Science
Semiconductors
are materials which have a conductivity between conductors and insulators. They
can be pure elements, silicon or germanium or compounds; gallium, arsenide or
cadmium selenide.
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They are also referred to as integrated circuits or more
commonly just chips, they will be the tiniest yet most exacting product ever
factory-made on a world scale.
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It’s an electrical circuit with many elements like
transistors and wiring formed on a semiconductor wafer.
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An electronic device comprising varied of
those elements is called integrated circuit (IC).
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They are used to power
a wide range of devices – cars, laptops, smartphones, household appliances and
gaming consoles.
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Although they are tiny,
they perform a host of functions such as powering displays and transferring
data.
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Semiconductor
manufacturing is led by Taiwan Semiconductor Manufacturing Company (TSMC) in
Taiwan and Samsung Electronics in South Korea. Recently, American chipmaker
Intel has also planned to build two new chip factories in Chandler, Arizona.
Basic Requirements for manufacturing semiconductor chips Fabricating
semiconductor chips is a task of precision.
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It needs more than 3 months and involves big factories,
dust-free rooms, multi-million-dollar machines, for manufacturing.
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Raw materials99% pure
Neon Gas is used in a process called photolithography, which is the most common
method for fabricatig integrated circuits.
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Palladium is used to coat electrodes that facilitate
management flow of electricity and inplating of microprocessors and printed
circuit boards.
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Molten tin and lasers
Huge working capital- Plants cost billions of dollars to build and equip, and
they have to run flat-out to recoup the investment.
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Huge infrastructure with the uninterrupted and stable power
provide.
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A clean environment,
ie, low air particulate matter, abundant supply of clean.
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fresh water etc Quick
access to an international airport or seaport.
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Close proximity is to well-trained technical human capital.
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Causes of shortage The tech war between the
U.S. and China and the sanctions
exacerbated the shortage of advanced chips in China and resultant stockpiling.
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Pandemic and lockdowns
across the worldforced shut chip-making facilities in countries including
Japan, South Korea ,China and the US. increased the growth in sales of laptops,
tablets and mobile phones to the highest in a decade, as everything from school
to office became online due to lock down and shift to work from home.
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Disasters-Production plants in the United States were
suffering from the cold and in Japan by wildfire.
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Expensive and long method of manufacturing-Fabricating
advanced logic chips requires extraordinary precision, along with huge long-run
bets in a very field subject to rapid change.
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False Forecasts by the
automakers by underestimating the rebound in the automobile manufacturing, unlike the small and tiny
chips utilized in smartphones or laptops.
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Cascading effect-Its
shortage causes cascading effects, given that the first one creates pent-up
demand that becomes the cause for the follow-up famine.
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Ukraine war-Russia
supplies over 40% of the world’s supply of palladium and Ukraine produces 70%
of the global supply of neon.
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Impact Supply chain
disruption as being the building block of various commodities and followed cost
push inflation Chip shortages are expected to wipe out USD 210 billion of sales
for the carmakers this year, with
production of 7.7 million vehicles lost.
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Directly affect shopper demand and related giant scale
unemployment.
India’s Semiconductor
Demand and Related Initiatives India currently imports all chips and the market
is estimated to touch $100 billion by 2025 from $24 billion now.

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