{"id":44584,"date":"2025-12-13T17:33:26","date_gmt":"2025-12-13T12:03:26","guid":{"rendered":"https:\/\/dailynewsindia.co.in\/index.php\/2025\/12\/13\/when-semiconductor-silicon-got-a-passport-and-discovered-borders-exist\/"},"modified":"2025-12-13T17:33:26","modified_gmt":"2025-12-13T12:03:26","slug":"when-semiconductor-silicon-got-a-passport-and-discovered-borders-exist","status":"publish","type":"post","link":"https:\/\/dailynewsindia.co.in\/index.php\/2025\/12\/13\/when-semiconductor-silicon-got-a-passport-and-discovered-borders-exist\/","title":{"rendered":"When Semiconductor Silicon Got a Passport and Discovered Borders Exist"},"content":{"rendered":"<div>\n<p data-start=\"174\" data-end=\"420\"><span data-sheets-root=\"1\"><strong>Mumbai (Maharashtra) [India], December 13:<\/strong> <\/span>For decades, the semiconductor industry lived by an unspoken rule: efficiency beats resilience. <a href=\"https:\/\/www.nist.gov\/chips\" target=\"_blank\" rel=\"noopener\">Chips<\/a> were designed in one country, manufactured in another, packaged somewhere else, and shipped everywhere. It worked beautifully \u2014 until it didn\u2019t.<\/p>\n<p data-start=\"422\" data-end=\"750\">The pandemic, trade wars, and a few strategically inconvenient conflicts did what years of policy papers failed to achieve: they scared governments into action. Suddenly, <a href=\"https:\/\/digital-strategy.ec.europa.eu\/en\/policies\/european-chips-act\" target=\"_blank\" rel=\"noopener\">semiconductors<\/a> were no longer \u201ccomponents.\u201d They were <strong data-start=\"647\" data-end=\"666\">national assets<\/strong>, geopolitical leverage, and in some cases, bargaining chips masquerading as wafers.<\/p>\n<p data-start=\"752\" data-end=\"934\">Now the supply chain is re-globalising \u2014 not retreating inward, not fully decoupling, but cautiously redistributing. Slowly. Expensively. With more press releases than finished fabs.<\/p>\n<p data-start=\"936\" data-end=\"954\">And yes, it hurts.<\/p>\n<p data-start=\"961\" data-end=\"1224\">This shift didn\u2019t begin with altruism or foresight. It began with car factories idled by chip shortages, defence contractors waiting on suppliers half a world away, and politicians realising that \u201cjust-in-time\u201d is a terrible strategy when borders close overnight.<\/p>\n<p data-start=\"1226\" data-end=\"1331\">The new consensus is simple: <strong data-start=\"1255\" data-end=\"1330\">no single region should control the silicon spine of the global economy<\/strong>.<\/p>\n<p data-start=\"1333\" data-end=\"1380\">The execution, however, is anything but simple.<\/p>\n<h3 data-start=\"1387\" data-end=\"1437\">What\u2019s Actually Changing (beneath the slogans)<\/h3>\n<p data-start=\"1439\" data-end=\"1561\">Governments are pouring money into fabs, packaging plants, and supply-chain redundancy \u2014 and the numbers are not symbolic.<\/p>\n<ul data-start=\"1563\" data-end=\"2149\">\n<li data-start=\"1563\" data-end=\"1705\">\n<p data-start=\"1565\" data-end=\"1705\">The <strong data-start=\"1569\" data-end=\"1586\">United States<\/strong> has committed <strong data-start=\"1601\" data-end=\"1621\">over $50 billion<\/strong> in incentives aimed at domestic semiconductor manufacturing and advanced packaging.<\/p>\n<\/li>\n<li data-start=\"1706\" data-end=\"1897\">\n<p data-start=\"1708\" data-end=\"1897\"><strong data-start=\"1708\" data-end=\"1717\">India<\/strong> has earmarked <strong data-start=\"1732\" data-end=\"1748\">$10+ billion<\/strong> for fabrication, assembly, testing, and packaging (ATMP), positioning itself as a backend and mid-chain hub rather than a bleeding-edge node leader.