For decades, India has aspired to become a leader in the semiconductor industry. With strategic efforts and investments, the country is poised to transform its semiconductor sector, striving for native independence and economic growth. In FY 2024, the Indian government approved a significant investment in semiconductor and electronics production, marking a pivotal moment in the country's technological advancement.
India's ambitious semiconductor initiative includes the establishment of its first state-of-the-art semiconductor fab, along with two packaging and test facilities. These $15.2 billion projects aim to enhance the country's semiconductor manufacturing capabilities.
The fab will be in a new industrial zone in Dholera, Gujarat, Prime Minister Narendra Modi's home state. Tata projects that this venture will directly or indirectly create over 20,000 skilled jobs in the region, contributing significantly to local employment and economic growth. As India's semiconductor market, valued at $22 billion in 2019, is expected to triple to $64 billion by 2026 and grow to $110 billion by 2030, the demand for a skilled workforce is more critical than ever.
The semiconductor industry requires a diverse range of skill sets, including fabrication, design, testing, and software development. According to the IT&IF report, about 20 percent of the world's semiconductor design engineers are based in India, highlighting the country's potential in this field. Between March 2019 and 2023, semiconductor job openings in India increased by 7 percent, indicating a growing demand for skilled professionals.
To meet this demand, India aims to inspire engineering and technology students to upskill in semiconductor-based technologies. This includes fostering expertise in areas such as VLSI (Very Large Scale Integration) design, which is crucial for developing advanced semiconductor devices. The Telecom Sector Skill Council (TSSC) recognizes the existing skill gap and has initiated several programs to develop skills among the Indian youth.
Recently, TSSC partnered with "Semicon Academy" to offer specialized training in design, testing, and physical implementation in the VLSI domain. This initiative aims to integrate high-end skills training into colleges, schools, and corporate environments within this fiscal year. The goal is to build a robust talent pool capable of driving innovation and growth in the semiconductor industry.
The convergence of the semiconductor and telecom sectors is pivotal for technological advancement in India. Semiconductors are fundamental to telecom devices' functioning, and the telecom sector's growth further amplifies the need for skilled semiconductor professionals. With the advent of 5G technology and the increasing reliance on smart devices, the demand for advanced semiconductor components in telecom infrastructure is surging.
TSSC's initiatives are designed to bridge the skill gap in the telecom sector. By equipping students and professionals with the necessary skills, TSSC aims to support the deployment of cutting-edge telecom technologies and the development of indigenous semiconductor solutions. This symbiotic relationship between the two sectors is expected to drive innovation, create job opportunities, and position India as a global semiconductor hub. By nurturing a skilled workforce, the country can ensure sustained growth, innovation, and self-reliance in the semiconductor and telecom sectors, contributing significantly to its economic and strategic objectives under the Viksit Bharat 2047 vision.
“The Indian semiconductor industry's growth trajectory is promising, bolstered by substantial government investments and strategic skill development initiatives. It is a significant boost for the Indian semiconductor industry and will benefit the aspiring youth and the Digital India movement," says Sumit Munjal (Senior General Manager, Telecom Sector Skill Council). “This initiative will enhance many startups, create jobs, and drive product development, particularly in the telecom, electronics, and power sectors. It will attract talented students to electronics and related courses, foster skilling, and pave the way for India to become the next semiconductor talent hub.”
As India advances towards becoming a global leader in semiconductor manufacturing, the focus on skill development will be crucial.