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Semiconductors-Made in India?
Vivek Jain, SVP of the Technology and Manufacturing Group (TMG), Maxim Integrated
Wednesday, January 27, 2016
From the dawn of the information age until 2003, the world generated an estimated five exabytes of data that's five billion gigabytes. By contrast, since 2013, the world has generated, on average, five Exabyte's of data every single day. Much of this information goes into the cloud, and as more and more sensors embedded into the growing Internet of Things come on line, the amount of data generated will continue to grow exponentially. This data needs to be stored, analyzed, and potentially acted upon all through a sophisticated network of computing devices built on a foundation of semiconductors.

While India has made huge contributions to the world through software, applications and IT support, the nation is missing out on the booming semiconductor industry because for all practical purposes it lacks the capacity to manufacture these vital components. Not because India lacks talent or capital, but rather because it lacks robust and reliable infrastructure including water, power and transportation and because its culture of decision-making is too slow. This industry moves very quickly, and those who hope to compete must move quickly as well.

There is a lot of competition, too. Today, this industry is dominated by players in Taiwan, Japan, Korea, the United States and also China, whose latest Five-Year Plan aims to establish its semiconductor sector as the global leader in the industry. To catch up in this competitive landscape, India needs to strengthen its infrastructure and streamline decision-making at all levels, both in the public and private sectors.

The emerging Made in India movement is a great start. Allowing foreign investment, investing in infrastructure, and the early fab wins already show promise. But India needs to do more, faster. Insatiable demand for computing is driving innovation, which in turn is driving demand for smaller, more powerful chips. Customers want India which is rich in talented engineers and potential to participate but it cannot wait.

From an economic perspective, building a strong semiconductor manufacturing industry translates into more high-paying jobs, no matter where they are made. In the United States, for example, the average salary of someone in the semiconductor industry is 2.5 times higher than the average salary nationwide. A strong semiconductor industry also promises big economic gains. The worldwide semiconductor industry was $336B in 2014 and shows no signs of slowing down over the long term. Now is the time for India to seize this opportunity. If it does, it will benefit and so will the world.
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