Indian Electronics and Semiconductor manufacturing industry

Haldilal

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aragonishere

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Ya'll Nibbiars I already knew that but dosnt posted any no news was there. And this was due to the Chip shortage happened already in planning for the last one year.
It is right time to get into it. With big Industrialist like TATA going big into it, there will be good results in long term.
 

aragonishere

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The Tata group has named Intel Corp.’s chief supply officer and head of chip business Randhir Thakur as a director at its subsidiary Tata Electronics Ltd as it looks to enter chip manufacturing, the bedrock of modern technology.

Thakur is a semiconductor industry veteran who was entrusted by Intel’s chief executive Pat Gelsinger to head the chipmaker’s standalone foundry business in March.

 

sorcerer

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XPOST

Indigenous memory technology adoption for 180 nm CMOS production: A national milestone in semiconductor R&D

A tiny memory to make chips “perfect”


Posted On: 17 AUG 2021 8:01PM by PIB Delhi



The natural world is analog while computing is digital. Computers perceive the natural world through sensorchips whose output is analog. The analog output is converted into the language of computers through a digitizer chip or an analog to digital converter (ADC). Foundries mass-produce these chips. Ideally, these chips should be identical but manufacturing variations produce tiny offsets which are revealed upon testing. This renders a large fraction of chips useless. The tiny offset may be stored in memory once and applied to the output afterward to make each imperfect chip, “perfect”! Using this method,generic chips can now be designed and application-specific offsets added to make expensive custom chip design redundant, saving time and money for the user.


Chip technology gaps became the focus of investigation for Indian researchers asthe demand for semiconductors increased inthe country and globally. The Government of India took cognizance of the significance of R&D in innovation-drivensemiconductor manufacturing.TheyimprovedR&D capacity by buildingCentres for Excellence in Nanoelectronics (CENs);the firstones being atIIT Bombay and the Indian Institute of Science. This led to a transformed semiconductor research ecosystem making the country a major contributor to electron device-related research.


The next challenge was to translate research to manufacturing. The semiconductor manufacturing ecosystem in India is led by Semi-Conductor Laboratory (SCL), Mohali, Department of Space, Government of India, and is the most advanced semiconductor manufacturing fab (a large facility with cleanroom environments used to produce memory chips) in the country.


The success of the “Digital India” initiative by the Government of India has underpinnings in our country’s ability to manufacture electronics hardware. The focus on electronics hardware including integrated circuits or chips is key to strengthen R&D primarily in the Space and Defense sectors. Development of standards, product design or IP development, and semiconductor manufacturing are increasingly important. Improving India’s participation in this area is a major priority for R&D in India. The partnership between IIT Bombay and SCL to establish this memory technology for the first time demonstrates the augmented potential for semiconductor research in the country”, said Prof. K. VijayRaghavan, Principal Scientific Adviser (PSA) to the Government of India.


IIT Bombay partnered with SCL to successfully demonstrate CMOS 180nm based production-ready 8-bit memory technology. IIT Bombay invented the one-time programmable (OTP) memory based on ultra-thin deposited silicon dioxide (a few atoms thick) instead of the existing gate oxide-based OTP technology. In contrast to the high voltage required by gate oxide breakdown (a popular OTP memory), IIT Bombay’s memory chip requires less power and chip-area as the need for boosted voltage supply is avoided.“Memory technology is critical to data security. It is essential for present and future Indian Fabs. To infuse innovation, translating memory technology from research to manufacturing is the key to compete globally and serve locally to establish a vibrant semiconductor ecosystem. The OTP Memory Technology Adoption for Trimming Application by the joint IIT Bombay - SCL Chandigarh teams is a pioneering step in this direction. It will be a gamechanger by enabling secure memory and encryption hardware for the country.” Dr. V.K. Saraswat, Member, NITI Aayog.


