The whole world is struggling with the shortage of semiconductors i.e. chips. This is having a direct impact on the auto and gadgets industry in India. As a result, the production of auto companies has come down. But now this problem is going to go away soon. To overcome the chip shortage, an agreement is going on between India and Taiwan, under which the chip will be produced in India itself. This will also cut down on the tariff on the component.
Let us tell you that 80% of the chips are made in Taiwan and South Korea. In such a situation, if this conversation is successful then it will have a positive effect in India. However, experts say that this deal will harm China and a new dispute may arise.
The plant will be ready for Rs 55.23 thousand crore
Officials in India and Taipei have been negotiating a deal for a chip-making plant for weeks. It is being told that a chip plant of $ 7.5 billion (about Rs 55.23 thousand crores) will be built in India, it will include components ranging from 5G devices to electric cars.
This deal is happening at a time when democratic countries around the world are increasing economic and military ties to stand against China. While on the one hand, this deal with Taiwan will be profitable, on the other hand, there is a fear of increasing tension with China. Let us tell you that China considers Taiwan as a part of its own country. On the other hand, Taiwan considers itself an independent country.
The deal got a boost due to the meeting of the Quad group
This conversation has progressed more rapidly in the past few weeks. US President Joe Biden raised this issue in a quad meet to increase the supply chain of the chip. The Quod Group was created to deal with the influence of China. In this meeting, India, Australia, and Japan have also discussed the issue of the chip problem.
India imports chips worth Rs 1.77 lakh crore
Recently, the launch of the Jio Phone has been delayed due to the lack of chips in India. Which is being made in partnership with Google. Currently, India imports semiconductors worth $ 24 billion (about Rs 1.77 lakh crore), which is expected to reach about $ 100 billion (about Rs 7.38 lakh crore) by the year 2025.
What are semiconductor chips?
Today every single person is using tens of gadgets in a day. Whether it is a computer, laptop, smart car, washing machine, ATM, hospital machine, or even a smartphone in hand. It is incomplete without semiconductors. These chips or semiconductors are small brains, which operate the gadgets.
Semiconductor chips are made of silicon. They are good conductors of electricity. These are fitted into microcircuits, without which electronic goods and gadgets cannot function. All active components, integrated circuits, microchips, transistors, and electronic sensors are made of these chips.
These semiconductors help in high-end computing, operation control, data processing, storage, input and output management, sensing, wireless connectivity, and many more. As such, these chips have become an integral part of artificial intelligence, quantum computing, advanced wireless networks, blockchain applications, 5G, IoT, drones, robotics, gaming, and wearables.
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