India’s Semiconductor Landscape: Growth and Investment
India is rapidly establishing itself as a global leader in semiconductor design. The country has seen significant growth in its semiconductor workforce, attracting major international companies to set up research and development (R&D) centers. This surge is largely due to India’s exceptional talent pool in semiconductor design. According to the ‘SemiconIndia Future Skills Talent Committee report,’ approximately 125,000 semiconductor design engineers were employed in India in 2022. Furthermore, the Semiconductor Industry Association (SIA) and Boston Consulting Group (BCG) report indicates that Indian engineers represent about 19% of the global semiconductor design workforce. As of May 2024, India hosts 7% of the world’s chip design facilities, highlighting its growing importance in the global semiconductor supply chain.
Boosting India’s Semiconductor Ecosystem
The Indian government is committed to enhancing the semiconductor ecosystem through various initiatives. The Ministry of Electronics and Information Technology (MeitY) is at the forefront, focusing on R&D in semiconductors. The government supports numerous projects in academic institutions, research organizations, and startups. These projects cover a wide range of areas, including nanotechnology, semiconductor materials, chip design, and semiconductor IP cores.
Since 2014, MeitY has allocated substantial budgets for R&D in electronics, including semiconductors. The government has also approved the ‘Modified Programme for Semiconductors and Display Fab Ecosystem,’ with an outlay of ₹76,000 crore. This program aims to catalyze the semiconductor and display ecosystem in India. Notably, up to 2.5% of this budget is earmarked for R&D, skill development, and training. Additionally, ₹1,000 crore has been set aside for the Design Linked Incentive Scheme, which supports the fabless chip design industry and semiconductor R&D activities.
The government’s recognition of the need for world-class talent is crucial for building a robust semiconductor ecosystem. By investing in capacity-building initiatives and skill development programs, India aims to address workforce gaps and ensure sustainable growth in this vital sector.
Building Talent for the Future
To sustain its growth in the semiconductor industry, India must focus on developing a skilled workforce. MeitY has initiated various capacity development and skill enhancement programs at academic institutions and R&D organizations. Some notable initiatives include the Special Manpower Development Programme for Chips to System Design (SMDP-C2SD), which ran from 2014 to 2021, and the Indian Nanoelectronics User Programme (INUP), which operated from 2014 to 2019. More recent programs like the INUP Idea to Innovation, launched in 2021, and the Chips to Start-up (C2S) Programme, initiated in 2022, aim to foster innovation and entrepreneurship in the semiconductor space.
The government has consistently allocated funds for capacity building and skill development in the semiconductor sector. For instance, the budget for these initiatives has varied over the years, reflecting the government’s commitment to nurturing talent. In 2023-24, ₹28.95 crore was allocated for skill development, with ₹69.84 crore earmarked for 2024-25 (till date). These investments are essential for ensuring that India can meet the growing demands of the semiconductor industry and maintain its competitive edge on the global stage.
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