The team at IIT Bombay was supported by the Department of Science and Technology’s Intensification of Research in High Priority Area (IRHPA).Aspects of the work were funded byMeitY/DST’s Nanoelectronics Network for Research and Applications (NNetRA)supportsthe memory application,DST-Advanced Manufacturing Technologies, and the Office of PSA for hardware security.The team at IIT Bombay partnered with IITDelhi,SETS Chennai, and DRDOfor hardware encryption.


One out of 100 ideas make the journey from Lab to Fab. The exacting process of exceeding 95% yield requires an unrelenting multi-disciplinary team supported by a world-class R&D infrastructure to form an enduring collaboration. Once successful such technology opens possibilities of touching countless lives, in this case, through chips with a tiny memory,” said Prof. Udayan Ganguly, who leads the team at IIT Bombay.
 

Tang

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IIT Bombay partnered with SCL to successfully demonstrate CMOS 180nm based production-ready 8-bit memory technology. IIT Bombay invented the one-time programmable (OTP) memory based on ultra-thin deposited silicon dioxide (a few atoms thick) instead of the existing gate oxide-based OTP technology. In contrast to the high voltage required by gate oxide breakdown (a popular OTP memory), IIT Bombay's memory chip requires less power and chip-area as the need for boosted voltage supply is avoided.
This is a major national milestone for a first-of-its-kind endeavor for indigenous technology translation to adoption for volume production in a 180nm CMOS manufacturing line.


 

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The Semiconductor Heist Of The Century | Arm China Has Gone Completely Rogue, Operating As An Independent Company With Inhouse IP/R&D


August 27, 2021 Dylan Patel 4 Comments Allen Wu, Arm, China, ISP, NPU, Nvidia, Softbank, SPU, VPU
Arm is widely regarded as the most important semiconductor IP firm. Their IP ships in billions of new chips every year from phones, cars, microcontrollers, Amazon servers, and even Intel’s latest IPU. Originally it was a British owned and headquartered company, but SoftBank acquired the firm in 2016. They proceeded to plow money into Arm Holdings to develop deep pushes into the internet of things, automotive, and server. Part of their push was also to go hard into China and become the dominant CPU supplier in all segments of the market.

As part of the emphasis on the Chinese market, SoftBank succumbed to pressure and formed a joint venture. In the new joint venture, Arm Holdings, the SoftBank subsidiary sold a 51% stake of the company to a consortium of Chinese investors for paltry $775M. This venture has the exclusive right to license Arm’s IP within China. Within 2 years, the venture went rogue. Recently, they gave a presentation to the industry about rebranding, developing their own IP, and striking their own independently operated path.

This firm is called “安谋科技”, and is not part of Arm Holdings.

This is the tech heist of the century.



Before we get to the event they held and the significance of it, let’s do a recap. In 2020, Arm and a handful of the investors agreed to oust Allen Wu, the CEO of Arm China. He was ousted for using his position as the CEO of Arm to attract investments in his own firm, Alphatecture. Examples such as the following and more can be found here.

Mr Wu had offered discounts to Arm China customers in exchange for their investment in Alphatecture

Removing Allen Wu has proven to be very difficult. Despite a 7-1 vote by the Arm China board, the company seal was still held by Allen Wu. In China, the seal is a stamp which authorizes the person in possession to bind a company and its representatives with rights and obligations. Retrieving this seal and the business license would be a multiyear drawn-out legal process. Furthermore, it would mean at least some investors besides Arm must be along for the ride. The Chinese court system would need to agree with ousting an executive in favor of one that was hand selected by western influencers.

Despite formally being fired, Allen Wu has remained in power. He ousted executives that were loyal to Arm. He has even hired security paid for by Arm China that reports to him. This security has kept Arm out of the Arm China offices. Allen Wu has aggressively taken over the firm and is operating it how he sees fit. One interesting tidbit is that Allen Wu sued Arm China in order to declare his dismissal illegal. He essentially sued himself as he represented both sides in that specific court case.

