It was 1901, when the first semiconductor device, called ‘Cat’s whisker’ was invented by prominent Indian scientist Sir Jagadish Chandra Bose. Building on this rich legacy, India is moving ahead for a transformative journey in the semiconductor industry. The foundation laid by Acharya Bose’s work has ignited a spark that is now evolving into a full-fledged flame of technological advancement. With a growing emphasis on innovation, research, and development, India is becoming a hotspot for semiconductor manufacturing.
As our lives become more reliant on technology, semiconductors have become the essential foundation of the modern world. These tiny chips do a lot — they power our gadgets, make our communication systems work, and even contribute to driving our cars. They are like the unsung heroes behind the scenes, making sure everything runs smoothly in our tech-driven daily lives.
The semiconductor space in India has been buzzing with action over the last few weeks. Recently, Union Commerce and Industry Minister Piyush Goyal held a meeting with the CEO of Micron Technology Sanjay Mehrotra and discussed how India’s growing semiconductor ecosystem presents vast opportunities for the company to collaborate and expand its footprint in India. In June this year, Micron Technology had announced its plans of investing USD 825 million towards a new USD 2.75 billion chip assembly and testing plant in Gujarat with support from the India Semiconductor Mission. India hopes to become a major global hub in semiconductor manufacturing over the next 10 years. US President Joe Biden also recently pledged in APEC CEO Summit in San Francisco “commitment to strengthen” the semiconductor supply chain with India.
India has grand plans to become an electronics manufacturing hub. The future of the semiconductor industry in India holds significant potential and opportunities, driven by various factors and initiatives such as the Indian government’s ‘National Policy on Electronics’ and the ‘Production-Linked Incentive (PLI) Scheme’ for the electronics industry that aim to boost domestic semiconductor manufacturing. While India has traditionally been a consumer of semiconductor products, recent developments and policies are aiming to transform the country into a major player in semiconductor manufacturing, design and research.
The Game Changer for India and the World
Semiconductors are materials that possess a unique set of electrical properties, making them crucial components in various fields. The semiconductor industry is a game-changer for the future of India and the world due to its transformative impact on various aspects of modern life and technological advancement. This industry serves as a very important industry for continuous research and development, driving technological breakthroughs and ensuring that nations remain at the forefront of emerging technologies.
Ensuring a robust domestic semiconductor industry is not only an economic imperative but a matter of national security, as it underpins critical components for various applications. As the world pivots toward emerging technologies like 5G, IoT, and quantum computing, the semiconductor industry becomes even more indispensable, positioning nations with strong semiconductor capabilities as global leaders. Moreover, the industry’s role in job creation, environmental sustainability through energy-efficient technologies, and its contribution to digital transformation further underscore its significance. In essence, the semiconductor industry is a game changer, influencing the economic, technological, and strategic landscapes of nations, and shaping the course of future progress and innovation.
Why Semiconductor Companies are Choosing India
India possesses several advantages that make it an attractive destination for establishing semiconductor industries. Firstly, the country boasts a large pool of skilled engineers and scientists, providing a robust talent base for research, development, and innovation in semiconductor technology. Additionally, India’s strong information technology (IT) sector and software capabilities synergize well with semiconductor manufacturing, fostering a conducive ecosystem for technological integration.
Moreover, the government’s initiatives like the ‘Make in India’ campaign and various semiconductor-focused policies aim to incentivize and facilitate semiconductor manufacturing in the country. This includes financial incentives, infrastructure support, and simplified regulatory processes. These measures not only attract domestic investment but also entice global semiconductor giants to set up production units in India. Geopolitically, India’s strategic location enhances its appeal, offering a stable and secure environment for semiconductor manufacturing operations. The growing demand for electronic devices and the increasing focus on digital transformation further position India as a key player in the global semiconductor supply chain. Also, India’s demographic dividend, with a large consumer base and a rising middle class, presents a substantial market for semiconductor products. Establishing semiconductor industries in India can potentially address domestic demands while contributing to export growth. India’s skilled workforce, government initiatives, strategic location, and expanding market make it advantageous for the establishment of semiconductor industries, positioning the country as a significant player in the global semiconductor landscape.
The talent factor in India’s Semiconductor future
The Indian government has been active in the matter of bringing forward the talent required to make India the hub of semiconductor industry. In August 2022, it established the Semicon India Future Skills Talent Committee, tasked with delving deep into this matter and crafting a roadmap for positioning ‘India as a Semiconductor Talent Nation’.
Meeting the demands of the semiconductor industry in India involves anticipating the need for 275,000 skilled individuals in chip design, 25,000 in semiconductor fabrication, and 29,000 in ATMP facilities over the next ten years. Recognizing the important role of high-quality education in establishing a flourishing semiconductor ecosystem, India has initiated crucial measures. This includes the revision of curricula to provide diplomas and degrees in fields related to the semiconductor sector. The All-India Council for Technical Education (AICTE) has been proactive in shaping the curriculum for BTech in Electronics (VLSI Design and Technology) and Diploma in IC manufacturing. The government’s ongoing investment in robust academic programmes is crucial for ensuring a steady talent pipeline for the semiconductor industry. Beyond traditional education, fostering a dynamic startup culture in chip design and manufacturing is equally important. This ecosystem will not only contribute to the industry but also play a crucial role in laying the groundwork for establishing a foundry for actual chip fabrication.
Challenges and Road Ahead
To boost our semiconductor industry, experts advise that India should focus on ease of doing business and also offer incentives. Making semiconductors is super complex, needing extreme precision at the smallest level such as atoms! Since the global chip world is closely connected, India must team up with other countries to make the most of its capabilities. For the semiconductor industry to grow, we need several manufacturing hubs and a mix of suppliers. The industry is poised to nearly double in revenue by the end of this decade to support emerging applications with more chip content, such as autonomous machines, smart medical devices, 6G communications, and AI across electronics. The recent massive subsidy and incentive programmes are a testament to the fact that policymakers around the globe have come to understand the magnitude of investment required to gain semiconductor manufacturing share. India must stay the course and continue to invest in the industry to reap its benefits. In short, India has a chance right now to get into the semiconductor game, given the global geopolitical situation. It just needs a solid, long-term plan and strong government support for lasting success.
In conclusion, from the ‘Cat’s whisker’ to the contemporary semiconductor landscape, India’s journey has been remarkable. As the country forges ahead, the future holds immense promise with semiconductor industries playing a crucial role in shaping the technological landscape, driving economic growth, and placing India at the forefront of global innovation.
*Prof RS Sengar is Director, Training Placement and Head, Division of Plant Biotechnology, Sardar Vallabhbhai Patel University of Agriculture and Technology, Meerut, while Kartikey Sengar is an engineer and software developer, JSS Academy of Technical Education, Noida.
