Que. Evaluate the role of semiconductor supply chains in the current global geo-economic and geopolitical scenario. How can India’s efforts to develop its semiconductor industry help reduce dependency on existing global players?
वर्तमान वैश्विक भू-आर्थिक और भू-राजनीतिक परिदृश्य में सेमीकंडक्टर आपूर्ति श्रृंखलाओं की भूमिका का मूल्यांकन करें। भारत के सेमीकंडक्टर उद्योग को विकसित करने के प्रयास कैसे मौजूदा वैश्विक खिलाड़ियों पर निर्भरता को कम कर सकते हैं?
Structure(i) Introduction: Highlight the importance of semiconductor supply chains in the global geoeconomic and geopolitical landscape, focusing on their role in technology, trade, and power dynamics. (ii) Main Body: Evaluate the global semiconductor shortage, its impact on economies, and strategic tensions between major powers such as the US and China. Also, discuss how India’s efforts (e.g., Semiconductor Mission) can promote self-reliance and reduce dependence on major global players. (iii) Conclusion: Emphasize India’s potential to become a major player in global semiconductor supply chains while supporting economic growth and technological security. |
Introduction
The semiconductor industry has become a crucial pillar of the global economy and technological advancement. Semiconductor chips are integral to every modern device, whether smartphones, laptops, or automotive and defense equipment. Recently, disruptions in global semiconductor supply chains have led many countries to reassess their dependence on these critical components for economic and security needs. In the current geo-economic and geopolitical scenario, semiconductor supply chains hold not only commercial competitiveness but also strategic significance.
Role of Semiconductor Supply Chains in the Global Geo-Economic and Geopolitical Scenario
(i) Economic Power and Trade Dominance: The semiconductor industry is concentrated in a few countries, notably Taiwan, South Korea, and the United States. Their dominance in this sector provides them with substantial economic and strategic power.
(ii) Geopolitical Tensions and Technological Dominance: The ongoing technological rivalry between the U.S. and China has turned the semiconductor industry into a strategic weapon. The U.S. has imposed restrictions on China’s semiconductor supplies to slow its technological advancement, while China is striving for self-reliance to reduce dependency.
(iii) Security and Self-Reliance: From a national security perspective, heavy reliance on foreign semiconductor supplies can create vulnerabilities. Especially in defense and sensitive technology sectors, there is an increasing need for domestic chip production.
(iv) Global Supply Chain Disruptions: Events like the COVID-19 pandemic and the Russia-Ukraine war have disrupted global supply chains, leading to semiconductor shortages. This has underscored the need for self-reliance and diversification.
India’s Efforts and Prospects
(i) Semiconductor Mission: The Indian government has proposed a $10 billion investment under the ‘Semiconductor Mission’ to promote domestic semiconductor production. This initiative aims to enhance India’s capabilities in chip manufacturing, design, and testing.
(ii) Reducing Global Dependence: By increasing its semiconductor production capacity, India can decrease its reliance on global players like Taiwan, South Korea, and China. This move will not only safeguard domestic industries but also position India as a significant player in the global semiconductor supply chain.
(iii) Self-Reliant India and Make in India: Enhancing semiconductor production aligns with campaigns like ‘Self-Reliant India’ and ‘Make in India’. This will boost domestic sectors such as electronics, automotive, and defense, making India a reliable part of global supply chains.
(iv) Talent and Innovation: Promoting technical research and development in institutions like IITs and IISc can bolster India’s semiconductor design and research capabilities. This will foster innovation and position India as a global semiconductor design hub.
(v) Global Collaboration: India is forming strategic partnerships with countries like Taiwan and Japan to advance its semiconductor production capabilities. These collaborations can provide advanced technology and expertise, accelerating India’s growth in this sector.
(vi) Local Employment and Economic Growth: Developing the semiconductor industry in India can generate millions of new jobs and strengthen the technological ecosystem. This will further support India’s digital economy.
Challenges and Solutions
(i) Technical and Infrastructure Gaps: India faces infrastructure challenges, such as advanced manufacturing facilities and high-end machinery. To address this, the government needs to enhance collaboration with foreign companies and experts.
(ii) Competitive Global Market: The semiconductor industry is dominated by countries like Taiwan and South Korea. India must improve cost efficiency and productivity to compete and align government policies with industry needs.
(iii) Skilled Workforce: Semiconductor production requires high technical expertise. Promoting technical education and training programs is essential to develop a skilled workforce in this field.
Conclusion
India’s efforts to develop its semiconductor industry can significantly reduce reliance on existing global players and enhance India’s position as a major technological and economic power. The semiconductor sector is crucial for national security and economic stability and will define India’s role in the global technology supply chain. Through self-reliance and global collaboration, India can establish a robust and sustainable presence in the global semiconductor industry.
