India’s Bold Move to Build a Robust Semiconductor Ecosystem
In a significant step towards self-reliance and technological advancement, the Government of India has unveiled its ambitious semiconductor development strategy, inspired by the vision of ‘Atmanirbhar Bharat’ and the initiatives ‘Make in India’ and ‘Make for the World.’ This strategy aims to establish a comprehensive ecosystem for the semiconductor industry, which plays a crucial role in the global economy.
Under the newly launched ‘Semicon India Programme,’ the government has approved ten semiconductor manufacturing units with a massive investment of ₹1.6 lakh crore. These include facilities for silicon fabrication, silicon carbide production, and advanced packaging technology. The approved projects will address the chip demands across various sectors such as consumer electronics, automotive, telecommunications, and aerospace.
In addition to the Semicon India Programme, the government has introduced the Production Linked Incentive (PLI) scheme to boost large-scale electronics manufacturing, particularly for mobile devices and essential components. This initiative has attracted investments totaling approximately ₹14,065 crore, with aims to enhance production until October 2025. Further, the PLI for IT hardware, targeting manufacturing of laptops, tablets, servers, and ultra-small form factor devices, has garnered an impressive ₹846 crore in investments.
These strategic measures have resulted in significant growth within India’s electronics manufacturing sector, which has expanded nearly six-fold over the past 11 years, surging from ₹1.9 lakh crore in 2014-15 to an expected ₹11.32 lakh crore by 2024-25. Exports in the electronics category have similarly witnessed explosive growth, increasing eight-fold from ₹38 thousand crore in 2014-15 to an anticipated ₹3.26 lakh crore by 2024-25, making electronics the third-largest export category in the country.
Fostering a Design Ecosystem
To further capitalize on India’s capabilities in chip design, the government has launched the Design Linked Incentive (DLI) Scheme. This initiative has already supported 23 companies in creating 24 unique chip designs for applications in satellite communications, drones, surveillance technologies, and the Internet of Things (IoT). Additionally, 94 startups have gained access to free Electronic Design Automation (EDA) tools, resulting in approximately 47 lakh hours of usage for innovative design.
Building a Skilled Semiconductor Workforce
The government has adopted a holistic strategy to cultivate a talent pipeline in the semiconductor industry. Through the ‘Chips to Start-up’ (C2S) Programme, cutting-edge design tools are being provided to 397 universities and startups. As a result, chip designers from over 46 universities have successfully designed and fabricated 56 chips at the Semiconductor Laboratory in Mohali, with training provided to more than 67,000 students and researchers.
Additionally, the All India Council for Technical Education (AICTE) has introduced new engineering courses focusing on VLSI design and integrated circuit manufacturing. A new Skilled Manpower Advanced Research and Training (SMART) Lab in Calicut aims to train 100,000 engineers, with more than 62,000 engineers having already completed training. Collaborations with industry leaders like Lam Research are set to boost training in nanofabrication, aiming to create 60,000 skilled professionals over the next decade.
The FutureSkills PRIME program, a collaboration between the Ministry of Electronics and Information Technology (MeitY) and the National Association of Software and Service Companies (NASSCOM), focuses on skilling and reskilling in emerging technologies, including semiconductors. This initiative ensures that training aligns with employment needs, providing accessible online courses for aspiring learners.
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