Summary: Renowned author and expert in microchip technology, Professor Chris Miller, suggests that governments should prioritize investing in chip design rather than semiconductor fabrication plants. Speaking at the Tamil Nadu Global Investor Meet (GIM) 2024, Miller emphasized that due to the high costs involved in fabrication, governments should be cautious about spending significant amounts in this area. Instead, he advises that the marginal dollar would be better utilized in other parts of the chip value chain. While he acknowledges the importance of having a domestic fabrication base, Miller argues against over-emphasizing fabs, as chip design presents a more lucrative opportunity.
According to Miller, chip design offers considerable potential for countries looking to establish themselves in the semiconductor industry. He highlights that India, in particular, has a deep labor force in chip design and is well positioned to tap into this growing market. Furthermore, the country’s focus on chip design would lead to increased interest in setting up assembling and test facilities, fulfilling the demand of local industries for more domestic suppliers.
Miller also discusses the shifting dynamics in the semiconductor market. Taiwanese firms, concerned about limited growth prospects in China, are increasingly looking to India as a viable market. As China aims to replace Taiwanese firms and its own economy slows down, India’s significant market potential becomes increasingly attractive. Miller shares an anecdote about his own experience in Taiwan, where he struggled to meet industry executives due to their visits to India, further highlighting the growing interest in the country.
While India has launched a $10 billion chip subsidy scheme to attract semiconductor manufacturers, Miller argues that pursuing chip design offers more promise as a long-term strategy. His book, “Chip War: The Fight for the World’s Most Critical Technology,” provides an in-depth account of the battle for microchip technology and underscores its immense importance in today’s world.
In conclusion, Miller’s insights suggest that governments should carefully consider their options when investing in the semiconductor industry. While fabrication plants have their merits, focusing on chip design may offer greater opportunities for growth and success.
The source of the article is from the blog girabetim.com.br