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India’s resilience to semiconductor supply chain - Learnings from Semicon India 2022
India’s resilience to semiconductor supply chain - Learnings from Semicon India 2022

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Following are some of the insights from the session by Dr. Siva Sivaram, President - Western Digital in SemiconIndia 2022

The semiconductor industry has witnessed massive transformation in the last few decades. In the 70s, US led the industry, in the 80s Japan dominated, in the 90s Korea took over, in the late 90s and early 2000s, Taiwan conquered and expanded, in the last 5-7 years, China has been investing a lot into the ecosystem.

How does India build resilience in the midst of the semiconductor crisis that the world is facing?

The main objectives to build semiconductor resilience includes –

  • Ensuring the nation’s national security including power grid, communication network etc.
  • Ensuring critical industries to grow and expand – E.g automotive, telecom, power etc.
  • Encourage and create an ideal ecosystem for creation of transformative technologies – E.g. Quantum, AI/ML etc.
  • Create value adding manufacturing infrastructure and jobs

India has been at the centre-stage of the digital revolution, generating a wealth of data, leading to massive increase in demand of cloud and other data storage systems like hard drive etc. In India, only 7% of the data produced is stored and India produces almost 118 zettabytes of data (1 zettabyte = 1021 bytes).

Today the semiconductor industry is USD 470 bn in revenues and memory is the biggest component of it, forming upto 1/3rd of the overall market. This is followed by microprocessors, and other applications like RF, wireless, power management etc.

Semiconductor fabs consist of equipments such as Lithography, photoresist processing, Ion implant and doping, thermal processing, Deposition, material removal and cleaning, automation and control, process control, etc. Hence, the equipment industry is a critical part of the overall semiconductor supply chain.

The semiconductor supply chain is as follows –

Semicon 4

 

  • Pre-silicon – CAD software, IP blocks, simulation, emulation environments etc. This portion of the supply chain is India’s strength
  • Silicon Processing: Fabs, Capital equipment, materials
    • Strong business model
    • Inflow of R&D
    • Infrastructure intensive – power, water, natural gas, waste recycling
    • Advanced personnel to maintain and sustain
  • Post silicon – Packaging, assembly, test, system integration, application support

 

Strategies for resilience

  • No one country is present across all the stages across the semiconductor value chain. Therefore, India needs to develop alliances with countries to maintain security across the value chain.
  • We need to be aware of the needs of our country – which industry is critical and how can we support them domestically, know our strengths and play according to them and establish roots of trust in the supply chain.
  • We need to look forward and anticipate future demand and accordingly create a future plan of action
  • Ensuring leadership in applications and markets ensures continuity in the industry.

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Vandhna Babu
Principal Analyst - Research

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