{"id":2544,"date":"2026-05-04T07:11:27","date_gmt":"2026-05-04T07:11:27","guid":{"rendered":"https:\/\/spmiasacademy.com\/currentaffairs\/?p=2544"},"modified":"2026-05-04T07:11:31","modified_gmt":"2026-05-04T07:11:31","slug":"what-are-semiconductors-and-chips","status":"publish","type":"post","link":"https:\/\/spmiasacademy.com\/currentaffairs\/what-are-semiconductors-and-chips\/","title":{"rendered":"What Are Semiconductors and Chips? Types, Uses &#038; How They Power Modern Technology"},"content":{"rendered":"\n<p>Do you know what makes your smartphone work? What powers a satellite or an electric car? The answer is a tiny device called a semiconductor chip. Semiconductors and chips are now the foundation of the modern digital economy. India has launched a major push to build its own semiconductor industry. This topic is very important for UPSC, APSC, and all State PCS exams under Science and Technology and Economy sections.&nbsp;<\/p>\n\n\n\n<p>This article covers what a semiconductor is, how chips are made, and India&#8217;s growing role in global semiconductor manufacturing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Semiconductors and Chips: What Are They?<\/strong><\/h2>\n\n\n\n<p>A semiconductor is a material that can behave as both a conductor and an insulator of electricity. Conductors allow electricity to flow through them freely. Insulators block the flow of electricity. Semiconductors sit between these two extremes. Under certain conditions, they conduct electricity. Under other conditions, they resist it. This unique property makes them extremely useful in electronic devices.<\/p>\n\n\n\n<p>Semiconductors are the essential building blocks of modern electronics. They power smartphones, laptops, televisions, electric vehicles, defense equipment, and medical devices. In most electronic devices, semiconductors work like tiny electrical switches. They turn on and off rapidly to control the flow of electricity. This switching ability is the core of all digital computing.<\/p>\n\n\n\n<p>The most common semiconductor material is <strong>silicon<\/strong>. Silicon has four electrons in its outermost shell. This atomic structure makes it ideal for controlling electrical currents. Other semiconductor materials include <strong>germanium<\/strong>, <strong>gallium arsenide<\/strong>, <strong>silicon carbide<\/strong>, and <strong>gallium nitride<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/spmiasacademy.com\/currentaffairs\/wp-content\/uploads\/2026\/05\/image-5-1024x683.jpeg\" alt=\"What Are Semiconductors and Chips? Types, Uses &amp; How They Power Modern Technology\n\" class=\"wp-image-2545\" srcset=\"https:\/\/spmiasacademy.com\/currentaffairs\/wp-content\/uploads\/2026\/05\/image-5-1024x683.jpeg 1024w, https:\/\/spmiasacademy.com\/currentaffairs\/wp-content\/uploads\/2026\/05\/image-5-300x200.jpeg 300w, https:\/\/spmiasacademy.com\/currentaffairs\/wp-content\/uploads\/2026\/05\/image-5-768x512.jpeg 768w, https:\/\/spmiasacademy.com\/currentaffairs\/wp-content\/uploads\/2026\/05\/image-5.jpeg 1030w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Types of Semiconductors: Intrinsic and Extrinsic<\/strong><\/h2>\n\n\n\n<p>Scientists classify semiconductors into two main types based on their purity and composition.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Intrinsic Semiconductors:<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Intrinsic semiconductors are made of a single, pure material. Engineers do not add any impurities to them.\u00a0<\/li>\n\n\n\n<li>Common examples include <strong>silicon<\/strong>, <strong>germanium<\/strong>, <strong>carbon<\/strong>, and <strong>boron<\/strong>. They are also called <strong>elemental semiconductors<\/strong>. Their electrical conductivity depends only on temperature.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Extrinsic Semiconductors<\/strong><\/h3>\n\n\n\n<p>Extrinsic semiconductors undergo a process called <strong>doping<\/strong>. In doping, engineers intentionally add impurity atoms to the semiconductor&#8217;s crystal structure. This process changes its electrical properties. There are two types of doping:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>N-type doping:<\/strong> Engineers add elements with more electrons than the host material. This increases the number of free electrons. As a result, the material becomes more conductive.