Arm has retaliated by halting the transfer of any new IP. The latest CPU IP Arm China has is the Cortex A77. Major critical technologies such as the Neoverse server CPUs that make the backbone of Amazon Graviton and Ampere Computing have not been sent over the wall. In addition to these server CPU designs, many new developments in CPU, GPU, NPU, and fabrics have remained out of reach. The most important of these besides the server line itself, is the Armv9 instruction set. This is the new instruction set architecture that will power the next decade of high-performance Arm designs. Simultaneously, Arm has tried to appeal to the government stating that this is bad for the Chinese semiconductor industry.



This leads us to the present day, where Arm China held an event at which they formally declared their independence. They proclaimed that 安谋科技 is China’s largest CPU IP supplier. It was born from Arm, but is an independently operate, Chinese owned company.

The event comprised of cheering on 安谋科技 business. Some of the fanfare was emphasizing that 安谋科技 had a cumulative 20B shipments since formation. It has over 90 partners, 29 of which have achieved mass production of chips using the Arm IP. These shipments range from mobile, network infrastructure, 5G and IoT. They were developed by the company’s 400+ person R&D team that is based entirely in China.



Besides standing out and calling themselves an independent entity, they also announced new IP branding which is all independently developed. It is marketed under the XPU line. The IP blocks include NPUs, SPUs, ISPs, and VPUs, but they made it clear they will extend beyond this.

The NPU, neural processing unit, is especially interesting because Arm itself has also developed a range of AI geared IP. Some of that IP has not yet reached the doors of Arm China. 安谋科技 is forging ahead to have an independent source of IP and no longer rely on Arm. This is just the beginning, and who knows where 安谋科技 goes from here. Perhaps they even begin working on their own CPU core, GPU, and server designs.

Most of this IP is targeted at mobile or IoT type use cases. The SPU, security processing unit, is specifically geared to creating secure enclaves and being a management engine. The ISP, image signal processor, is meant to take inputs from cameras and process them into a digital form. It applies various techniques and operations to enhance the raw images. It is geared to work with the NPU to analyze images and videos in order to identify people, objects, and events. These IP blocks are critical for emerging applications which will deploy billions of cameras in China over the next decade. Lastly, there is the video processing unit which is meant to encode and decode videos in common formats such as H264, VP9, and soon AV1.



Arm China, 安谋科技, is asserting their independence. It is the most publicized instance of a joint venture in China going rogue, but also the most dangerous one. Over the decades IP has been taken and replicated in China, but this may be the most brazen attempt yet.

Arm has been shaken to its core with the 2nd largest market snatched from underneath it. While they are the largest individual owner in this firm, they have no control or power over it. 安谋科技 has set out on its own path and begun to develop its own IP. The base of Arm’s old IP is not the end of their line. There are many questions swirling about what this means for a potential Nvidia takeover or IPO, but it is clear that SoftBank’s short sighted profit driven behavior has caused a massive conundrum.


Excellent plan executed by China. Wish we had visionary politicians like Chinese. Buy if it's for sale, rob if not selling, copy of both not possible...😊
 

Dark Sorrow

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India Accelerates Talks With Taiwan on Chip Plant, Trade Deal

(Bloomberg) -- India and Taiwan are in talks on an agreement that could bring chip manufacturing to South Asia along with tariff reductions on components for producing semiconductors by the end of the year, people familiar with the matter said, a move that may spark fresh tensions with China.
Officials in New Delhi and Taipei have met in recent weeks to discuss a deal that would bring a chip plant worth an estimated $7.5 billion to India to supply everything from 5G devices to electric cars, the people said. India is currently studying possible locations with adequate land, water and manpower, while saying it would provide financial support of 50% of capital expenditure from 2023 as well as tax breaks and other incentives, the people said.
Officials in Taipei wanted quick progress on a bilateral investment agreement that would include tariff reductions on dozens of products used to make semiconductors -- a precursor to a broader trade deal also under consideration, the people said.
The people asked not to be identified to discuss negotiations that were currently ongoing. The Office of Trade Negotiations under Taiwan’s cabinet declined to comment, while a spokesperson for India’s trade ministry didn’t immediately respond to a text message.
The trade talks come at a time when democracies across the world are boosting economic and military links to stand up against an increasingly assertive China. While Taiwan has long sought a trade deal with India, officials in New Delhi had been hesitant to anger Beijing, which claims the island democracy as its territory.

