Semiconductors: The ‘New Oil’ Powering the 21st Century
Summary
Semiconductors are critical to modern technology, driving everything from mobile phones to medical devices, cars, and military systems. Made primarily from silicon, germanium, and gallium arsenide, these microchips control the flow of electricity, enabling devices to function. While the U.S. pioneered semiconductor development, Asia, particularly Taiwan, dominates the global market. India is increasingly becoming a key player, with its semiconductor market expected to surge in the coming years. Tata Group’s upcoming semiconductor plant in Assam signals India’s growing presence in this essential industry.
Semiconductors, often referred to as the ‘new oil’ of the 21st century, are the backbone of modern technology. From mobile phones and computers to medical devices, cars, and even defense systems, virtually every electronic device relies on these tiny yet powerful microchips. So, what exactly are semiconductors, and why are they considered so vital in today’s world?
What Are Semiconductors?
Semiconductors serve as the “brain” of modern electronics. These microchips and integrated circuits (ICs) are made from pure silicon or compounds like germanium or gallium arsenide, with small amounts of impurities added to enhance their conductivity. Rare gases such as neon are also used in the manufacturing process, with much of them imported from Ukraine and Russia.
How Do Semiconductors Work?
The primary function of semiconductors is to control the flow of electricity. Made from materials like germanium and gallium arsenide, semiconductors either allow or block the passage of electric current. This simple yet crucial property helps devices turn on or off, depending on the needs of the process or device.
Global Semiconductor Market
The United States was the pioneer in semiconductor development and remains a leader in microchip innovation. However, its market share has decreased from 37% in 1990 to 12% due to limited investments. Today, much of the global semiconductor manufacturing takes place in Asia, with China, Taiwan, South Korea, and Japan playing key roles. Taiwan holds a dominant position, with companies like TSMC, which manufactures chips for global tech giants like Intel, Apple, and Qualcomm, commanding 50% of the market share. This geopolitical importance is often referred to as Taiwan’s “Silicon Shield.”
India’s Growing Semiconductor Industry
India is making significant strides in the semiconductor race, with the country’s semiconductor market expected to grow from $35 billion to $63 billion by 2026, and possibly exceed $100 billion by 2032. As the global microchip market is forecasted to reach $2.06 trillion by 2032, India is positioning itself as a competitive player in this booming industry. The Tata Group has already begun constructing a semiconductor plant in Assam, with operations expected by the end of 2025.
As demand for microchips continues to rise globally, semiconductors will play an increasingly pivotal role in shaping industries and national economies worldwide.
Disclaimer
The information provided is based on publicly available data and market trends. The predictions regarding India’s semiconductor market growth are estimates and may vary depending on various factors influencing the global economy and technological advancements.
source : india.com