The semiconductor industry in India is undergoing a transformative shift, and we stand on the cusp of a new era. Long reliant on imports for critical semiconductor needs, our country is now positioning itself as a vital player in the global supply chain. This transition is driven by a confluence of strategic government initiatives, global trends, and a burgeoning domestic demand, all of which promise to reshape India’s economy and significantly impact its job market. The stage is set for India to emerge not only as a consumer of semiconductors but also as a producer and innovator in this high-tech domain.
The global semiconductor industry owes much to visionary leaders. Morris Chang, often called the “Father of Semiconductors,” revolutionised the industry by founding Taiwan Semiconductor Manufacturing Company (TSMC) in 1987. Chang’s vision was groundbreaking—he pioneered the pure-play foundry model, where TSMC would manufacture chips exclusively for other companies without competing with them in design. This innovation democratised access to semiconductor manufacturing, enabling fabless companies to thrive and accelerating technological advancements globally. Under his leadership, TSMC grew into a semiconductor giant, reshaping the global supply chain and setting the stage for the industry’s rapid evolution. Chang’s foresight continues to inspire emerging semiconductor ecosystems, including India’s.
As the world seeks alternatives to traditional manufacturing hubs, especially China, the “China Plus One” strategy has gained traction. India’s political stability, competitive labour costs, and favourable policy environment make it an attractive destination for global semiconductor giants. New partnerships with industry leaders such as Intel, Foxconn, and TSMC underline India’s growing credibility as a key player in the global semiconductor supply chain. This global realignment presents India with a unique opportunity to integrate itself into the semiconductor ecosystem like no other country can. The country’s IT expertise, particularly in software development, complements its hardware ambitions, making it an ideal partner for companies looking to design and produce cutting-edge chips for applications ranging from artificial intelligence (AI) to the Internet of Things (IoT). No other country can lay claim to such competencies in the integration of the complex and complete semiconductor value chain.
Perhaps India, with these unique capabilities, can learn from how Nvidia has changed the paradigm. Under Jensen Huang, the visionary CEO and co-founder, NVIDIA has successfully transitioned from being a pioneer in graphics processing units (GPUs) for gaming to a trailblazer in AI-driven computing. Huang’s focus on specialised chips, like the NVIDIA A100 and H100, has propelled advancements in artificial intelligence, machine learning, and data centres, enabling breakthroughs in fields ranging from healthcare to autonomous vehicles. By integrating software and hardware seamlessly, Huang is setting new standards in performance and efficiency, cementing NVIDIA’s role as a leader in the next era of semiconductor technology.
Pivotal to India’s semiconductor ambitions is the government’s proactive approach. The $10 billion Semicon India Program has been a strategic intervention, offering incentives for companies to establish semiconductor and display manufacturing facilities within the country. Complementing this is the Production Linked Incentive (PLI) scheme, which encourages domestic manufacturing across sectors, including electronics, thereby amplifying the demand for locally produced chips. These policies reflect a concerted strategic effort to attract global players and foster a robust semiconductor ecosystem within India. Additionally, the government has introduced the Design Linked Incentive (DLI) and other schemes such as Chips to Startup (C2S) and Scheme for Promotion of Electronic Components and Semiconductors (SPECS) to support the industry.
Further bolstering these initiatives is a focus on research and development (R&D). Recognising that a skilled workforce is the backbone of this industry, the government has increased funding for semiconductor education and training programmes. This effort aims to bridge the skill gap and ensure that India’s workforce is equipped to meet the demands of an industry characterised by rapid technological advancements. The establishment of Centers of Excellence (CoEs) in collaboration with leading academic institutions and private entities highlights the commitment to fostering innovation and preparing a future-ready talent pool.
As per the India Brand Equity Foundation (IBEF) the Indian semiconductor market was valued at US$ 26.3 billion in 2022 and is projected to expand at a CAGR of 26.3% to US$ 271.9 billion by 2032. Domestically, India’s demand for semiconductors is very strong and growing at an unprecedented rate. The consumer electronics market is experiencing exponential growth, fuelled by a burgeoning middle class with an insatiable appetite for smartphones, wearables, and smart home devices. Combined with the rapidly growing automotive industry, where modern conventional vehicles as well as the new generation of electric vehicles (EVs) and connected technologies require large volumes of smart chips--powering everything from battery management systems (BMS) to advanced driver-assistance systems (ADAS). The ever-increasing internet penetration and a burgeoning startup ecosystem is also bolstering demand. With the internet user base expected to grow from 622 million in 2020 to 900 million in the near future, the semiconductor market is poised for significant growth.
The semiconductor industry’s growth is poised to significantly benefit India’s job market. In recent years, India has made remarkable strides in the semiconductor industry and has become one of the leading countries with a highly skilled pool of semiconductor design engineers. Some estimates suggest that Indian engineers account for around 20% of the world’s semiconductor design workforce, with over one lakh VLSI Design Engineers working in both global semiconductor companies and domestic design service companies. Indian engineers play a significant role in various stages of the design process, from specifications and architecture to physical implementation, verification, manufacturing support, and testing and qualification. Industry estimates suggest that by 2030, the sector could generate between one and two million direct and indirect jobs. These opportunities span the entire semiconductor value chain, from design and fabrication to testing, validation, and supply chain management. Roles such as chip design engineers, embedded systems developers, and process engineers shall continue to be in high demand. Moreover, the rise of specialised areas like AI-optimised chip design and nanotechnology is creating niche opportunities for researchers and innovators.
To meet this demand, there has been a concerted push to align educational curricula with industry needs. Specialised courses in VLSI design, semiconductor physics, and nanoelectronics are becoming increasingly prevalent in Indian universities. Collaborative efforts between academia and industry are fostering hands-on training through internships and apprenticeships, ensuring that graduates are job-ready. The government’s emphasis on skill development through initiatives like Skill India underscores the critical role of education in driving the sector’s growth. In our own way, the Techno India Group (TIG) is playing an active role in this transformation. Through specialised industry aligned courses offered across our education institutes to organising special interactive seminars like “Chips to Careers” at Sister Nivedita University (SNU), Kolkata, TIG is driving stakeholder engagement at multiple levels. We have specialised courses such as Bachelors in VLSI & Semiconductor Engineering that directly address industry needs.
While the prospects are promising, India’s semiconductor journey is not without challenges. High capital expenditure requirements for setting up fabs (fabrication facilities) remain a significant barrier. Infrastructure gaps, particularly in terms of power and water supply—both critical for semiconductor manufacturing—poses additional hurdles. Moreover, India’s reliance on imports for critical raw materials such as silicon wafers and rare earth elements exposes the industry to supply chain vulnerabilities. Addressing these challenges will require a multi-pronged approach, including policy interventions to attract foreign investments, the development of indigenous raw material supply chains, and leveraging public-private partnerships to share risks and costs.
In its march towards becoming a semiconductor powerhouse, India has the potential to shape not just its own future but the trajectory of global technology. The industry’s success will hinge on its ability to innovate, collaborate, and overcome challenges—paving the way for a new era of self-reliance and global leadership in semiconductors!
The author is the Group CEO of Techno India Group, a visionary and an educator. Beyond his corporate role, he is also a mentor who guides students towards resilience and self-discovery