<\/li>\n\n\n\n<li><strong>P-type doping:<\/strong> Engineers add elements with fewer electrons than the host material. This creates what scientists call a &#8216;hole&#8217; &#8211; a gap where an electron is missing. These holes also increase conductivity.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What Is a Semiconductor Chip? The Brain of Every Device<\/strong><\/h2>\n\n\n\n<p>A semiconductor chip, also called an integrated circuit (IC) or microchip, is a tiny piece of semiconductor material. Engineers embed millions or even billions of electronic components on its surface. These components include transistors, resistors, and capacitors. Together, they perform complex computing tasks at very high speed.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The transistor is the most important component of a semiconductor chip. Engineers invented it in 1947.\u00a0<\/li>\n\n\n\n<li>Before transistors, devices used large vacuum tubes. Transistors are much smaller, faster, and more efficient.\u00a0<\/li>\n\n\n\n<li>Modern chips contain billions of transistors on a surface smaller than a fingernail.\u00a0<\/li>\n\n\n\n<li>According to Moore&#8217;s Law, the number of transistors on a chip doubles approximately every two years. This drives continuous improvement in computing power.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Semiconductor Manufacturing Process: How Chips Are Made<\/strong><\/h2>\n\n\n\n<p>Semiconductor manufacturing is one of the most complex and precise industrial processes in the world. Companies manufacture chips in highly specialised facilities called <strong>foundries<\/strong> or <strong>semiconductor fabs (fabrication plants)<\/strong>. The process starts with a thin slice of semiconductor material called a <strong>wafer<\/strong>. The most common <strong>wafer<\/strong> is made from <strong>silicon<\/strong>.<\/p>\n\n\n\n<p>The four main steps in semiconductor chip manufacturing are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Step 1 &#8211; Oxidation:<\/strong> Engineers first clean the silicon wafer with pure, deionised water. Then they heat it and expose it to pure oxygen. This creates a protective oxide layer on the wafer&#8217;s surface.<\/li>\n\n\n\n<li><strong>Step 2 &#8211; Masking (Photolithography):<\/strong> Engineers use highly precise stencils called <strong>photomasks<\/strong> to create circuit patterns on the wafer. This step defines the design and layout of the integrated circuit.<\/li>\n\n\n\n<li><strong>Step 3 &#8211; Etching:<\/strong> Engineers remove unwanted material from the wafer&#8217;s surface. This gives the chip its specific circuit pattern and shape.<\/li>\n\n\n\n<li><strong>Step 4 &#8211; Doping:<\/strong> Engineers add impurities to the wafer to change its electrical properties. This step creates the <strong>N-type<\/strong> and <strong>P-type <\/strong>regions needed for the chip to function.<\/li>\n<\/ul>\n\n\n\n<p>After fabrication, chips go through assembly, testing, marking, and packaging (ATMP). The finished chips then go to electronics manufacturers around the world.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Global Semiconductor Industry: Key Facts<\/strong><\/h2>\n\n\n\n<p>The global semiconductor industry has grown rapidly over the past two decades. According to the Semiconductor Industry Association (SIA), semiconductor sales grew from USD 139 billion in 2001 to USD 526 billion in 2023. The global semiconductor market is expected to reach USD 1 trillion by 2030.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Taiwan<\/strong> dominates global chip manufacturing. About 60% of the world&#8217;s semiconductor chips are made in Taiwan. More than 90% of the world&#8217;s advanced chips come from Taiwan.<\/li>\n\n\n\n<li>The Taiwan Semiconductor Manufacturing Company (TSMC), founded in 1987, is the world&#8217;s most advanced chip foundry. It produces chips for global giants like Apple and NVIDIA.<\/li>\n\n\n\n<li>Taiwan&#8217;s dominance has made semiconductors a major geopolitical issue. Both the USA and China consider control over chip supply chains a national security priority.<\/li>\n\n\n\n<li>The COVID-19 pandemic (2020-21) caused a severe global chip shortage. This shortage affected more than 169 industries worldwide. It disrupted automobile, electronics, and defence production.