The Government has been targeting global leaders for establishing semiconductor fabrication plants in country. The Ministry of Electronics and Information Technology has drawn up a list of companies who are under its scrutiny.
The names include Taiwan Semiconductor Manufacturing Company, VIA Technologies Incorporation and United Microelectronics Corporation, Intel, Micron Technologies Inc, NXP Semiconductors, Texas Instruments and Fuji Electric. Intel manufacture their own chips. However, this business has been segmented into integrated players namely chip design companies such as Qualcomm as well as pure chip fabrication foundries such as Taiwan Semiconductor Manufacturing Company (TSMC), GlobalFoundries of the US or Semiconductor Manufacturing International Corporation (SMIC) of China.
However, it is no doubt that it was during the pandemic that there was an increasing demand for devices and mobile phones. However, the biggest problem arose when auto firms had initially reduced chip orders during the pandemic and manufacturers had diverted supplies to other buyers. Not only that, there has been a shortage of semiconductor chips which has led to the disruption in automobile manufacturing. As a consequence, automakers have had to shut down plants because of the shortage in production.
However, chip production is concentrated in the Asia Pacific region, namely Taiwan, South Korea, Japan, China and Singapore. Although chip fabrication plants have been running at capacities but many analysts have already predicted that the shortage in chip production could go on for a longer period of time because of the accentuation demand for chip in devices.