India ramped up semiconductor manufacturing in the year 2024, signalling the world of its seriousness in achieving a dominant provision in the world game-changing chips fab where only few countries are excelling.
The Ministry of Electronics and Information Technology (MeitY) spearheaded transformation in India’s semiconductor industry and digital technology landscape. These strides reflect India’s ambition to emerge as a global technology leader on the strength of inclusivity, innovation and a vast talent pool.
There have been several breakthroughs in semiconductor manufacturing during the year that is going by. Under the ambitious Semicon India Programme, the Government approved four landmark semiconductor manufacturing projects, attracting significant investments and advancing indigenous technology.
Tata Electronics Private Limited (TEPL) outlined its plan to set up a state-of-the-art semiconductor fabrication facility with an investment of Rs.91,526 crore in partnership with Taiwan’s PSMC, targeting a production capacity of 50,000 wafers per month.
Outsourced Semiconductor Assembly and Test (OSAT) facilities by TEPL, CG Power, and Kaynes Technology in collaboration with global tech leaders are projected to produce millions of chips daily, establishing India’s position as semiconductor hub of the world.
These initiatives not only position India as a future hub for advanced semiconductor manufacturing but will also generate jobs and strengthen nation’s self-reliance in critical electronics components.
India has emerged as a global leader in semiconductor design workforce, witnessing remarkable growth. Most of the leading international companies have established R&D (Research and Development) and innovation centres in India, drawn by the country’s exceptional design talent.
As per the ‘Semicon India Future Skills Talent Committee report’, about 1.25 Lakh semiconductor design engineers were working in India in the year 2022. According to other estimates of the Semiconductor Industry Association (SIA) and Boston Consulting Group (BCG) report ‘Emerging Resilience in the Semiconductor Supply Chain’, Indian engineers accounts to about 19% of global design engineers as against 7% of chip design facilities of the world that are present in India.
There is also a boost in India’s semiconductor ecosystem with Government focused on its objective of building the overall semiconductor design and manufacturing ecosystem with an emphasis on fostering R&D in semiconductor area in the country.
MeitY supports R&D projects in the area of semiconductors at academic institutions, research organizations, and startup companies through a dedicated R&D Scheme. Some of these include, but not limited to, nanotechnology, semiconductor materials, semiconductor processes, chip design, semiconductor IP Cores, etc.
The Government has also approved the ‘Modified Programme for Semiconductors and Display Fab Ecosystem’ with an outlay of Rs.76,000 crore in order to catalyse the semiconductor & display ecosystem in the country. Up to 2.5% of the outlay is earmarked for meeting the R&D, skill development and training requirements for the development of semiconductor ecosystem in India. Additionally, Rs.1000 crore has been earmarked for the Design Linked Incentive Scheme under the Programme for supporting fabless chip design industry, including semiconductor R&D activities.
There indeed is an all round acknowledgement of the importance of nurturing world-class talent to build a robust semiconductor ecosystem, which calls for capacity-building initiatives, and skill development programmes to address workforce gaps in India.
At recently inaugurated Semicon India 2024 on the theme ‘Shaping the Semiconductor Future’ India showcased its semiconductor strategy and policy which envisions making India a global hub for semiconductors. The who’s who of global semiconductor giants were there at the conference where more than 250 exhibitors and 150 speakers confabulated on their upcoming plans.
The unprecedented scale of the event and the coming together of more than 100 CEOs and CXOs from all over the world representing the total electronic supply chain for semiconductors in itself was testimony to recognition of India’s position in the industry. The semiconductor industry is foundational to every industry in the world.
President and CEO of Tata Electronics, Dr Randhir Thakur threw light on the 11 ecosystem areas crucial to chip making, He said that the efforts of the Government have brought all these ecosystems under one roof here at SEMICON 2024. He credited the Prime Minister Narendra Modi’s global outreach and emphasis on India’s semiconductor mission for establishing key partnerships with ecosystem players to further growth.
The industry leaders have assured the Prime Minister that the semiconductor industry will become the bedrock of the vision of Viksit Bharat 2047 and it will have a multiplier effect on job creation which is sorely needed not only to make the ends meet, but also to calm the frustration building up among young talent and contain the brain drain as a result of it.