<\/li>\n\n\n\n<li>South Korea (Samsung, SK Hynix), the Netherlands (ASML), Japan, and the USA (Intel, Qualcomm, NVIDIA) are other major players in the global semiconductor ecosystem.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Semiconductors Matter: Benefits and Applications<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Firstly, semiconductors are small and lightweight. Modern chips fit billions of transistors on a tiny surface.<\/li>\n\n\n\n<li>Moreover, they consume very little power. Therefore, they make electric vehicles, data centres, and renewable energy systems more efficient.<\/li>\n\n\n\n<li>Additionally, semiconductors are highly reliable. Manufacturers test them rigorously, so they last long and perform consistently.<\/li>\n\n\n\n<li>Furthermore, they offer very fast processing speed. Modern chips perform billions of operations every second.<\/li>\n\n\n\n<li>In addition, engineers can customize semiconductor chips for specific tasks. For example, ASICs perform dedicated functions efficiently.<\/li>\n\n\n\n<li>Moreover, semiconductors have wide applications across industries. They power consumer electronics, automobiles, defence systems, healthcare, telecommunications, aerospace, and manufacturing.<\/li>\n\n\n\n<li>Finally, no modern device works without semiconductor chips. Therefore, they are the backbone of today\u2019s digital world.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/upscquiz.spmiasacademy.com\/quizzes\" target=\"_blank\" rel=\"noreferrer noopener\">UPSC MCQs<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India&#8217;s Semiconductor Mission: Building a Self-Reliant Chip Industry<\/strong><\/h2>\n\n\n\n<p>India has set a clear goal to become a global semiconductor hub. The Government of India approved the India Semiconductor Mission (ISM) in December 2021. This mission is implemented by the Ministry of Electronics and Information Technology (MeitY). ISM acts as the nodal agency to vet and approve semiconductor investments in India.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>India Semiconductor Mission: Key Features<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Total financial outlay: Rs. 76,000 crore to support fabrication, design, assembly, and testing.<\/li>\n\n\n\n<li>The government offers fiscal support of up to 50% of project cost for semiconductor fabs, compound semiconductor units, and ATMP\/OSAT facilities.<\/li>\n\n\n\n<li>As of December 2025, 10 projects have been approved across 6 states. Total cumulative investment is approximately Rs. 1.60 lakh crore.<\/li>\n\n\n\n<li>The Design Linked Incentive (DLI) scheme supports chip design startups and academic institutions.<\/li>\n\n\n\n<li>The Chips to Startups (C2S) programme has given Electronic Design Automation (EDA) tools to 278 academic institutions and 72 startups. Over 60,000 students have benefited as of August 2025.<\/li>\n\n\n\n<li>For 2026-27, a Modified Programme for semiconductor and display manufacturing has a financial outlay of Rs. 8,000 crore.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Semiconductor Manufacturing Companies in India: Major Projects<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Tata Electronics (Dholera, Gujarat): India&#8217;s first commercial semiconductor fabrication plant. Investment of Rs. 91,526 crore. Capacity of 50,000 wafers per month. This is India&#8217;s first AI-enabled fab. A Special Economic Zone (SEZ) for this project was notified in April 2026.<\/li>\n\n\n\n<li>Tata Semiconductor Assembly and Test (TSAT), Morigaon, Assam: Investment of Rs. 27,000 crore. Expected to produce up to 48 million chips per day. Will generate 15,000 direct and 11,000-13,000 indirect jobs.<\/li>\n\n\n\n<li>CG Power (CG Semi), Sanand, Gujarat: India&#8217;s first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) pilot line. Inaugurated in August 2025. This facility rolled out the first Made-in-India chips.<\/li>\n\n\n\n<li>Kaynes Semicon, Sanand, Gujarat: Shipped its first commercial chip modules in October 2025. Targets both US and domestic customers.<\/li>\n\n\n\n<li>Micron Technology (US): Invested over USD 2.75 billion in an Assembly, Testing, Marking, and Packaging (ATMP) plant in India.<\/li>\n\n\n\n<li>Lam Research (US): Committed over USD 1 billion in Karnataka for semiconductor tool engineering and training.