Barriers to manufacturing integrated circuit chips in the Indian semiconductor manufacturing industry using the grey influence analysis (GINA)

Purpose This study identifies and ranks the barriers to manufacturing integrated circuit (IC) chips in the Indian semiconductor manufacturing industry by examining the causal relationships between the different barriers using an advanced causal modeling technique named the grey influence analysis (GINA). Moreover, IC plays a crucial function in reducing the size, boosting the speed and improving the dependability of electronic devices. The widespread use of these technologies has led to advancements in sectors such as communications, healthcare, transportation and entertainment. Design/methodology/approach This study investigates 12 factors related to the barriers to manufacturing IC chips. In addition, experts from an Indian semiconductor manufacturing organization have validated the presence of these barriers. In addition, the research employs a novel GINA to investigate and comprehend the influence relationships between these barriers. Findings To successfully manufacture IC chips in India, the “Government Policies and Regulations (B11),” “Lack of Semiconductor Fabrication Facilities (B1)” and “Dependence on Imported Raw Materials and Components (B2),” were the critical barriers that must be addressed and overcome, as per the GINA result. Practical implications The author highlighted that a lack of fabrication plants could lead to limited production of the semiconductor chips and that a lack of local fabs can hinder the development of advanced technologies. The complex policy can significantly affect the set-up of new semiconductor fabs, hamper the overall growth of the semiconductor market and divert away foreign investors. This further creates restrictions on employment creation and undermines the economy. Originality/value Although semiconductor applications have several benefits, more research is needed to identify the barriers to manufacturing IC chips in India, making this study unique. In addition, the advanced GINA method is also used to examine the critical barriers and their interconnection based on an expert response-based study from an Indian semiconductor organization.