Why Is There An Abrupt Indian Semiconductor Industry Growth?

Why Is There An Abrupt Indian Semiconductor Industry Growth?

There is an exponential Indian semiconductor industry growth. With the Covid-19 pandemic boosting up the demand for electronic devices, the semiconductor industry in India 2021 wishes to remain bright in the present financial year. With the Production Linked Incentives (PLI) scheme that provides customized incentives for the semiconductor manufacturers, a big increase is expected for electronic component and chip and equipment manufacturing in the country.

What Is Semiconductor?

A semiconductor is a substance that inculcates both the properties of a conductor and an insulator. It has the potential to conduct electricity under certain situations but not always. This property and physics of a semiconductor make it a proper medium to avail electricity in a controlled form as and when required. 

So it can be concluded that a semiconductor is a substance that carries the conductivity of electricity greater than an insulator but less than a conductor.

Types Of Semiconductors

Speaking broadly, semiconductors are mainly of 4 types. They are as follows:

  • Memory: Memory chips work as the temporary storehouse of data and pass data from and to computer devices’ brains. 
  • Microprocessor: These are the central processing units that have the primary logic to carry out tasks. 
  • Commodity Integrated Circuits: They are often called “standard chips” and are produced in big batches for the purpose of routine processes.
  • Complex SOC: SOC stands for “System On A Chip” and deals with the formulation of an integrated service chip having the capability of an entire system.

How Is Indian Semiconductor Industry Growth Viewed?

The IESA (Indian Electronics And Semiconductor Association) predicts a huge Indian semiconductor industry growth in this financial year as the demand for digital services and the electronic devices have increased since the onset of this global pandemic. After facing the initial hindrances last year during the prevailing pandemic this industry witnessed a rise in demand because of the increased interest in the devices for entertainment and work purposes. The chairman of IESA, Rajeev Khushu said, 

“The outlook is bright for 2021-22 as the requirement for electronics is not going to come down.”

Global Realignment Of Indian Semiconductor Industry Growth

Globally the semiconductor industry is presently at an interesting phase. According to Rajeev,

“Several countries have announced policies to boost the industry in their respective countries. We now have many countries competing with us. The biggest challenge we are facing is fierce competition from the US, Europe, and China.”

There is a lot of realignment that is occurring globally in the semiconductor area. Rajeev further added that,

“It makes sense for us to push manufacturing in India, where a lot of design work is happening.”

With a lot of USA based companies who are running their lucrative design houses in India, it is logical for that country to invest in production and manufacturing. 

With a 30% growth rate, the electronic production industry of India wishes to be at $410 billion by the end of 2025 which will result in the rise of GDP to 8.2% against 3.2% now. With this reference let us have a look at the list of semiconductor industries in India 2021. 

Top 10 Semiconductor Companies In India 2021

The present world now wishes to widen the global supply chain of chip manufacturing in India 2021. And now the Indian government is encouraging new startups looking at the Indian semiconductor industry growth. The world including India no longer wishes to depend on just a few Japanese, American, and South Korean semiconductor manufacturing. So here is a list of the top 10 semiconductor manufacturing companies in India.

Company
Products
Location
Saankhya Labs
Semiconductor Solutions
Bengaluru
ASM Technologies
Semiconductor Technologies
Bengaluru
Broadcom Inc
Semiconductor and Infrastructure Software Solutions
Bangalore
Chiplogic Technologies
Semiconductor Design Services
Bangalore
CDIL
Semiconductor Manufacturer
New Delhi
MosChip Semiconductor Technologies
Fabless Semiconductors
Hyderabad
Einfochips
Semiconductor Design Services
Ahmedabad
Tata Elxsi
AI, MAchine Learning, NLP
Bengaluru
Semiconductor Laboratory
R&D in Semiconductor Technology
Mohali
NXP Semiconductors
Semiconductor Startup Incubation
Bangalore

Hindustan Semiconductor Manufacturing Company

The Indian Government has canceled the Lol (Letter of Intent) that was granted to HSMC Technologies India to establish India’s first electronic chip manufacturing unit in Gujarat. 

The issued Lol to the consortium that was led by HSMC Technologies India Pvt Ltd has to be abolished as the consortium was unable to submit the required documents according to the Lol even after they were granted extended time.

Conclusion

There is a big Indian semiconductor industry growth that is driving the semiconductor industry. This is because due to the prevailing pandemic the world is shifting towards digital mediums for both their work and entertainment. So the Indian government has identified this growth and there will be more provisions for the semiconductor industry. In the above section find the listed semiconductor manufacturing companies in India.

FAQ On Indian Semiconductor Industry Growth

1. Is the semiconductor industry growing?

With a 30% growth rate, the electronic production industry of India wishes to be at $410 billion by the end of 2025 which will result in the rise of GDP to 8.2% against 3.2% now.

2. Does India make semiconductors?

And now the Indian government is encouraging new startups looking at the Indian semiconductor industry growth. The world including India no longer wishes to depend on just a few Japanese, American, and South Korean semiconductor manufacturing.

3. How many semiconductors does India import?

India imports 100% of its semiconductors but is also known to be a leading global semiconductor chip designer.

4. Who is making semiconductors in India?

Companies that make semiconductors in India are Saankhya Labs, ASM Technologies, Broadcom Inc, Chiplogic Technologies, CDIL, MosChip Semiconductor Technologies, Einfochips, Tata Elxsi, Semiconductor Laboratory, and NXP Semiconductors.

Niccolo Romano

Niccolo Romano is an Italian writer who holds expertise in business, and startup related articles. He has a love for business news and is best in his niche.

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