India’s Chip Manufacturing Race: Where Is the Real Money? 🇮🇳
Motilal Oswal Financial Services • 6 days ago
What This Video Is About
The video provides an introduction to chip manufacturing, explaining the three-step process of designing, manufacturing, and assembling chips. It also delves into the cost and value analysis of chip production, noting that design costs account for a significant portion of the value generated.
Major Ideas Discussed
- The chip manufacturing process involves designing, manufacturing, and assembling, with design being the most valuable part.
- The cost of manufacturing accounts for approximately two-thirds of the total expenditure but generates only about a quarter of the value.
- Packing costs around 10-15% of the total expenditure and brings in about 5% of the value.
- Design costs around 10-15% of the total expenditure but generates approximately 50% of the value.
- India has approved 12 chip projects, including 9 packing plants and 3 fabrication plants, and 24 chip design projects from small startups.
- The government has approved Semicon 2.0, a program worth 1.27 lakh crore, to boost India's position in the chip industry.
What to Watch Next
The development of Semicon 2.0 and its impact on India's chip manufacturing industry, as well as the growth of small startups in the sector, are worth monitoring.