Semiconductors: the new 'weapons' of geopolitics
All you need to know about Semiconductors for UPSC. RT this tweet and Save it to your notes๐งต (1/8)
All you need to know about Semiconductors for UPSC. RT this tweet and Save it to your notes๐งต (1/8)
What is a Semiconductor? ๐
- Thumbnail sized 'building blocks' of almost every modern electronic device
- Give computational power to devices (2/8)
- Thumbnail sized 'building blocks' of almost every modern electronic device
- Give computational power to devices (2/8)
Working of a Semiconductor:
- Basic component: sliver (not silver) of silicon
- sliver etched with billions of microscopic transistors in a pattern to control current flow determined by computational instructions (3/8)
- Basic component: sliver (not silver) of silicon
- sliver etched with billions of microscopic transistors in a pattern to control current flow determined by computational instructions (3/8)
Steps in Supply Chain: ๐ฉ๐ปโ๐ป
- developing software for chips
- patenting 'em via core IPR
- making chip fabrication machines
- setting up factories (aka fabs)
- ATMP (Assembly, Testing, Marking and Packaging) (4/8)
- developing software for chips
- patenting 'em via core IPR
- making chip fabrication machines
- setting up factories (aka fabs)
- ATMP (Assembly, Testing, Marking and Packaging) (4/8)
Global Concentration: ๐
- Taiwan, S. Korea, and USA are biggest players
- 90% of 5nm chips by Taiwan Semiconductors Manufacturing Company (TSMC)
- Industry Valuation: $500-$600bn globally (5/8)
- Taiwan, S. Korea, and USA are biggest players
- 90% of 5nm chips by Taiwan Semiconductors Manufacturing Company (TSMC)
- Industry Valuation: $500-$600bn globally (5/8)
Amidst Chinese position on Taiwan, major economies are forced to enter chip-making sector. What are major efforts? ๐ต ๐ถ
- USA: $52.7bn government funds for chips + Science Act
- EY: โฌ43bn for public and private investments
- India: $10bn PLI + fiscal support to Designed LI 6/
- USA: $52.7bn government funds for chips + Science Act
- EY: โฌ43bn for public and private investments
- India: $10bn PLI + fiscal support to Designed LI 6/
Indian Scene: ๐ฎ๐ณ
- By 2026, Indian demand expected: $70-$80 bn
- PLI now gives 50% fiscal support for all chips w/ special push to 45nm chips (less time consuming and economical in production)
- 2 plants in GJ (Vedanta and Foxconn)
- One each in TN and KA planned (7/8)
- By 2026, Indian demand expected: $70-$80 bn
- PLI now gives 50% fiscal support for all chips w/ special push to 45nm chips (less time consuming and economical in production)
- 2 plants in GJ (Vedanta and Foxconn)
- One each in TN and KA planned (7/8)
Challenges: ๐คผโโ๏ธ
- Limited capital: $3-$7bn needed for 1 fab, total PLI is only $10bn
- Low funds for RnD
- Initial cost upfront on taxpayer
- 2-4 mn gallons (75-150 lac litre) of ultrapure water needed per day per fab (on avg) (8/8)
- Limited capital: $3-$7bn needed for 1 fab, total PLI is only $10bn
- Low funds for RnD
- Initial cost upfront on taxpayer
- 2-4 mn gallons (75-150 lac litre) of ultrapure water needed per day per fab (on avg) (8/8)
You can also read these notes in one place on my blog: csewhy.substack.com
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