<\/p>\n<\/li>\n<li data-start=\"1898\" data-end=\"2007\">\n<p data-start=\"1900\" data-end=\"2007\"><strong data-start=\"1900\" data-end=\"1924\">Vietnam and Malaysia<\/strong> are expanding their roles in chip packaging, testing, and substrate manufacturing.<\/p>\n<\/li>\n<li data-start=\"2008\" data-end=\"2149\">\n<p data-start=\"2010\" data-end=\"2149\"><strong data-start=\"2010\" data-end=\"2020\">Mexico<\/strong> is emerging as a near-shore destination for automotive and industrial semiconductor supply chains tied to North American demand.<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"2151\" data-end=\"2308\">On paper, this looks like diversification. In practice, it\u2019s a global game of semiconductor Jenga \u2014 pull too hard in one place, and the entire tower wobbles.<\/p>\n<h3 data-start=\"2315\" data-end=\"2360\">The Uncomfortable Truth Nobody Advertises<\/h3>\n<p data-start=\"2362\" data-end=\"2471\">You can subsidise buildings.<br data-start=\"2390\" data-end=\"2393\">You can fast-track permits.<br data-start=\"2420\" data-end=\"2423\">You cannot instantly manufacture <strong data-start=\"2456\" data-end=\"2470\">experience<\/strong>.<\/p>\n<p data-start=\"2473\" data-end=\"2535\">A modern fab isn\u2019t just concrete and clean rooms. It requires:<\/p>\n<ul data-start=\"2536\" data-end=\"2755\">\n<li data-start=\"2536\" data-end=\"2576\">\n<p data-start=\"2538\" data-end=\"2576\">Process engineers trained over decades<\/p>\n<\/li>\n<li data-start=\"2577\" data-end=\"2640\">\n<p data-start=\"2579\" data-end=\"2640\">Yield optimisation expertise that doesn\u2019t come from textbooks<\/p>\n<\/li>\n<li data-start=\"2641\" data-end=\"2686\">\n<p data-start=\"2643\" data-end=\"2686\">Supply ecosystems that evolve, not relocate<\/p>\n<\/li>\n<li data-start=\"2687\" data-end=\"2755\">\n<p data-start=\"2689\" data-end=\"2755\">Vendors who know how to fix a problem before it becomes a headline<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"2757\" data-end=\"2808\">This is where optimism meets physics \u2014 and payroll.<\/p>\n<p data-start=\"2810\" data-end=\"3063\">Talent shortages are now the quiet bottleneck of re-globalisation. Countries can fund facilities, but they are competing for the same limited pool of specialists who already work in mature hubs. Training new engineers takes <strong data-start=\"3034\" data-end=\"3043\">years<\/strong>, not budget cycles.<\/p>\n<p data-start=\"3065\" data-end=\"3109\">Nobody likes to put that in a keynote slide.<\/p>\n<h3 data-start=\"3116\" data-end=\"3158\">Why Fabs have become Political Weapons<\/h3>\n<p data-start=\"3160\" data-end=\"3244\"><a href=\"https:\/\/www.asml.com\/en\/technology\" target=\"_blank\" rel=\"noopener\">Semiconductor<\/a> plants used to be corporate decisions. Now they are diplomatic events.<\/p>\n<p data-start=\"3246\" data-end=\"3310\">A fab announcement is no longer just about capacity; it\u2019s about:<\/p>\n<ul data-start=\"3311\" data-end=\"3399\">\n<li data-start=\"3311\" data-end=\"3328\">\n<p data-start=\"3313\" data-end=\"3328\">Trade alignment<\/p>\n<\/li>\n<li data-start=\"3329\" data-end=\"3356\">\n<p data-start=\"3331\" data-end=\"3356\">Military supply assurance<\/p>\n<\/li>\n<li data-start=\"3357\" data-end=\"3377\">\n<p data-start=\"3359\" data-end=\"3377\">Economic signaling<\/p>\n<\/li>\n<li data-start=\"3378\" data-end=\"3399\">\n<p data-start=\"3380\" data-end=\"3399\">Domestic job optics<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"3401\" data-end=\"3517\">This politicisation has benefits \u2014 faster approvals, guaranteed demand, policy focus \u2014 but it also distorts reality.<\/p>\n<p data-start=\"3519\" data-end=\"3718\">When fabs are built to satisfy strategic checkboxes rather than industrial logic, inefficiencies creep in. Costs rise. Delays multiply. And suddenly, resilience starts looking suspiciously expensive.