The Importance of Semiconductors

Semiconductors are the backbone of modern technology, powering smartphones, computers, cars, medical devices, and emerging fields like AI, IoT, and quantum computing. The COVID-19 pandemic exposed vulnerabilities in global semiconductor supply chains, prompting India to prioritize a domestic ecosystem to enhance national security and foster technological innovation.

India’s Semiconductor Landscape

India has long been a hub for semiconductor design, hosting major design centers for companies like Intel, Qualcomm, and AMD. However, manufacturing has relied heavily on imports. The India Semiconductor Mission (ISM) and Semicon India program are transforming this by promoting domestic fabrication, assembly, testing, and packaging, positioning India as a global electronics leader.

Major Semiconductor Projects

The Semicon India program has spurred significant projects to bolster India’s semiconductor industry:

• Tata Electronics’ Fab (Dholera, Gujarat): India’s first fab, in partnership with PSMC, producing 50,000 wafers monthly.
• Micron Technology’s ATMP Facility (Sanand, Gujarat): Specializes in assembly, testing, marking, and packaging of memory and storage products.
• CG Power & Industrial Solutions’ OSAT Plant (Sanand, Gujarat): Collaborates with Renesas Electronics and Stars Microelectronics.
• Kaynes Technologies and AOS: Establishing a semiconductor unit in Sanand, Gujarat.
• HCL Technologies – Foxconn JV: Setting up an OSAT unit in Jewar, Uttar Pradesh.

Market Growth and Workforce Needs

India’s semiconductor market, valued at $26.3 billion in 2022, is projected to reach $54 billion by 2025 and $271.9 billion by 2032, with a CAGR of 26.3%. To meet this demand, the industry will require 1.2 million skilled workers by 2032, spanning chip design, fabrication, and packaging. While India holds 20% of the global design workforce, gaps in fabrication and packaging talent are being addressed through skill development programs and industry-academia collaborations.

Looking Ahead

India’s semiconductor ecosystem is on a trajectory of rapid growth, driven by strategic government initiatives, global partnerships, and a focus on innovation. By reducing reliance on imports and building a skilled workforce, India is poised to become a global semiconductor leader, powering the next era of technological advancements.