The discussions have accelerated in recent weeks as U.S. President Joe Biden seeks to shore up supplies of chips, strengthen supply chains among democracies and improve military capabilities in the region. On Friday, he’ll host Indian Prime Minister Narendra Modi along with the leaders of Australia and Japan as part of the Quad meeting, a group that is countering China’s influence.
India has also taken a bolder stance against China since a protracted border standoff following violent clashes in 2020 in which at least 20 Indian and four Chinese soldiers were killed.
While India and Taiwan are laying the groundwork to discuss a comprehensive trade deal covering goods, services and investments, officials in Taipei are seeking to revise the investment deal to show some early progress.
India has sought to lure high-technology investments as it seeks to become more self-reliant on chips, while Taiwan wants to strengthen its diplomatic presence around the globe as it pushes back against the pressure from China. Beijing has vowed to work toward unifying the island democracy with the mainland, even by force if necessary.

Chip shortages have delayed the much-anticipated launch of a smartphone by billionaire Mukesh Ambani’s Reliance Industries Ltd. that has been co-engineered with Google. Currently India imports almost all semiconductors to meet demand estimated to reach around $100 billion by 2025 from about $24 billion now.
Taiwan has welcomed cooperation between the two sides on semiconductors although it is still evaluating the proposal given a lack of ecosystem for setting up a chip fabrication plant in India, people familiar with the matter said. The Taiwan side has flagged concerns on the supply of water and electricity, and suggested that it may be more feasible for India to start creating a chip design sector first before proceeding to building fabs, according to one of the people.
India and Taiwan in 2018 signed a bilateral investment agreement to promote investment flows and expand economic ties between the two nations. Trade between them stood at $5.6 billion in the fiscal year ended March, according to India’s trade ministry.

 

Dark Sorrow

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Semiconductor issue | India in talks with Taiwan to bring chip manufacturing in South Asia

Almost all of the world’s semiconductors – the foundation of every-day electronics – are made by one company, Taiwan Semiconductor Manufacturing Co. (TSMC). But as demand for chips increases exponentially with the relentless march of technology, the company’s dominance puts the world in a vulnerable position as Taiwan remains the focal point of tensions between the US and China, which claims Taiwan as its own territory.

1632752047246.png


Almost all of the world’s semiconductors – the foundation of every-day electronics – are made by one company, Taiwan Semiconductor Manufacturing Co. (TSMC). But as demand for chips increases exponentially with the relentless march of technology, the company’s dominance puts the world in a vulnerable position as Taiwan remains the focal point of tensions between the US and China, which claims Taiwan as its own territory. In recent weeks, India and Taiwan have been working on a deal to bring chip manufacturing to South Asia. (Image: News18 Creative)
The trade talks between India and Taiwan come at a time when democracies across the world are boosting economic and military links to stand up against an increasingly assertive China. (Image: News18 Creative)


The trade talks between India and Taiwan come at a time when democracies across the world are boosting economic and military links to stand up against an increasingly assertive China. (Image: News18 Creative)
Taiwan’s world domination. (Image: News18 Creative)


Taiwan’s world domination. (Image: News18 Creative)
TSMC has become indispensable to both US and China. (Image: News18 Creative)


TSMC has become indispensable to both US and China. (Image: News18 Creative)


TSMC invests heavily in cutting-edge chip factories (known as fabs). It has also stopped cutting prices. TSMC can charge between twice and three times as much per silicon wafer made using its most advanced processes, compared with what the next-most-advanced technology will fetch. (Image: News18 Creative)


