What are semiconductor chips? Semiconductor chips, also known as integrated circuits (ICs), are a crucial component in today's digital world, used in an ocean of applications across industries including electronics, appliances, automobiles, gaming, healthcare, transportation, power, clean energy, defence systems, and artificial intelligence (AI). Imagining a world without semiconductors is essentially imagining one without smartphones, laptops, TVs, video games, modern cars, advanced wireless networks, and the likes.

What are semiconductor chips and how do they work? 

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A semiconductor chip is a small piece of silicon containing electronic circuitry that performs various functions. These chips are made up of a variety of tiny electronic components, such as transistors, diodes and resistors, all interconnected meticulously to perform specific tasks. 

The semiconductor material used in these chips is typically silicon, although other materials like germanium and gallium arsenide are also used.

What is a semiconductor?

A semiconductor is a material that contains properties that fall between the categories of conductors and insulators. It can conduct electricity under certain conditions and insulate under others. Simply put, it is a crucial material that is capable of conducting more electricity than an insulator, such as wood or plastic, but less than a conductor, such as copper or steel. It is this unique characteristic of semiconductors that makes them essential in the production of electronic devices.

Unlike conductors that allow electricity to flow freely, semiconductors provide something called ‘controlled conductivity’, which makes them ideal for regulating and switching electrical signals in devices such as transistors.

And there are several types of semiconductors offering a vast variety of distinct characteristics and features. 

Although semiconductors serve as key components in a vast range of products and services, here are five common applications where chips are used: 

  • Computing and IT: Semiconductor chips are the backbone of modern computing devices, including computers, laptops, tablets and servers. These chips are used in central processing units (CPUs), graphics processing units (GPUs), and memory modules to enable the processing and storage of data.
  • Communication devices: Semiconductor chips are essential components in communication devices such as smartphones, routers, modems, and satellite communication systems. These chips enable wireless communication, data transmission, and signal processing. 
  • Consumer electronics: Semiconductor chips are widely used in consumer electronics products like televisions, cameras, gaming consoles and smart home devices. These chips enable the functionality and connectivity of these devices, enhancing user experience.
  • Automobiles: Semiconductor chips play a crucial role in the automotive industry, powering advanced driver-assistance systems (ADAS), infotainment systems, engine control units (ECUs), and sensors. These chips help improve vehicle performance, safety and efficiency.
  • Healthcare and medical devices: Semiconductor chips are used in a host of medical devices and equipment, including MRI machines, pacemakers, insulin pumps and digital thermometers. 

Did you know that semiconductors are among the top five exports of the world’s largest economy? 

According to the Semiconductor Industry Association (SIA), a US-based trade group, more than four-fifths of American semiconductor companies’ sales are to overseas customers. 

India and semiconductors  

On March 13, 2024, Prime Minister Narendra Modi laid the foundation stone of three semiconductor projects, estimated to be worth Rs 1.25 lakh crore, as part of his government's vision to position India as a global hub for semiconductor design, manufacturing and technology development. 

ALSO READ: PM Modi dedicates to nation Rs 1.25 lakh-crore semiconductor facilities, says India taking big step towards bright future

The central government’s ‘India Semiconductor Mission’ aims to build a vibrant semiconductor and display ecosystem to enable the country’s emergence as a global hub for electronics manufacturing and design.