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maldeh | 4 years ago

India's first forays into semiconductor fabrication in the 80s and 90s were likewise enthusiastically supported by the government (land, incentives, tax breaks and so on), but were ultimately hamstrung by more fundamental infrastructure issues that couldn't just be magicked away - water shortages and unstable power grids - each of which could grind manufacturing to a halt for months on end and delayed production cycles. (I think there was also a major fire in a leading SC plant that caused delays by years.) If anything these shortcomings could be exacerbated in 2021-22. The government would need a much more comprehensive infrastructural solution this time around.

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beloch|4 years ago

Even so, it's not hard to see why India remains alluring for tech companies. Wages are low and there's a massive number of young workers with more on the way. In these respects, India is, now, what China was a few decades ago. Plus, it's right next door to existing supply chains and less encumbered by international politics.

If the problems can be solved, the returns will be great.

brigandish|4 years ago

The last time that China's government was instituting economic policies that threatened the trade of the world's premier power (by hoarding silver and holding a monopoly in tea) it was solved by the British government and its agents diversifying tea supply via India and being far more militarily aggressive, which does seem to be mirrored somewhat by recent events.

If Facebook et al are truly addictive then I could make the stretch to that and the exportation of opium over foreign borders, but that's more of a worldwide blight.

thrashh|4 years ago

The clincher is whether it can be solved.

Infrastructure is so crucial to every society, every process, and every organization and yet it is also so often not given the attention that it needs. .

balefrost|4 years ago

Plus, it's right next door to existing supply chains

Not as the boat flies. To be fair, I know nothing about shipping logistics... but it seems like quite a detour to me.

baybal2|4 years ago

> Wages are low and there's a massive number of young workers with more on the way.

Please, check again. Indian engineers are by no means cheap.

They had decades long experience working with the West. They know American wage levels well, and bargain to the end.

beckman466|4 years ago

> [China is] less encumbered by international politics

in what way(s)?

downrightmike|4 years ago

Agreed. They were absolutely hamstrung because their facilities burned down and were only restored to s shadow of their former selves. They are still generations behind everyone else, and not able to use their anywhere near their full capacity. Plus their competitors took the opportunity to hire the best people that India away from the state fabs. Shame really, if they could increase their output, this shortage would be the time to regain some footing.

kamaal|4 years ago

>>water shortages and unstable power grids

In Bangalore the tech parks most of the time run on diesel generators. And the water is kind of de-facto supplied through tankers. There is a fair bit of rain water harvesting but they are not putting in enough to use that through borewells.

My guess is something similar will be worked out this time as well.

South Bangalore/Hosur seems like a nice place for something like this.

fakedang|4 years ago

As much as I would love to agree (since I have a home in Bangalore on the route to Hosur), it's not really possible. Bangalore suffers from severe water shortages largely exacerbated by developers building over former water harvesting reservoirs. You'll need way too much power and water, that it would just be cheaper to shift manufacturing elsewhere (to, say, Pune).

sitkack|4 years ago

Given how bad a power fault is on a fab, chemical processes that can't be interrupted and air filtration and pressure systems, I'd put a redundant Tesla battery as the UPS to a fab, anywhere.

liketochill|4 years ago

I would install large diesel generators well before anything from tesla if I wanted a reliable power supply

MangoCoffee|4 years ago

i was thinking how come India didn't take China's approach to prop up their own foundry like SMIC. since India seem to have a need for semis. from the article:

"India’s semiconductor demand is said to be valued at around US$24 billion and is expected to reach US$100 billion by 2025. The country’s semiconductor demand currently is entirely met through imports."

jychang|4 years ago

How much of that is replaceable though? Most of those are Intel/AMD/etc chips that you can't just drop in another foundry to replace.