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Indian MSMEs could seize the opportunity to emerge as the leading semi-con supplier:

Global Semi-conductors supply chain take a hit over Taiwan-China tensions

By Shankar Krishnan --
Monday, 08 Aug, 2022

MSMEs from India dealing in the Auto, Consumer Electronics, LEDs & Lighting fixtures and the Power sector are battling the semi-conductor chip shortage caused because of the ongoing tensions between Taiwan and China.The global semi-con chip supply chain is highly dependent on Taiwan. Just as the Indian Auto industries was emerging from its worst slow-down ever, it appears that semi-conductor supply crisis have worsened the situation.

**TOP CHIP MAKERS IN 2021**
NAME OF THE COUNTRY	SHARE IN PRODUCTION
Taiwan	60%
South-Korea	18%
China	7%
Others	15%

World is dangerously dependent on Taiwan for its chip supply. The high tech companies are on the mercy of foreign nations.

“You never want to be in a spot where another nation can control a valuable resource that your nation depends on” IBM in March 2021.

India's Union cabinet has allocated an amount of Rs. 76000 crore for development of a 'Semi-conductors and display manufacturing system'. India has also launched'Scheme for promotion of Manufacturing of electronic components & semi-conductors' (SPECS) Scheme. The Global semi-con market is projected to be 1.2 $ trillion by 2030, India needs to be well positioned to capture it. This is the right opportunity for Indian MSMEs to set up production houses for semi-con chips. India's semi-conductor diplomacy can help overcome this problem. Semi-con diplomacy should be at the heart of India's foreign policy.

Establishment of a value chain for semi-conductors would ensure a multiplier effect on the entire economy. Domestic production would be saving India's forex & reduce Balance of payments. India should establish a Strategic partnership with Taiwan which has been a leading global hub for semi-conductor design and manufacturing. Indian MSMEs along with the Government's support need to seize this opportunity and develop a robust ecosystem for semi-con design and manufacturing.

Source : India today & Drishti IAS

Global Semi-conductors supply chain take a hit over Taiwan-China tensions. <big>MSMEs from India dealing in the Auto, Consumer Electronics, LEDs & Lighting fixtures and the Power sector are battling the semi-conductor chip shortage caused because of the ongoing tensions between Taiwan and China.The global semi-con chip supply chain is highly dependent on Taiwan. Just as the Indian Auto industries was emerging from its worst slow-down ever, it appears that semi-conductor supply crisis have worsened the situation.</big>

<table border="2" cellpadding="1" cellspacing="1">
 <caption><big>TOP CHIP MAKERS IN 2021</big></caption>
 <tbody>
 <tr>
 <td><big>        NAME OF THE COUNTRY</big></td>
 <td><big>      SHARE IN PRODUCTION</big></td>
 </tr>
 <tr>
 <td><big>                    Taiwan</big></td>
 <td><big>                    60% </big></td>
 </tr>
 <tr>
 <td><big>                South-Korea</big></td>
 <td><big>                    18%</big></td>
 </tr>
 <tr>
 <td><big>                    China</big></td>
 <td><big>                     7%</big></td>
 </tr>
 <tr>
 <td><big>                   Others</big></td>
 <td><big>                    15%</big></td>
 </tr>
 </tbody>
</table>

<big>World is dangerously dependent on Taiwan for its chip supply. The high tech companies are on the mercy of foreign nations.</big>

<blockquote>
<big>“You never want to be in a spot where another nation can control a valuable resource that your nation depends on” IBM in March 2021.</big>
</blockquote>

<big>India's Union cabinet has allocated an amount of Rs. 76000 crore for development of a 'Semi-conductors and display manufacturing system'. India has also launched'Scheme for promotion of Manufacturing of electronic components & semi-conductors' (SPECS) Scheme. The Global semi-con market is projected to be 1.2 $ trillion by 2030, India needs to be well positioned to capture it. This is the right opportunity for Indian MSMEs to set up production houses for semi-con chips. India's semi-conductor diplomacy can help overcome this problem. Semi-con diplomacy should be at the heart of India's foreign policy.</big>

<big>Establishment of a value chain for semi-conductors would ensure a multiplier effect on the entire economy. Domestic production would be saving India's forex & reduce Balance of payments. India should establish a Strategic partnership with Taiwan which has been a leading global hub for semi-conductor design and manufacturing. Indian MSMEs along with the Government's support need to seize this opportunity and develop a robust ecosystem for semi-con design and manufacturing.</big>

<big>Source : India today & Drishti IAS</big>