Car factories are idle, phone manufacturers are worried and laptop makers are scrambling, unsuccessfully, to meet the orders. The world is facing an unprecedented shortage of semiconductors that power toys, gaming consoles, televisions, cars and more due to a COVID-fuelled demand spike.
Alarm bells are ringing-from from the United States to India—the world’s biggest chipmakers have warned that the shortage will extend into 2022. To ramp up capacity, chip-makers are pumping in record sums for money to meet the surge in demand.
The Indian government, too, is reportedly working on a plan to encourage domestic production of semiconductors. According to a report, the government intends to offer more than $1 billion (about Rs 7,400 crore) in cash to every company that sets up a manufacturing unit in the country. That may sound like huge money to offer to one company but semiconductors don’t come cheap and India, which depends on imports, needs its own capabilities if it wants to be self-reliant.
Demand is booming in India