TSMC invests heavily in cutting-edge chip factories (known as fabs). It has also stopped cutting prices. TSMC can charge between twice and three times as much per silicon wafer made using its most advanced processes, compared with what the next-most-advanced technology will fetch. (Image: News18 Creative)
Over the past few years, TSMC has increased its R&D spending. (Image: News18 Creative)


Over the past few years, TSMC has increased its R&D spending. (Image: News18 Creative)
Current shortages of processors primarily reflect the strength of demand, but the concentration of their production in Taiwan heightens the threat of a shock to supply. (Image: News18 Creative)


Current shortages of processors primarily reflect the strength of demand, but the concentration of their production in Taiwan heightens the threat of a shock to supply. (Image: News18 Creative)

 

Dark Sorrow

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India, Taiwan May Ink Mega Deal to Set Up $7.5 bn Chip Manufacturing Plant. Here's Why it's Global Rescue

New Delhi and Taipei have met in recent weeks to discuss a deal that would bring a chip plant worth an estimated $7.5 billion to India.

In order to address the global semiconductor chip shortage issue, India is in talks with Taiwan. According to an exclusive report by Bloomberg, this could bring chip manufacturing to South Asia along with tariff reductions on components for producing semiconductors by the end of the year.

The Bloomberg report said that officials in New Delhi and Taipei have met in recent weeks to discuss a deal that would bring a chip plant worth an estimated $7.5 billion to India to supply everything from 5G devices to electric cars

World leaders and executives at multinational corporations have been worried about the global scarcity of semiconductors, which has hit manufacturing and sales in numerous countries and no early solution is in sight.

What caused the semiconductor shortage?
Semiconductors, or chips, have properties that are somewhere between conductors and insulators. Usually made of silicon, they are used to power a wide range of devices - cars, laptops, smartphones, household appliances and gaming consoles.

These tiny objects perform a host of functions such as powering displays and transferring data. So, a supply crunch has a consequent impact on sales of cars, fridges, laptops, TVs and other electronic devices.

Manufacturing cannot be increased on short notice. As a Bloomberg report points out, making chips is a complex process that takes months.

Taiwan Semiconductor Manufacturing Corporation (TSMC) is the world’s largest contract chipmaker, whose customers include Qualcomm, Nivdia and Apple. It holds 56 percent of the foundry business of manufacturing chips.

The surge in sales for electronic devices during the pandemic created a huge demand for semiconductors. But COVID-19 is not the only factor behind the shortage.

The tense relationship between the United States and China is also a factor, since many US companies do business with Chinese companies. For instance, Huawei, which supplied to American chip makers, has been blacklisted by the US government.

What are the possible fallouts?
Since production cannot be pushed at short notice, it takes chip manufacturers a long time to catch up with demand.

A report published by Gartner in May estimates that the chip shortage across categories of devices could continue well into the second quarter of 2022.

“The semiconductor shortage will severely disrupt the supply chain and will constrain the production of many electronic equipment types in 2021. Foundries are increasing wafer prices, and in turn, chip companies are increasing device prices," said Kanishka Chauhan, principal research analyst at Gartner.

One report by Bloomberg points out that chip lead times, or the period between ordering semiconductors and delivery, rose to a record 21 weeks in August, from six weeks in July.

According to data from Society of Indian Automobile Manufacturers (SIAM), automobile wholesales in India declined 11 percent year-on-year in August.

Maruti Suzuki, India’s largest carmaker, will see a 60 percent cut in production in September due to shortage in supply of semiconductors.

Mahindra and Mahindra M&M said it would cut output by 20-25 percent in September due to the semiconductor shortage. The automaker will observe seven “no production days" at its automotive plants during the month.

There is a strong likelihood that the semiconductor shortage will impact sales during the upcoming festive season in India.

What about laptops, smartphones etc?
Production of electronic devices has also been impacted by the shortage of semiconductors.

During a post-earnings call with analysts, Apple CEO Tim Cook had said that “supply constraints will hurt sales of iPads and iPhones. Cook said the shortage is not in high-powered processors, but “legacy nodes,” or chips that perform functions like driving displays or decoding audio, which can be manufactured using older equipment.