<\/p>\n<p data-start=\"3720\" data-end=\"3732\">Which it is.<\/p>\n<h3 data-start=\"3739\" data-end=\"3781\">The Positive Angle (yes, there is one)<\/h3>\n<p data-start=\"3783\" data-end=\"3898\">Despite the friction, this slow re-globalisation is doing something valuable: <strong data-start=\"3861\" data-end=\"3897\">it\u2019s exposing hidden fragilities<\/strong>.<\/p>\n<ul data-start=\"3900\" data-end=\"4168\">\n<li data-start=\"3900\" data-end=\"3975\">\n<p data-start=\"3902\" data-end=\"3975\">Packaging and testing, once afterthoughts, are finally getting attention.<\/p>\n<\/li>\n<li data-start=\"3976\" data-end=\"4033\">\n<p data-start=\"3978\" data-end=\"4033\">Supply chains are being mapped with forensic precision.<\/p>\n<\/li>\n<li data-start=\"4034\" data-end=\"4098\">\n<p data-start=\"4036\" data-end=\"4098\">Governments are coordinating \u2014 imperfectly, but intentionally.<\/p>\n<\/li>\n<li data-start=\"4099\" data-end=\"4168\">\n<p data-start=\"4101\" data-end=\"4168\">Companies are designing products with sourcing flexibility in mind.<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"4170\" data-end=\"4265\">This is how mature industries evolve \u2014 painfully, under pressure, and slightly behind schedule.<\/p>\n<p data-start=\"4267\" data-end=\"4314\">And in the long run, redundancy beats elegance.<\/p>\n<h3 data-start=\"4321\" data-end=\"4369\">The Negative Angle (because reality insists)<\/h3>\n<p data-start=\"4371\" data-end=\"4409\">Let\u2019s not romanticise this transition.<\/p>\n<ul data-start=\"4411\" data-end=\"4674\">\n<li data-start=\"4411\" data-end=\"4484\">\n<p data-start=\"4413\" data-end=\"4484\">New fabs are <strong data-start=\"4426\" data-end=\"4458\">significantly more expensive<\/strong> outside established hubs.<\/p>\n<\/li>\n<li data-start=\"4485\" data-end=\"4545\">\n<p data-start=\"4487\" data-end=\"4545\">Subsidies risk creating zombie capacity if demand softens.<\/p>\n<\/li>\n<li data-start=\"4546\" data-end=\"4608\">\n<p data-start=\"4548\" data-end=\"4608\">Smaller firms struggle to navigate fragmented supply chains.<\/p>\n<\/li>\n<li data-start=\"4609\" data-end=\"4674\">\n<p data-start=\"4611\" data-end=\"4674\">Geopolitical hedging can turn into protectionism if mismanaged.<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"4676\" data-end=\"4728\">Most importantly:<br data-start=\"4693\" data-end=\"4696\"><strong data-start=\"4696\" data-end=\"4728\">True independence is a myth.<\/strong><\/p>\n<p data-start=\"4730\" data-end=\"4892\">Even the most localised fabs depend on global equipment suppliers, materials, and intellectual property. Re-globalisation reduces risk \u2014 it does not eliminate it.<\/p>\n<p data-start=\"4894\" data-end=\"4964\">Anyone promising otherwise is selling nationalism, not semiconductors.<\/p>\n<h3 data-start=\"4971\" data-end=\"5008\">The Part Executives Whisper About<\/h3>\n<p data-start=\"5010\" data-end=\"5088\">The supply chain isn\u2019t just moving geographically. It\u2019s shifting structurally.<\/p>\n<p data-start=\"5090\" data-end=\"5153\">Advanced nodes will remain concentrated because they must. But:<\/p>\n<ul data-start=\"5154\" data-end=\"5274\">\n<li data-start=\"5154\" data-end=\"5182\">\n<p data-start=\"5156\" data-end=\"5182\">Mature nodes are spreading<\/p>\n<\/li>\n<li data-start=\"5183\" data-end=\"5222\">\n<p data-start=\"5185\" data-end=\"5222\">Backend operations are decentralising<\/p>\n<\/li>\n<li data-start=\"5223\" data-end=\"5274\">\n<p data-start=\"5225\" data-end=\"5274\">Regional specialisation is becoming policy-driven<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"5276\" data-end=\"5379\">This isn\u2019t decoupling. It\u2019s <strong data-start=\"5304\" data-end=\"5333\">selective interdependence<\/strong> \u2014 the least dramatic, most realistic outcome.