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>India&#8217;s First Semiconductor Chip and Design Milestones<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In May 2025, India inaugurated its first centres for advanced 3-nanometre chip design in Noida and Bengaluru. The Union Minister for Electronics and IT, Shri Ashwini Vaishnaw, inaugurated these facilities.<\/li>\n\n\n\n<li>At the Global Investors Summit 2025, the government announced that India&#8217;s first indigenous semiconductor chip would be ready for production in 2025.<\/li>\n\n\n\n<li>20 chips from 17 academic institutions have been fabricated under the C2S programme, showing India&#8217;s push for indigenous research and development.<\/li>\n\n\n\n<li>Netrasemi, a chip design startup supported under the government scheme, raised Rs. 107 crore in venture capital funding in July 2025.<\/li>\n\n\n\n<li>AMD opened its largest global design centre in Bengaluru with a USD 400 million investment.<\/li>\n\n\n\n<li>SEMICON India 2025 (September 2-4, New Delhi) was the largest edition with over 350 exhibiting companies from 33 countries.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Strategic Importance of Semiconductors for India<\/strong><\/h2>\n\n\n\n<p>Semiconductors have become central to national security and economic growth. The Economic Survey 2025-26 highlighted that microprocessors form the backbone of energy networks, financial markets, and telecommunications. A reliable domestic supply of chips is essential for India&#8217;s stability and strategic autonomy.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Reducing import dependence:<\/strong> India currently imports most of its semiconductor chips. Building domestic capacity reduces this vulnerability.<\/li>\n\n\n\n<li><strong>Make in India and Viksit Bharat:<\/strong> The semiconductor mission directly supports the vision of a Developed India by 2047.<\/li>\n\n\n\n<li><strong>Defence and space:<\/strong> Indigenous chips will support India&#8217;s defence and space programmes. Dependence on foreign chips poses security risks.<\/li>\n\n\n\n<li><strong>Job creation:<\/strong> Major semiconductor projects will generate hundreds of thousands of direct and indirect jobs.<\/li>\n\n\n\n<li><strong>Global supply chain position:<\/strong> By 2029, India aims to manufacture chips for 70-75% of its domestic needs. By 2035, India aims to be among the top semiconductor nations globally.<\/li>\n\n\n\n<li><strong>India&#8217;s strengths:<\/strong> India has a rich talent pool in engineering and IT. It also has abundant raw materials and chemicals needed for semiconductor manufacturing.<\/li>\n<\/ul>\n\n\n\n<p>Stay updated with <strong><a href=\"https:\/\/spmiasacademy.com\/currentaffairs\" type=\"link\" id=\"https:\/\/spmiasacademy.com\/currentaffairs\" target=\"_blank\" rel=\"noreferrer noopener\">current affairs<\/a><\/strong> to strengthen your understanding of technology topics for competitive exams.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p>In conclusion, semiconductors and chips are the foundation of modern technology and the digital economy. They power everything from smartphones and computers to electric vehicles and defence systems. Moreover, their role in fast processing, energy efficiency, and innovation makes them essential for future growth.<\/p>\n\n\n\n<p>Furthermore, the global demand for semiconductor chips continues to rise rapidly. Therefore, countries like India are investing heavily through initiatives like the India Semiconductor Mission to build a strong domestic industry.<\/p>\n\n\n\n<p>Overall, understanding semiconductors, their types, manufacturing process, and applications is very important for UPSC, APSC, and other competitive exams. Hence, semiconductors will remain a key driver of technology, economy, and national security in the coming years.<\/p>\n\n\n\n<p>If you are preparing seriously, explore <strong><a href=\"https:\/\/spmiasacademy.com\/\" type=\"link\" id=\"https:\/\/spmiasacademy.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">UPSC coaching in Assam<\/a><\/strong> for expert guidance and structured preparation support.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Source:<\/strong><\/h2>\n\n\n\n<p><a href=\"https:\/\/www.ibm.com\/think\/topics\/semiconductors\" target=\"_blank\" rel=\"noreferrer noopener\">IBM<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Frequently Asked Questions:<\/strong><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1777877805397\"><strong class=\"schema-faq-question\"><strong>What are semiconductors and chips?