Semiconductors are widely used in electronic circuits. As the name suggests, a semiconductor is a material that conducts current, but only partly. The conductivity of a semiconductor is somewhere between that of an insulator, which has almost no conductivity, and a conductor, which has almost full conductivity. Semiconductors are so vital these days for almost every industry, including the end-use industries such as Telecommunications, Information Technology (IT), Office Automation (OA), Industrial Machinery and Automation, Health and Medical, Automobile, Engineering, Power and Solar Photovoltaic, Defense and Aerospace, Consumer Electronics, and Appliances. While the history of semiconductor dates back to the 19th century, it was in in the 1960’s when the fabrication of semiconductor became a feasible business.
On the Brighter Side
The Indian semiconductor industry is reportedly expected to grow at a CAGR of 26.7% by 2020 which justifies the big opportunities that lie ahead for the industry to grow. The semiconductor industry has a lot of potentials to grow as there are high demands for semiconductors by the end-user industries and now with the concept of the Internet of Things (IoT) trending, the next generation of interconnected devices would further increase the demand for smart devices, thereby creating more advantages for the industry ahead.
The semiconductor industry has equal challenges as well. There are factors like threats of a new entrant. Setting up new company pain as it takes a hefty investment but recently, the existing companies are forming an alliance to save manufacturing costs and if there’s no barrier for new entries in the market, competitive rivalry comes next to tackle. As most of the industry’s key segments are dominated by a small number of large players, it leaves the buyer very little bargaining power.
The semiconductor company has yet to achieve a greater milestone in the road ahead. With the implementation of fabrication capabilities in India, the country could achieve a degree of self-sufficiency in electronics. There are many initiatives like ‘Digital India’, ‘Make in India’ being undertaken by the government to further encourage the fabrication of semiconductors. The establishment of these new startups and companies are going to prove advantageous as the semiconductor industry is anticipated to work hand-in-hand with the EDSM and the growth of one sector is going to benefit the other.
There are high chances that the semiconductor industry would keep up with the IoT and other trends and enhance the sector by inventing semiconductor devices that are apt for the technology as wells as the skills and capabilities of the end-users.