The U.S.-led "Fab 4" semiconductor alliance of Taiwan, the United States, Japan and South Korea held its first video meeting of senior officials to focus on supply chain resilience.
The United States last September convened the first meeting of the working group, colloquially called "Fab 4" or "Chip 4", to discuss how to strengthen the semiconductor supply chain, after a global chip crunch caused by the COVID-19 pandemic.
The meeting discussed setting up an early warning system to ensure a steady chip supply.
The Taiwan representatives suggested that the Fab 4 should exchange information on different parts of the supply chain as early as possible.
Taiwan and South Korea will handle manufacturing issues, Japan will report on materials issues and the US will concentrate on market issues.
What is Fab 4 chip group?
It is asemiconductor alliance of Taiwan, the United States, Japan and South Korea.
The "Fab" in the name refers to a shorthand industry expression for the fabrication plants where chips, used in everything from fridges and smartphones to fighter jets, are made.
The group's members are home to the world's largest contract chip maker Taiwan Semiconductor Manufacturing Co Ltd (2330.TW), South Korean memory chip giants.
Samsung Electronics Co Ltd (005930.KS) and SK Hynix (000660.KS), and key Japanese suppliers of semiconductor materials and equipment.
As important members of the Indo-Pacific region, the countries also play a key role in the global semiconductor industry, and have deep economic and trade relations with countries in the region.
Why is semiconductor industry important?
A semiconductor is a substance that has specific electrical properties that enable it to serve as a foundation for computers and other electronic devices.
Semiconductor Chips: Semiconductors are materials which have conductivity between conductors and insulators. They can be pure elements, silicon or germanium or compounds; gallium, arsenide or cadmium selenide.
They are the basic building blocks that serve as the heart and brain of all modern electronics and information and communications technology products.
These chips are now an integral part of contemporary automobiles, household gadgets and essential medical devices such as ECG machines.
Government Initiatives in India:
In 2021:10 billion dollar production-linked incentive (PLI) scheme to encourage semiconductor and display manufacturing in the country.
Fiscal support for a design-linked initiative (DLI) schemeto drive global and domestic investment related to design software, IP rights etc.
Modifications in “Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India:The Union Cabinet has approved a uniform incentive of 50% of the projectcost for setting up semiconductor, display and compound semiconductor fabrication units.
India Semiconductor Mission (ISM)”will be set up with a total financial outlay of Rs 76,000 crore under the aegis of the Ministry of Electronics and IT (MeitY)
Scheme for setting up of Compound Semiconductors facilities.
Vedanta and Taiwanese chipmaker Foxconnwill set up a Rs.1, 54,000 crore semiconductor plant in Gujarat.