<\/strong><\/strong> <p class=\"schema-faq-answer\"><br>Semiconductors are materials that can conduct or block electricity under certain conditions. Moreover, semiconductor chips are tiny devices that control electronic functions in modern gadgets.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1777877815669\"><strong class=\"schema-faq-question\"><strong>What are the types of semiconductors?<\/strong><\/strong> <p class=\"schema-faq-answer\"><br>There are two main types of semiconductors. Firstly, intrinsic semiconductors are pure. Secondly, extrinsic semiconductors contain impurities added through doping.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1777877828203\"><strong class=\"schema-faq-question\"><strong>How are semiconductor chips made?<\/strong><\/strong> <p class=\"schema-faq-answer\"><br>Engineers manufacture semiconductor chips through processes like oxidation, photolithography, etching, and doping. Therefore, these steps create complex circuits on silicon wafers.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1777877838892\"><strong class=\"schema-faq-question\"><strong>Why are semiconductors important in modern technology?<\/strong><\/strong> <p class=\"schema-faq-answer\"><br>Semiconductors are important because they power smartphones, computers, vehicles, and communication systems. As a result, they form the backbone of the digital economy.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1777877853380\"><strong class=\"schema-faq-question\"><strong>What is India\u2019s Semiconductor Mission?<\/strong><\/strong> <p class=\"schema-faq-answer\"><br>India\u2019s Semiconductor Mission aims to develop domestic chip manufacturing and reduce import dependence. Furthermore, it supports innovation, investment, and job creation in the semiconductor sector.<\/p> <\/div> <\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do you know what makes your smartphone work? What powers a satellite or an electric car? The answer is a tiny device called a semiconductor<\/p>\n","protected":false},"author":9,"featured_media":2546,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[339,341,338,336,340],"class_list":["post-2544","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-chip-manufacturing-process","tag-semiconductor-industry-india","tag-semiconductor-uses","tag-semiconductors-and-chips","tag-upsc-science-and-technology"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Semiconductors and Chips: Types, Uses Explained<\/title>\n<meta name=\"description\" content=\"Learn what semiconductors and chips are, their types, uses, and role in modern technology with India\u2019s semiconductor mission explained.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/spmiasacademy.com\/currentaffairs\/what-are-semiconductors-and-chips\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Semiconductors and Chips: Types, Uses Explained\" \/>\n<meta property=\"og:description\" content=\"Learn what semiconductors and chips are, their types, uses, and role in modern technology with India\u2019s semiconductor mission explained.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/spmiasacademy.com\/currentaffairs\/what-are-semiconductors-and-chips\/\" \/>\n<meta property=\"og:site_name\" content=\"SPM IAS Current Affairs\" \/>\n<meta property=\"article:published_time\" content=\"2026-05-04T07:11:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-05-04T07:11:31+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/spmiasacademy.com\/currentaffairs\/wp-content\/uploads\/2026\/05\/What-Are-Semiconductors-and-Chips-Types-Uses-How-They-Power-Modern-Technology.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"480\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"seo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"seo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/spmiasacademy.com\/currentaffairs\/what-are-semiconductors-and-chips\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/spmiasacademy.com\/currentaffairs\/what-are-semiconductors-and-chips\/\"},\"author\":{\"name\":\"seo\",\"@id\":\"https:\/\/spmiasacademy.com\/currentaffairs\/#\/schema\/person\/5252b78c3aa10e7187211f730626725f\"},\"headline\":\"What Are Semiconductors and Chips? 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