensified. It’s now clear to all: We are living in a semiconductor world. Chip shortages have been aggravated by the pandemic and the confluence of problems has led to the semiconductor shortage.

India's chip demand is growing at nearly double the global rate each year. By 2030, India semiconductor demand is going to reach $110 billion. So, by that time, it will be over 10% of global demand.

In addition to a massive domestic market, India has an ample pool of engineers, which will help the country attract foreign investors and overhaul the local electronics industry.

India will spend $30 billion to overhaul in the tech industry and build up a chip supply chain and is aimed at increasing local production of semiconductors, displays, advanced chemicals, networking and telecom equipment as well as batteries and electronics, said Gourangalal Das, director-general of the India-Taipei Association, the South Asian country's de-facto embassy in Taipei. Das said his country is looking to bring in more mature chips. These include chips made with the relatively less advanced 65-nanometer to 28-nanometer production technologies and are widely used in connectivity chips, display drivers, controller chips for electronic products and electric vehicles.

The advantage of India is having a large number of engineers, natural resources for metals, gas and chemicals. For instance, India is the world's leading producer of sulfuric acid and ammonia, which, after being purified, can be used in chip manufacturing processes.

Apart from chips, India sees displays as critical components, as it hopes to become more self-sufficient in the production of TVs, tablets, smartphones and automobiles. Secondly, India is looking at LCD display technology, which is widely used in TVs, but also at the higher-end OLED displays that have become the mainstream in premium and foldable smartphones. Given the reason, the demand is going to grow and you cannot be in a perpetual state of import dependency.