India is betting huge on semiconductors. The present semi-conductor design leadership in the country could persuade economic growth and prosperity for decades with the latest semi-conductor technology and semi-conductor modeling paradigms. Through innovations, the industry can attract and retain the world’s top innovative minds and promote open markets around the world. Semiconductor design architecture fosters key innovations across the digital economy in areas such as artificial intelligence, 5G communications, robotics, digital healthcare, and autonomous vehicles.

Leadership & Demand for Talent

Demand for talent in India's burgeoning semiconductor sector is being driven by new investments and the government's ambitious plan to transform the country into a chip manufacturing hub. With 1.5 million engineering graduates every year and the software and IT boom in the last two decades, there are a few takers for microelectronics, electrical, chemical, and material engineering. Lack of awareness and availability of job options are the main arguments for the same. Therefore, it is crucial to address these two aspects to reduce the existing skill gap in the ESDM and semiconductor industries.

“The demand for talent in the sector has reached an all-time high for building infrastructure, industrial parks, testing systems, and R&D,” said Yeshab Giri, chief commercial officer of operational talent solutions at Randstad India.

Ajit Manocha, president and CEO of SEMI says, “Skill shortages are a global problem in this industry. There's not a single country in the world that says, ‘I don't have a problem with the talent’. Overall, STEM education in the Western world has gone down by a factor of two in the last 20 years. Additionally, population control in Asian countries has become very popular. There used to be two or more children per couple. Now it is 1.3 children per couple. So, if you look at the STEM education population, it has gone down by a factor of two. But the industry is going up by a factor of two. Some gaps will be closed by artificial intelligence (AI) and other automation. Yet, by 2030, we will need one million additional workers in the semiconductor industry because there's a large retiring or aging population in this sector. And the growth of semiconductors is tremendous, with about 94 fabs coming online between 2022 and 2026.” 

The Make in India Initiative

Countries like the United States, Japan, South Korea, Taiwan, and the Netherlands dominate the global semiconductor supply chain. The Chinese-US trade dispute highlighted the importance of in-country chip production in India, boosting the country's ambition to become a global leader in semiconductor production. It's important not to dismiss this goal as empty rhetoric. It requires a coordinated and strategic approach from all parties involved, including the authorities, commercial entities, academic institutions, and research establishments.

The Make in India initiative has progressed in numerous areas, but the semiconductor sector requires remarkable concentration and investment. The absence of a comprehensive semiconductor policy was one of the primary obstacles facing India. Countries like China, the United States, and South Korea have devised ambitious national plans to enhance their semiconductor capabilities. There's been no coherent plan in India for decades, covering things like research and development, talent, infrastructure, and incentives for semiconductor manufacturing. A dedicated policy framework that encouraged innovation, supported indigenous start-ups and lured global semiconductor titans to establish fabrication facilities in India was crucial for the country.

The Indian government recognized the significance of advancing its domestic semiconductor sector and began launching initiatives to aid its expansion. For example, in 2021, India's Union Cabinet approved the Semicon India Program (Program for Development of Semiconductors and Display Manufacturing Ecosystem in India), with an outlay of Rs 760 billion ($10 billion), for the development of a sustainable semiconductor and display manufacturing ecosystem Later, the program was modified and launched as the 'Modified Semicon India Program' in September 2022, with increased competitiveness and additional subsidies.

Cutting-edge Semiconductor Infrastructure in India

The Indian semiconductor market is expected to grow significantly, reaching $ 55 billion by 2026 and $ 85 billion by 2030. The investments in the sector, combined with the China+1 policy adopted by global companies, will contribute to India's emergence as a prominent semiconductor hub. The vast manpower can only be harnessed by enhancing skills. 

There is a lack of cutting-edge infrastructure in India's semiconductor sector. Private players often stay behind in advanced chip fabrication facilities because of the substantial risks involved. Offering financial incentives, subsidies, and infrastructure support to encourage both domestic and foreign investments in the semiconductor industry is crucial for overcoming this obstacle.

Public-private partnerships can also help establish semiconductor manufacturing clusters similar to successful models in other countries. The country's semiconductor ambitions are at a crossroads. The challenges are daunting, but there are also numerous opportunities.

Creating a comprehensive semiconductor policy, investing in talent growth and infrastructure, safeguarding intellectual property, encouraging collaborations, and promoting environmental responsibility can pave the way for a semiconductor revolution in India.

 

The Ministry of Electronics and Information Technology has been doing an amazing job pushing world-class policies, procedures, and initiatives to attract global semiconductor partners and put their best foot forward to enable India's dream of becoming a superpower and a global leader in semiconductor design and manufacturing.

Initiatives by Top Companies 

Vedanta established a semiconductor facility collaboration with Foxconn (Hon Hai Precision). The move was part of the government's PLI scheme, which aimed to position India as a significant semiconductor hub. Other players, such as the ISMC and the Interuniversity Microelectronics Centre, also sought to set up semiconductor fabrication units under the same scheme. With an investment of Rs 1.5 trillion, the Vedanta-Foxconn joint venture chose Gujarat for its semiconductor endeavor. The project included a fabrication plant worth Rs 945 billion and a semiconductor fabrication and assembly and testing plant worth Rs 600 billion. Vedanta remains committed to entering the semiconductor industry even though the joint venture with Foxconn did not materialize. To become the first Indian company in the integrated semiconductor and display fab business, the company intends to acquire semiconductor and display businesses from its sister concern, Twin Star Technologies.

Besides Vedanta, the Tata Group is also making strides in semiconductor chip manufacturing through Tata Electronics. US-based Micron Technology has plans to construct a chip assembly and test facility in Gujarat.