<\/p>\n<p data-start=\"5381\" data-end=\"5438\">Which explains why it doesn\u2019t trend well on social media.<\/p>\n<h3 data-start=\"5445\" data-end=\"5491\">Where We Are Now (late 2025 reality check)<\/h3>\n<ul data-start=\"5493\" data-end=\"5732\">\n<li data-start=\"5493\" data-end=\"5555\">\n<p data-start=\"5495\" data-end=\"5555\">Multiple fabs are under construction, fewer are operational.<\/p>\n<\/li>\n<li data-start=\"5556\" data-end=\"5615\">\n<p data-start=\"5558\" data-end=\"5615\">Packaging investments are ahead of fabrication timelines.<\/p>\n<\/li>\n<li data-start=\"5616\" data-end=\"5661\">\n<p data-start=\"5618\" data-end=\"5661\">Talent pipelines are lagging capital flows.<\/p>\n<\/li>\n<li data-start=\"5662\" data-end=\"5732\">\n<p data-start=\"5664\" data-end=\"5732\">Costs are up, resilience is improving, and patience is wearing thin.<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"5734\" data-end=\"5801\">Progress is happening \u2014 just not at the speed of press conferences.<\/p>\n<h3 data-start=\"5808\" data-end=\"5852\">Final Thought (measured, slightly sharp)<\/h3>\n<p data-start=\"5854\" data-end=\"5953\"><a href=\"https:\/\/www.semiconductors.org\/\" target=\"_blank\" rel=\"noopener\">Semiconductor<\/a> supply chains aren\u2019t breaking apart.<br data-start=\"5904\" data-end=\"5907\">They\u2019re learning to travel with a backup plan.<\/p>\n<p data-start=\"5955\" data-end=\"6079\">It\u2019s slower than globalisation.<br data-start=\"5986\" data-end=\"5989\">Messier than localisation.<br data-start=\"6015\" data-end=\"6018\">And far more honest than pretending geopolitics won\u2019t matter.<\/p>\n<p data-start=\"6081\" data-end=\"6156\">Silicon has a passport now.<br data-start=\"6108\" data-end=\"6111\">It just turns out immigration is complicated.<\/p>\n<p data-start=\"6081\" data-end=\"6156\"><a href=\"https:\/\/pnndigital.com\/category\/technology\/\" target=\"_blank\" rel=\"noopener\"><strong>PNN Technology<\/strong><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Mumbai (Maharashtra) [India], December 13: For decades, the semiconductor industry lived by an unspoken rule: efficiency beats resilience. Chips were designed in one country, manufactured in another, packaged somewhere else, and shipped everywhere. It worked beautifully \u2014 until it didn\u2019t. The pandemic, trade wars, and a few strategically inconvenient conflicts did what years of policy&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/dailynewsindia.co.in\/index.php\/2025\/12\/13\/when-semiconductor-silicon-got-a-passport-and-discovered-borders-exist\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;When Semiconductor Silicon Got a Passport and Discovered Borders Exist&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":44585,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[632],"class_list":["post-44584","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-technology"],"_links":{"self":[{"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/posts\/44584","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/comments?post=44584"}],"version-history":[{"count":0,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/posts\/44584\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/media\/44585"}],"wp:attachment":[{"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/media?parent=44584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/categories?post=44584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/tags?post=44584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}