India is one of the fastest-growing economies in the world, with a large and expanding consumer market. The increasing adoption of digital technologies, smartphones, and other electronic devices has led to a surge in demand for semiconductors within the country. This domestic demand provides a strong foundation for semiconductor manufacturing and related industries to thrive.
The government has launched several initiatives to promote semiconductor manufacturing and attract investments in the sector. The "Make in India" campaign, introduced to boost domestic manufacturing across various industries, has a specific focus on electronics and semiconductors. Additionally, the government's National Policy on Electronics aims to make India a global hub for electronics manufacturing, including semiconductors.
The Centre wants to make India a hub for the semiconductor industry. The government is offering $10 billion in incentives for the development of a sustainable semiconductor and display manufacturing ecosystem in India. India has been forging partnerships with international semiconductor companies to leverage their expertise and establish a strong semiconductor ecosystem.
In March 2023, India signed an MoU with the US on establishing a chip supply chain and innovation partnership under the framework of India – US Commercial Dialogue. To show India's commitment to the industry, the government is offering $10 billion in incentives for the development of a sustainable semiconductor and display manufacturing ecosystem in India.
India is poised to become a major global hub in semiconductor manufacturing over the next 10 years. It has to continue working consistently to ensure that a robust ecosystem is in place to achieve that goal, communications minister Ashwini Vaishnaw said .
As per a report by Talent 101, the global semiconductor industry is facing a significant skills gap, with an estimated 10,000 open positions in USA alone. The same report also states that the industry will require more than one million skilled professionals by 2025 to keep up with the growing demand for semiconductors. At present, India is home to over 200 semiconductor design and embedded software companies and therefore it is an opportunity, presenting itself.
India’s semiconductor strategy was being developed brick by brick using the best talent available and creating a conducive eco-system. As the country's demand for semiconductors continues to grow at a rapid pace, meeting this demand can be a challenge and thereby a dire need to increase its pool of skilled manpower to support the industry.
Going forward, there are numerous steps that the government is taking to bridge this gap, more needs to be done to create a highly skilled workforce to support the growth of the semiconductor industry.
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