South Korea’s largest conglomerate Samsung Group had in August said it would invest 240 trillion won ($206 billion) in the next three years to expand its footprint in biopharmaceuticals, artificial intelligence, semiconductors and robotics.

Many tech companies have begun developing their own chips, a move that will not only alleviate the current supply concerns but will likely help the industry in the long-run.

 

LondonParisTokyo

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India, Taiwan May Ink Mega Deal to Set Up $7.5 bn Chip Manufacturing Plant. Here's Why it's Global Rescue

New Delhi and Taipei have met in recent weeks to discuss a deal that would bring a chip plant worth an estimated $7.5 billion to India.

In order to address the global semiconductor chip shortage issue, India is in talks with Taiwan. According to an exclusive report by Bloomberg, this could bring chip manufacturing to South Asia along with tariff reductions on components for producing semiconductors by the end of the year.

The Bloomberg report said that officials in New Delhi and Taipei have met in recent weeks to discuss a deal that would bring a chip plant worth an estimated $7.5 billion to India to supply everything from 5G devices to electric cars

World leaders and executives at multinational corporations have been worried about the global scarcity of semiconductors, which has hit manufacturing and sales in numerous countries and no early solution is in sight.

What caused the semiconductor shortage?
Semiconductors, or chips, have properties that are somewhere between conductors and insulators. Usually made of silicon, they are used to power a wide range of devices - cars, laptops, smartphones, household appliances and gaming consoles.

These tiny objects perform a host of functions such as powering displays and transferring data. So, a supply crunch has a consequent impact on sales of cars, fridges, laptops, TVs and other electronic devices.

Manufacturing cannot be increased on short notice. As a Bloomberg report points out, making chips is a complex process that takes months.

Taiwan Semiconductor Manufacturing Corporation (TSMC) is the world’s largest contract chipmaker, whose customers include Qualcomm, Nivdia and Apple. It holds 56 percent of the foundry business of manufacturing chips.

The surge in sales for electronic devices during the pandemic created a huge demand for semiconductors. But COVID-19 is not the only factor behind the shortage.

The tense relationship between the United States and China is also a factor, since many US companies do business with Chinese companies. For instance, Huawei, which supplied to American chip makers, has been blacklisted by the US government.

What are the possible fallouts?
Since production cannot be pushed at short notice, it takes chip manufacturers a long time to catch up with demand.

A report published by Gartner in May estimates that the chip shortage across categories of devices could continue well into the second quarter of 2022.

“The semiconductor shortage will severely disrupt the supply chain and will constrain the production of many electronic equipment types in 2021. Foundries are increasing wafer prices, and in turn, chip companies are increasing device prices," said Kanishka Chauhan, principal research analyst at Gartner.

One report by Bloomberg points out that chip lead times, or the period between ordering semiconductors and delivery, rose to a record 21 weeks in August, from six weeks in July.

According to data from Society of Indian Automobile Manufacturers (SIAM), automobile wholesales in India declined 11 percent year-on-year in August.

Maruti Suzuki, India’s largest carmaker, will see a 60 percent cut in production in September due to shortage in supply of semiconductors.

Mahindra and Mahindra M&M said it would cut output by 20-25 percent in September due to the semiconductor shortage. The automaker will observe seven “no production days" at its automotive plants during the month.

There is a strong likelihood that the semiconductor shortage will impact sales during the upcoming festive season in India.

What about laptops, smartphones etc?
Production of electronic devices has also been impacted by the shortage of semiconductors.

During a post-earnings call with analysts, Apple CEO Tim Cook had said that “supply constraints will hurt sales of iPads and iPhones. Cook said the shortage is not in high-powered processors, but “legacy nodes,” or chips that perform functions like driving displays or decoding audio, which can be manufactured using older equipment.

