by admin | Mar 25, 2025 | business, semiconductor companies, semiconductors, technology, technology industry
New Delhi [India], March 25 (ANI): The semiconductor sector in India is expanding; however, it encounters substantial obstacles including an immature infrastructure.
supply chain
According to a report by Jefferies, factors such as a scarcity of skilled manufacturing professionals, intense international rivalry, and swiftly advancing technologies are key issues.
The report highlighted that while India has several key advantages, including a strong engineering talent pool and government support, it must overcome hurdles to establish a competitive semiconductor ecosystem.
It stated, “The sector must also chart a course through the difficulties posed by underdeveloped”
supply chain
, scarce specialized manufacturing expertise, intense international rivalry, and swiftly advancing technology.”
A major hurdle lies in the restricted supply of crucial raw materials such as silicon wafers, high-purity gases, specialized chemicals, and ultrapure water—essentials needed for semiconductor production.
Although India boasts a robust chemical and gas production industry, notably in areas such as Dahej in Gujarat, businesses must improve their capacity to manufacture high-purity materials for semiconductors. The government has made the advancement of the entire semiconductor ecosystem a priority.
supply chain
including chemicals, gases, and machinery, to decrease reliance on imported products.
India accounts for approximately 20 percent of the worldwide semiconductor design workforce, showcasing its prowess in chip development. Nonetheless, there is a shortage of expertise in areas such as semiconductor manufacturing and validation.
To tackle this issue, the report indicated that businesses are focusing on enhancing skills, while the government is partnering with industries and academic institutions to develop specialized courses for semiconductor fabrication, assembly, and testing.
The report further highlighted that India encounters strong rivalry from prominent semiconductor centers like China, Singapore, Malaysia, South Korea, and Taiwan, regions that have invested years in developing their respective infrastructures.
As semiconductors gain greater strategic significance and the emphasis on them continues to grow,
supply chain
To boost security, numerous nations are providing subsidies and incentives to lure semiconductor producers.
To lure investments, India has introduced significant incentives, aiding in the launch of several semiconductor manufacturing initiatives.
Setting up sophisticated manufacturing plants, however, involves several risks such as initial production difficulties, problems with maintaining quality standards, and the challenge of reaching large-scale efficiency. The prosperity of India’s semiconductor sector hinges on establishing consistent demand for semiconductors within the country and abroad.
A key difficulty lies in staying abreast of swift technological progressions. Even as India is currently establishing its inaugural fabrication plant, international semiconductor firms are consistently advancing the frontiers of shrinking transistor sizes. Consequently, as a belated participant, India might need to commit substantial financial resources to keep pace competitively.
Even with these hurdles, India’s semiconductor sector holds significant growth potential through robust governmental backing, partnerships within the industry, and financial commitments to R&D. Creating a comprehensive semiconductor framework will be essential for India to emerge as a key competitor in the international chip market. (ANI)
Provided by Syndigate Media Inc. (
Syndigate.info
).
by admin | Mar 25, 2025 | automotive industry, autos, semiconductor companies, semiconductors, technology
With automobiles increasingly resembling rolling computer systems, car manufacturers are competing to create their own semiconductors—which are essential components for elements ranging from electric drivetrains to advanced driver-assistance technologies. The disruptions caused by the COVID-19 pandemic highlighted the vulnerabilities associated with depending solely on outside semiconductor providers. Moreover, as the automotive sector transitions towards electrification and autonomy, this surge in demand emphasizes the necessity for sophisticated, high-performing microchips even further.
In an effort to decrease reliance on external chip producers, businesses are establishing their own internal semiconductor design groups, opening R&D facilities in Silicon Valley, and entering into agreements with manufacturing firms for outsourced production. Additionally, some enterprises are forging joint ventures; for instance, they might team up with Taiwan-based Foxconn to jointly develop automotive-specific microchips.
Electric vehicle (EV) manufacturers such as Tesla and China’s BYD have traditionally focused on developing their own chips, but now conventional carmakers—like Toyota, Hyundai Motor Group, Stellantis, and General Motors (GM)—are also entering this competition.
Automotive semiconductors were previously seen as a specialized sector, yet their importance has expanded with the increasing technological sophistication of vehicles. In contrast to sophisticated processors utilized in smartphones and data centers, automotive chips tend to be simpler, which makes them more amenable to internal production by automobile manufacturers.
Nevertheless, the supply continues to be restricted. In the past, chip producers have primarily focused on catering to the consumer electronics sector, which has left automotive manufacturers vying for a scarce allocation of chips. This disparity grew particularly evident during the pandemic as worldwide shortages compelled numerous auto companies to suspend their manufacturing operations.
South Korea’s Electronics and Telecommunications Research Institute (ETRI) reports that traditional Internal Combustion Engine (ICE) vehicles typically incorporate approximately 200 semiconductor components each, whereas Electric Vehicles (EVs) necessitate about 1,000 such devices, with Autonomous Vehicles requiring over 2,000. Notably, power semiconductors—critical for determining an EV’s operational range—are considered particularly significant in this domain.
According to market research company Verified Market Research, the worldwide automotive semiconductor market is expected to expand at an annual compounded growth rate of 5.83%. This would bring the total value up to $82.8 billion by 2031, starting from $54.8 billion in 2024.
The Hyundai Motor Group, having traditionally relied heavily on Germany’s Infineon Technologies for its chips, is now becoming more involved in semiconductor production. In 2020, the group’s car components division, Hyundai Mobis, purchased Hyundai Autron—a firm formerly dedicated to semiconductors for internal combustion engines. Following this acquisition, Hyundai Autron has redirected its efforts towards developing electric vehicle (EV) chips. Moreover, Hyundai Mobis intends to start producing essential automotive semiconductors through contract manufacturing later this year.
In 2023, Hyundai reinforced its relationship with Infineon by forming a collaboration aimed at jointly developing power semiconductors specifically for electric and hybrid cars.
Toyota has chosen an alternative path by establishing a joint venture with its component supplier Denso to advance automotive semiconductor development. In contrast, Volkswagen is pouring investments into chip technology via its software division, Cariad, with the objective of designing bespoke semiconductors specifically for their cars.
GM is intensifying its chip strategy as well. The company has joined forces with Dutch semiconductor manufacturer NXP Semiconductors to collaboratively develop chips for their upcoming generation of electric vehicles.
From the outset, Tesla has been designing its own chips and relying on external contractors for manufacturing. On the other hand, China-based BYD both designs and manufactures its own car-specific semiconductors. In 2023, BYD declared an investment of 100 billion yuan ($13.8 billion) aimed at advancing its capabilities in semiconductor technology as well as autonomous driving systems, thereby intensifying its efforts in this area.
In addition to creating new chip designs, automobile manufacturers are also focusing on simplifying the semiconductor supply chain. They are integrating various functionalities into fewer chips to decrease complexity and make purchasing processes more efficient.
For example, Stellantis is collaborating with Foxconn to jointly develop semiconductors that might substitute up to 80% of the current chip usage in Stellantis cars. The objective behind this initiative is to reduce expenses, streamline manufacturing processes, and secure a more consistent supply chain.
The pandemic highlighted weaknesses in the automotive chip supply chain,” stated Lee Hang-gu, a researcher at the Korea Automotive Technology Institute. “Meanwhile, China’s drive towards independent semiconductor development is also spurring global automakers to enhance their own chip technologies.
