The core focus of ‘Atmanirbhar Bharat’ emphasizes the importance of skilling. A recent report by Talent 101 reveals a significant skills gap in the global semiconductor industry, particularly in the USA, where there are approximately 10,000 open positions. To meet the growing demand for semiconductors, the industry will require over one million skilled professionals by 2025.
India, with its population of over 1.3 billion and strong education system, has the potential to address this talent shortage and become a powerhouse in the semiconductor industry. However, it is crucial for India to prioritize the development of the right skills and capabilities.
According to the India Brand Equity Foundation (IBEF), India already houses more than 200 semiconductor designs and embedded software companies, presenting a promising opportunity. As the country’s demand for semiconductors continues to rise, there is a pressing need to increase the pool of skilled manpower to support the industry.
Growth of Semiconductor Industry in India
Skilled manpower plays a vital role in product design, manufacturing process improvement, quality control, and innovation. To meet the conservative estimate of requiring around 1.5 million skilled workers in the semiconductor industry by 2026-27, India needs to address the existing shortage. This industry segment is critical for the development of various sectors such as electronics, AI/ML, telecommunications, space, defense, aerospace, and automotive.
The Indian semiconductor market was valued at nearly $23.2 billion in 2021 and is projected to reach $80.3 billion by 2028, growing at a CAGR of 17.10% during the forecast period. The global semiconductor market is also expected to grow at a CAGR of 6.7% from 2021 to 2028, with a market value of $527.88 billion in 2021. These components play an integral part on some fast growing industries in India and globally (read blog)
Significance of the Industry in India
Recognizing the significance of this industry, the government has implemented various measures and policies. The ‘Make in India’ initiative, launched in 2014, aims to promote manufacturing in India and establish the country as a global manufacturing hub. The government has also introduced initiatives like the Production Linked Incentive (PLI) scheme, which includes a $1.7 billion incentive package for companies setting up these manufacturing facilities in India. Other programs, such as Design Linked Incentive (DLI), Chips to Startup (C2S), and Scheme for Promotion of Electronic Components and Semiconductors (SPECS), contribute to enabling the growth of the semiconductor industry.
To support the semiconductor industry’s future, the government has taken steps to develop a pool of skilled manpower. Changes in curriculum introduced by AICTE, along with industry collaboration, are aimed at nurturing talent. However, India needs to focus on building a robust ecosystem that includes supply chain management, design and manufacturing facilities, and public-private partnerships for training and certification.
Successful models and practices from countries like Taiwan, South Korea, and Singapore can serve as inspiration for India’s semiconductor industry development. Public-private partnerships, investment in STEM education, research centers, and collaborations with universities have proven effective in building skilled workforces in these countries.
In addition to providing training and education, creating an environment conducive to innovation and entrepreneurship is essential. This requires a supportive policy environment, incentives for semiconductor production, dynamic industry-relevant curriculum from academia, and collaboration between industry and academia.
The industry must actively collaborate with academia by offering training and internship opportunities, investing in R&D for new technologies and products, and funding exchange opportunities for students. Developing a strong supply chain and manufacturing facilities is also crucial to support the industry’s growth in India.
Creating a highly skilled workforce is an ongoing effort that demands continuous investment and collaboration between the government, industry, and academia. India’s immense talent, manufacturing capabilities, and potential as a global R&D hub make