South Korea’s largest conglomerate Samsung Group had in August said it would invest 240 trillion won ($206 billion) in the next three years to expand its footprint in biopharmaceuticals, artificial intelligence, semiconductors and robotics.

Many tech companies have begun developing their own chips, a move that will not only alleviate the current supply concerns but will likely help the industry in the long-run.

This should be signed and advanced on a National Security basis. Get land anywhere (idk why but I feel Odisha is a good state, or maybe Karnataka) with basically seizure. Give 100% sops, whatever is needed. Get this done.
 

Crazywithmath

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This should be signed and advanced on a National Security basis. Get land anywhere (idk why but I feel Odisha is a good state, or maybe Karnataka) with basically seizure. Give 100% sops, whatever is needed. Get this done.
At least two more proposals are pending as well :)
 

ezsasa

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The surge in sales for electronic devices during the pandemic created a huge demand for semiconductors. But COVID-19 is not the only factor behind the shortage.
Does anyone remember from which month last year(or year before) semi conductor shortage was in news, and what was the reason given when this was first reported ?
 

Dark Sorrow

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Does anyone remember from which month last year(or year before) semi conductor shortage was in news, and what was the reason given when this was first reported ?
It was reported much later but me personally started facing this issue from May-2020.
I was unable to import couple of ICs that I needed.
 

HitmanBlood

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India, Taiwan May Ink Mega Deal to Set Up $7.5 bn Chip Manufacturing Plant. Here's Why it's Global Rescue

New Delhi and Taipei have met in recent weeks to discuss a deal that would bring a chip plant worth an estimated $7.5 billion to India.

In order to address the global semiconductor chip shortage issue, India is in talks with Taiwan. According to an exclusive report by Bloomberg, this could bring chip manufacturing to South Asia along with tariff reductions on components for producing semiconductors by the end of the year.

The Bloomberg report said that officials in New Delhi and Taipei have met in recent weeks to discuss a deal that would bring a chip plant worth an estimated $7.5 billion to India to supply everything from 5G devices to electric cars

World leaders and executives at multinational corporations have been worried about the global scarcity of semiconductors, which has hit manufacturing and sales in numerous countries and no early solution is in sight.

What caused the semiconductor shortage?
Semiconductors, or chips, have properties that are somewhere between conductors and insulators. Usually made of silicon, they are used to power a wide range of devices - cars, laptops, smartphones, household appliances and gaming consoles.

These tiny objects perform a host of functions such as powering displays and transferring data. So, a supply crunch has a consequent impact on sales of cars, fridges, laptops, TVs and other electronic devices.

Manufacturing cannot be increased on short notice. As a Bloomberg report points out, making chips is a complex process that takes months.

Taiwan Semiconductor Manufacturing Corporation (TSMC) is the world’s largest contract chipmaker, whose customers include Qualcomm, Nivdia and Apple. It holds 56 percent of the foundry business of manufacturing chips.

The surge in sales for electronic devices during the pandemic created a huge demand for semiconductors. But COVID-19 is not the only factor behind the shortage.

The tense relationship between the United States and China is also a factor, since many US companies do business with Chinese companies. For instance, Huawei, which supplied to American chip makers, has been blacklisted by the US government.

What are the possible fallouts?
Since production cannot be pushed at short notice, it takes chip manufacturers a long time to catch up with demand.

A report published by Gartner in May estimates that the chip shortage across categories of devices could continue well into the second quarter of 2022.

“The semiconductor shortage will severely disrupt the supply chain and will constrain the production of many electronic equipment types in 2021. Foundries are increasing wafer prices, and in turn, chip companies are increasing device prices," said Kanishka Chauhan, principal research analyst at Gartner.

One report by Bloomberg points out that chip lead times, or the period between ordering semiconductors and delivery, rose to a record 21 weeks in August, from six weeks in July.

According to data from Society of Indian Automobile Manufacturers (SIAM), automobile wholesales in India declined 11 percent year-on-year in August.

