In this debate, we take a look at whether India can become a Semiconductor Superpower in near future or not?
00:00 Intro
02:30 Taiwan's Dominance
03:25 China's Position
05:09 Opportunity for India?
08:07 India's Current Position
13:33 India's Plan for the Future
17:00 Conclusion
The debate centers on India's potential to become a global semiconductor superpower in response to the threat China poses to the semiconductor industry's future, primarily in Taiwan. China claims Taiwan as its own, creating a constant risk to the semiconductor production hub that manufactures over 60% of the world's semiconductors. This dispute has resulted in military tensions between China and the US, who aims to protect Taiwan to secure its semiconductor supply. The discussion raises the idea of diversifying semiconductor sources, with India emerging as a potential alternative, reducing dependence on Taiwan and potentially averting international conflicts over semiconductor production.
Current Geopolitics:
China currently holds significant control over the global semiconductor supply chain. They dominate the production of germanium, gallium, and electronic devices in which semiconductors are used, with 36% of all electronics coming from China. Despite geopolitical tensions with the US and other countries, China produces a substantial portion of critical rare earth metals for semiconductor manufacturing, such as 60% of germanium and 90% of gallium.
These metals are vital because they are essential components in semiconductor production. China's control over these rare earth metals allows them to influence the global semiconductor supply chain by limiting exports. Furthermore, China is a major electronics manufacturing hub, responsible for 36% of the world's electronic products. Once semiconductor chips are manufactured, they are often sent to China for assembly into the electronic devices used daily.
However, the world is seeking alternatives to China due to its unpredictability and excessive power. Diversifying the supply chain is crucial to avoid disruptions. India is seen as a potential replacement for China, but it faces significant challenges. India lacks semiconductor fabs, relies on semiconductor imports, and has limited experience in chip manufacturing. Other countries like Malaysia, Thailand, Singapore, and Vietnam offer cost-effective alternatives with existing semiconductor expertise.
While there is an opportunity for India, it is not currently positioned to seize it. The world is exploring the "China+1" strategy, but India's readiness to take China's place remains uncertain.
Indian Opportunity:
India's immense size positions it as a potential alternative to China in manufacturing. Its vast market eliminates the need for heavy reliance on exports, offering cost advantages. The US and Japan have pledged support for India in semiconductor production, despite its current lack of manufacturing facilities. China leads in semiconductors, with its SMIC holding a significant market share. However, China's growth is constrained by the unavailability of essential lithography machines from ASML, due to US-imposed restrictions. With the US's willingness to assist India, the nation could quickly catch up and become a significant player in the semiconductor industry, eroding China's edge.
Connect with us:
Twitter: https://twitter.com/bwmillionaires/
LinkedIn: https://www.linkedin.com/company/backstagewithmillionaires
Instagram: https://www.instagram.com/backstagewithmillionaires/
Podcast: https://open.spotify.com/show/5rGPalovc6AKsfbOyjh32p
#semiconductor #startup #entrepreneurship