: MSMEs support Govt plan of setting up semiconductors manufacturing unit #FinanceIndia #StockMarketNEWS MSMEs support Govt plan of setting up semiconductors manufacturing unit New Delhi, 18 Oct (KNN)

@StockMarketNEWS Tue 19 Oct, 2021

Posted in: #FinanceIndia #StockMarketNEWS

MSMEs support Govt plan of setting up semiconductors manufacturing unit #FinanceIndia #StockMarketNEWS
MSMEs support Govt plan of setting up semiconductors manufacturing unit New Delhi, 18 Oct (KNN) Lately the shortage of semiconductors has created widespread impact across various industries, and has drastically interrupted the supply chain affecting sales during the festive season.

According to a media report, Ashiwini Vaishnaw, Minister, Communications and Information Technology has signalled a proposal for the manufacture of semiconductors in India, beginning the first unit work by mid-2022.

He said that, the government is working on the roadmap for a semiconductor ecosystem for designing, manufacturing and packaging of semiconductor chip.

This announcement manifests a sense of hope for the automobile and electronic industries in the face of an ongoing crisis.

In a conversation with KNN, Vinod Sharma, Managing Director, DEKI Electronics said, “It’s a strategic move for India, and Government needs to push this step with full support. This will be a turning point for our country, and by maintaining the alignment between the Government and Industries, India will have its fair share in the market.”

Sharma also stated that setting up of manufacturing units calls for huge investments which is a good prospect on our aim for self-reliance.

Further he added, “The primary reason for semiconductor shortage is due to the demand of new phones, gadgets with no expansion in supply, which is a normal phenomenon as sometimes semiconductors remain underutilized.”

However it’s important to analyse the role of world politics shaping global trade, in view of the technological triggers caused by friction in US-China ties, which has been a key reason for the crunch in supply.