Global semiconductor supply chains undergo shift via US, India, and Japan subsidies

Global efforts to diversify the semiconductor supply chain are accelerating through significant government subsidies and new industrial schemes. In the United States, the 2022 CHIPS and Science Act has directed historic funding toward domestic manufacturing, supporting facility expansions for companies such as TSMC in Arizona and Samsung Electronics in Texas. This strategy aims to mitigate vulnerabilities caused by the high concentration of advanced chip fabrication in Taiwan.

International cooperation is further driving geographic diversification, including TSMC’s establishment of a fabrication plant in Kumamoto, Japan, and manufacturing expansions in Germany.

Simultaneously, India has notified its Semicon 2.0 scheme, an initiative with an outlay of Rs 1.27 lakh crore. The program is designed to bolster the national chip ecosystem across six segments, including chip design, fabrication, assembly, packaging, and testing. The scheme seeks to build resilient and sovereign semiconductor technologies by focusing on the development of local Intellectual Property (IP) cores and modules for critical national infrastructure.