Maruti Suzuki, India’s largest carmaker, will see a 60 percent cut in production in September due to shortage in supply of semiconductors.

Mahindra and Mahindra M&M said it would cut output by 20-25 percent in September due to the semiconductor shortage. The automaker will observe seven “no production days" at its automotive plants during the month.

There is a strong likelihood that the semiconductor shortage will impact sales during the upcoming festive season in India.

What about laptops, smartphones etc?
Production of electronic devices has also been impacted by the shortage of semiconductors.

During a post-earnings call with analysts, Apple CEO Tim Cook had said that “supply constraints will hurt sales of iPads and iPhones. Cook said the shortage is not in high-powered processors, but “legacy nodes,” or chips that perform functions like driving displays or decoding audio, which can be manufactured using older equipment.

South Korea’s largest conglomerate Samsung Group had in August said it would invest 240 trillion won ($206 billion) in the next three years to expand its footprint in biopharmaceuticals, artificial intelligence, semiconductors and robotics.

Many tech companies have begun developing their own chips, a move that will not only alleviate the current supply concerns but will likely help the industry in the long-run.

I hope this deal materialises. There is a global chip shortage and certain countries want an alternative of China regarding sensitive technology.

I hope gov clinches this golden oppertunity.

At least two more proposals are pending as well :)
Lets hope all 2 proposals and this Taiwanese fab gets fast tracked as soon as possible. We need all we can get in semiconductor manufacturing.
 

HitmanBlood

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Any updates?
Unfortunately nothing confirmed yet.

The way system works in India, it will be months if not years before we see any news in this front. Gov came out with an incentive scheme for semiconductors last year. One year later still nothing confirmed.

The biggest problem plaguing Indian semiconductor dream is slow decision making of Indian bureaucracy. There are already some proposals for semiconductor fabs that are stuck in bureaucratic process.

There is an Israeli company who wants to make semiconductors in India but gov has not responded to their request at all. They got frustrated with Indian system and wrote a strongly worded letter to PMO. Still nothing on that front.


In 2007 Intel wanted to open Asia's largest semiconductor fab in India but gov at that time was slow and not cooperating. So Intel cancelled their India plan and opened their fab in China instead.


Semiconductor is a very important technology for future. It requires big investment and has to be executed in time bound manner. Indian gov must setup a fast track system otherwise we will miss semiconductor bus again.
 
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afako

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Unfortunately nothing confirmed yet.

The way system works in India, it will be months if not years before we see any news in this front. Gov came out with an incentive scheme for semiconductors last year. One year later still nothing confirmed.

The biggest problem plaguing Indian semiconductor dream is slow decision making of Indian bureaucracy. There are already some proposals for semiconductor fabs that are stuck in bureaucratic process.

There is an Israeli company who wants to make semiconductors in India but gov has not responded to their request at all. They got frustrated with Indian system and wrote a strongly worded letter to PMO. Still nothing on that front.


In 2007 Intel wanted to open Asia's largest semiconductor fab in India but gov at that time was slow and not cooperating. So Intel cancelled their India plan and opened their fab in China instead.


Semiconductor is a very important technology for future. It requires big investment and has to be executed in time bound manner. Indian gov must setup a fast track system otherwise we will miss semiconductor bus again.
Such projects have direct link with PMO office with regular follow up and updates from both sides.

The bureaucracy will be f*cked up big time if it turned out that it is caught responsible for canceling such a project.

Look at the above chart, TSMC earns 62% Revenue from USA, 20% from China, they are completely at mercy of both the countries and have to keep on fiddling. India is a very good way to dersik their business and geopolitical leverage that US and Chiba exert on Taiwan. No wonder this project has blessings all the way from Taipei.

Even if TSMC shifts 10% of their manufacturing, it would be a good deal for them considering it would be their first non West and non East Asia manufacturing plant ever. The US and its European poddles are also ok since this hurts China diverting electronic global supply chains from there.

Net net Covid and Trump trade wars are the biggest boon events for India since 1991.
 

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