Sanjay Gupta: ‘Organic demand in India for semiconductors … domestic manufacturing a necessity’ | Business News,The Indian Express
Emphasising on the need for India to build semiconductor manufacturing capacity to cater to its organic demand, Sanjay Gupta, Vice President & India Managing Director at Netherlands-headquartered NXP Semiconductors, said that the country could face competition from regions such as the US and Europe as they deleverage dependence on Taiwan — the world’s largest semiconductor […]
Monday, Sep 19, 2022
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HomeBusinessSanjay Gupta: ‘Organic demand in India for semiconductors ... domestic manufacturing a necessity’
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Sanjay Gupta: ‘Organic demand in India for semiconductors … domestic manufacturing a necessity’
Emphasising on the need for India to build semiconductor manufacturing capacity to cater to its organic demand, Sanjay Gupta, Vice President & India Managing Director at Netherlands-headquartered NXP Semiconductors, said that the country could face competition from regions such as the US and Europe as they deleverage dependence on Taiwan — the world’s largest semiconductor […]
Written by Soumyarendra Barik
, Pranav Mukul
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Updated: September 19, 2022 6:56:37 am
A worker inspects semiconductor chips at the chip packaging firm Unisem (M) Berhad plant in Ipoh, Malaysia October 15, 2021. REUTERSEmphasising on the need for India to build semiconductor manufacturing capacity to cater to its organic demand, Sanjay Gupta, Vice President & India Managing Director at Netherlands-headquartered NXP Semiconductors, said that the country could face competition from regions such as the US and Europe as they deleverage dependence on Taiwan — the world’s largest semiconductor manufacturing country.
In an interview with Soumyarendra Barik and Pranav Mukul, Gupta — who heads the India operations of the three largest manufacturers of automotive semiconductors — also talked about the ongoing chip shortage and India’s production-linked incentive (PLI) scheme. Edited excerpts:
The supply chain issue is ongoing for almost two years now. If we recap the reasons of why it happened — there is a limited number of companies around the world. Taiwan hosts some of these companies, and there is an uneven dependence on Taiwan for semiconductors.
In the first phase of the pandemic, many of these sectors didn’t know how things would pan out. They thought demand is going to come down. Just like we reserve railway tickets in advance and there is wait list, one has to book slots to have chips manufactured in advance. If you don’t, you lose your slot.
A lot of automotive companies cancelled their slots with the assumption that they will not be requiring it. This was because having the slots would mean you pay for some of the expenses. Running a fab (fabrication unit) takes millions of dollars a day. Automotive companies thought that supply will not be required in the first couple of quarters of 2020, and they released those slots. But there was another phenomenon that was happening — work from home, study from home, gym from home, basically everything from home. Nobody had predicted this phenomenon.
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