Solar Energy a better investment than Fabs
"...if the government wants to provide incentive for a new industry to come, then those should go towards solar energy rather than towards semiconductor Fab manufacturing. " - Bhavin Shah of JP Morgan speaking on the sidelines of the JP Morgan IT Conference.
Semiconductor manufacturing represents the pinnacle of manufacturing capability for a country. Nations rush to get investments in this sector from the handful of companies that have this technology. The glory though is not always accompanied by financial riches. Margins for manufacturers are thinner than the silicon wafers they make. And now JP Morgan in a recent report state that it does not do much for the economy either, though chip design firms like this one are more than welcome.
The interesting thing though is that the solar energy industry is being suggested as an alternative.
"There are still many opportunities for innovation for solar energy industry. Currently, the solar cells are based on semiconductor technology, but there are opportunities to change the materials that could generate much lower cost and bring down the cost of solar energy. Also, with lot of rural demand for energy, solar energy is ideally suited.
"While this industry will be competitive, the growth opportunity is very strong given Indian energy dependence and requirements; we feel it is ideally suited for India. So if the government wants to provide incentive for a new industry to come, then those should go towards solar energy rather than towards semiconductor Fab manufacturing"
