India’s semiconductor industry is in the midst of a remarkable surge, bolstered by surging global demand, strategic government incentives, and a groundbreaking Lithium discovery in Jammu and Kashmir. With a highly skilled workforce and initiatives like ‘Make in India’ and the PLI scheme, India is poised to establish itself as a global force in semiconductor manufacturing. The sector’s projected growth from $23.2 billion to $80.3 billion by 2028 underscores India’s potential impact on the global tech stage, offering a glimpse into a future where India plays a pivotal role in shaping the semiconductor landscape.
In the throes of a technological renaissance, the global appetite for semiconductors has reached unprecedented heights. Fueled by the rapid proliferation of 5G technology, the burgeoning cryptocurrency mining industry, and steadfast government efforts towards comprehensive digitalization, the semiconductor sector has emerged as the linchpin of modern technological advancement. This surge in demand, however, has unearthed a glaring supply shortage, exacerbated by strained relations between industrial behemoths, the United States and China, both pivotal players in the semiconductor arena.
In the midst of this evolving landscape, India emerges as a potential game-changing force. With a population eclipsing 1.4 billion and an educational infrastructure renowned for producing skilled technocrats, India harbors the necessary ingredients to evolve into a semiconductor talent powerhouse. The only questions are how bright are the prospects and whether India can sustain this opportunity in the long run.
India’s Semiconductor Landscape: A Growth Trajectory
The Indian semiconductor market, valued at $23.2 billion, is on a trajectory to reach $80.3 billion by 2028, demonstrating a robust CAGR of 17.10%. This growth is fueled by both domestic demand and India’s emerging role as an outsourcing hub for semiconductor design and engineering. With a substantial focus on research and development, India is rapidly becoming a hotspot for innovation in semiconductor technology.
Additionally, India’s semiconductor ecosystem benefits from a favorable demographic dividend. The country boasts a significant population of young, tech-savvy professionals, which positions it as a talent powerhouse in the industry. This demographic advantage is further complemented by the government’s initiatives to nurture and develop a skilled workforce for the future.
Government Initiatives: Creating a Roadmap for Semiconductor Dominance
The ‘Make in India‘ initiative, launched in 2014, lays the foundation for a conducive environment for manufacturing, with a particular focus on the electronics sector. The Production Linked Incentive (PLI) scheme, offering a substantial $1.7 billion incentive package, has been a game-changer in attracting companies to establish semiconductor manufacturing facilities in India. This policy not only solidifies India’s position in the global semiconductor supply chain, but also generates a ripple effect of job opportunities and economic growth.
Furthermore, the Design Linked Incentive (DLI) scheme, along with initiatives like Chips to Startup (C2S) and the Scheme for Promotion of Electronic Components and Semiconductors (SPECS), reinforces India’s commitment to becoming a semiconductor manufacturing powerhouse. These initiatives provide critical support to startups, fostering innovation and competition in the sector.
India’s Skilled Workforce: A Force to be Reckoned With
India proudly hosts a highly skilled pool of semiconductor design engineers, comprising approximately 20% of the world’s semiconductor design workforce. With over one lakh VLSI Design Engineers actively contributing to cutting-edge chip development, India’s imprint in the semiconductor industry is unmistakable. These professionals play a vital role in various stages of the design process, from specifications and architecture to physical implementation and post-Si testing.
The government’s collaboration with educational institutions, exemplified by the efforts of the All India Council for Technical Education (AICTE), ensures a steady influx of talent into the industry. Curriculum changes and industry participation are central to nurturing the next generation of semiconductor engineers, preparing them for the dynamic demands of the sector.
Lithium: India’s Game-Changer in Semiconductor Manufacturing
A monumental breakthrough has unfolded in Jammu and Kashmir, where the Geological Survey of India has unearthed 5.9 million tonnes of Lithium reserves. This discovery is poised to revolutionize India’s role in semiconductor production. Lithium, a non-ferrous metal and a crucial component in EV batteries, is also integral to semiconductor manufacturing. With this unprecedented find, India is positioned to secure a substantial position in the global Lithium market, significantly enhancing its semiconductor manufacturing capabilities.
The implications of this discovery extend beyond semiconductor manufacturing. Lithium, often referred to as the ‘white gold of energy storage technology’, holds immense importance in areas of national security, nuclear medicine, and scientific research. India’s newfound Lithium reserves thus open up avenues for broader advancements in various fields of science and technology.
Collaborative Ventures: Demonstrating India’s Capacity
Leading American semiconductor giants like Micron Technology, Applied Materials, and Lam Research Corporation have recognized India’s potential and have made significant investments in the India Semiconductor Mission. These collaborations aim to strengthen semiconductor supply chains and promote collaborative innovation. Micron Technology’s $825 million investment in a new semiconductor facility in Gujarat is a signals to India’s emergence as an important location for semiconductor manufacturing.
Additionally, Applied Materials’ plan to establish a collaborative engineering center in Bengaluru signifies India’s growing importance in the global semiconductor ecosystem. This center will serve as a hub for applied engineers, suppliers, research institutions, and academic bodies, driving innovation and development in semiconductor equipment sub-systems and components.
A Bright Future Awaits
India’s trajectory towards semiconductor manufacturing dominance is marked by strategic government initiatives, a burgeoning skilled workforce, and the newfound treasure trove of Lithium reserves. With the support of global industry leaders, India is poised to make a substantial impact on the global semiconducter landscape. As the world races towards a semiconductor-driven future, India stands at the cusp of not only meeting its domestic demands, but also contributing significantly to the global semiconductor ecosystem. The white gold of energy storage technology, coupled with India’s immense potential, paints a bright and promising future for the country’s emerging semiconductor industry.
