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Navigating Global Challenges: The Crucial Role of Semiconductors in Advancing Globalization

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Abstract

The semiconductor industry, often regarded as the backbone of modern technology, has played a pivotal role in driving globalization. However, in recent years, the industry has encountered a myriad of challenges that threaten its ability to meet the ever-increasing demand for semiconductor chips. This paper explores the multifaceted challenges facing the semiconductor industry, including the disruptive impact of the COVID-19 pandemic, escalating geopolitical tensions, and persistent supply chain disruptions. Additionally, it delves into how technological advancements and the rapid proliferation of digital devices have further heightened the demand for semiconductor chips. Geopolitical conflicts, trade barriers, and concerns related to the security of intellectual property have cast a shadow of uncertainty over the semiconductor industry's global supply chain. In this context, collaborative efforts, strategic investments, and international partnerships are identified as critical factors for ensuring the industry's resilience and its indispensable role in advancing technology and driving globalization. This paper offers recommendations to address these challenges and bolster the semiconductor industry's ability to innovate and thrive in an increasingly complex landscape. Firstly, it underscores the importance of fostering international collaboration and cooperation among governments, industry leaders, and research institutions to mitigate the impact of geopolitical tensions on the global semiconductor supply chain. Secondly, strategic investments in research and development (R&D) initiatives are advocated to fuel innovation and maintain a competitive edge. Moreover, the paper emphasizes the necessity of diversifying supply chain sources and securing critical raw materials to mitigate the risks posed by supply chain disruptions. Strengthening domestic semiconductor manufacturing capabilities is also recommended to reduce dependency on a limited number of global manufacturers. Lastly, it highlights the significance of establishing robust intellectual property protection mechanisms and promoting fair trade practices to build trust and stability in the semiconductor industry.

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Source: SIA State of Industry Report, 2022

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Acknowledgements

The authors would like to acknowledge Mamta Bhattarai of South Asian University, Delhi, for valuable inputs during the manuscript preparation. The authors would also like to extend thank to Dev Raj Adhikari, School of management, Tribhuvan University for his valuable guidance.

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Authors and Affiliations

  1. Telecommunication Engineering School, University of Malaga, Málaga, Spain

    Ritu Raj Lamsal

  2. School of Management, Tribhuvan University, Kirtipur, Nepal

    Anurodh Devkota

  3. Department of Physics, St. Xavier’s College, Kathmandu, Nepal

    Madhu Sudhan Bhusal

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  1. Ritu Raj Lamsal
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RRL contributed to conceptualization, methodology, formal analysis, investigation, review, and editing. AD helped in concept, background study, review and editing writing—original draft preparation, and data curation. MSB helped in review and editing and data presentation. All authors have read and agreed to the published version of the manuscript.

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Correspondence to Ritu Raj Lamsal.

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Lamsal, R.R., Devkota, A. & Bhusal, M.S. Navigating Global Challenges: The Crucial Role of Semiconductors in Advancing Globalization. J. Inst. Eng. India Ser. B 104, 1389–1399 (2023). https://doi.org/10.1007/s40031-023-00938-4

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