India versus China in Global Semiconductor supremacy
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Dec 21, 2015 05:58PM
Last Updated: September, 2015 SECTORAL REPORT | November, 2009 Introduction The Indian semiconductor industry offers high growth potential areas as the industries which source semiconductors as inputs are themselves witnessing high demand. The end-use industries such as mobile devices, telecommunication equipment, information technology, office automation (IT & OA), industrial machinery, automobiles and several other industries have applications for computing in some form or other and thereby necessarily have growing demand for semiconductors. Now with the concept of Internet of Things (IoT) picking up momentum, the next generation of interconnected devices would further increase the demand for intelligent computing, thereby creating sustainable demand for semiconductors. India has a very fast growing electronics system design manufacturing (ESDM) industry. India also has a strong design base with more than 120 units. According to the Department of Electronics and Information Technology (DeitY), nearly 2,000 chips are being designed every year in India and more than 20,000 engineers are working on various aspects of chip design and verification. The government has a strong focus in developing the ESDM ecosystem in India. Several subsidies and other incentives are on offer for setting up electronics manufacturing units in India. - See more at: http://www.ibef.org/industry/semiconductors.aspx#sthash.CdsUgRqS.dpuf
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China has been solidifying its semiconductor industry policy objectives through the release of the "National IC Industry Development Guidelines" in June 2014 and "Made in China 2025" in June 2015, with one key financial support program being the National IC Industry Investment Fund (Big Fund), which will be used to help finance production capacity in advanced process technologies, while also giving China IC vendors the opportunity to acquire global vendors. This report analyzes how the Big Fund can affect the China and global semiconductor industry moving forward.