India’s semiconductor industry is on the brink of massive expansion, with projections indicating it will grow to Rs. 3.47 lakh crore (US$ 40 billion) by 2030. This growth is being propelled by advancements in the semiconductor supply chain ecosystem, particularly in chemicals and gases essential for chip manufacturing. According to the India Electronics and Semiconductor Association (IESA), India is striving to capture 10% of the global semiconductor market, which is projected to reach Rs. 36.51 lakh crore (US$ 420 billion) by 2030.

India’s Semiconductor Growth and Global Positioning

Speaking at the IESA Vision Summit, IESA President Mr. Ashok Chandak highlighted the complexity of the semiconductor manufacturing industry, which involves contributions from over 10 countries. He stressed that India must develop a strong local supply chain to compete on a global scale. This includes securing essential gases, chemicals, and materials required for semiconductor fabrication.

With major economies like the US, China, and Taiwan already leading in chip manufacturing, India is positioning itself as a key player by fostering global collaborations and policy initiatives to boost domestic production.

Workforce Expansion and Industry Readiness

The semiconductor sector in India will require a significant workforce expansion to sustain its projected growth. The IESA report estimates that by 2026-27, India will need:

• 1.50 million skilled workers trained in semiconductor design, fabrication, and packaging.
• 5 million semi-skilled workers for roles across the semiconductor supply chain, including manufacturing, testing, and logistics.

To address this demand, India is investing in talent development programs, partnering with global institutions to train engineers and technicians in semiconductor technology.

Key MoUs and Industry Partnerships

The IESA Vision Summit witnessed over 30 Memoranda of Understanding (MoUs) being signed between Indian and global semiconductor firms, marking a major milestone in the industry's growth. Notably:

• Tata Electronics signed agreements with Powerchip Semiconductor Manufacturing Corporation (PSMC) and Himax Technologies, strengthening India's semiconductor manufacturing capabilities.
• Several state governments and private players committed to developing semiconductor manufacturing clusters across India.

These collaborations signify a strong push towards semiconductor self-reliance, reducing India's dependency on imports while enhancing domestic capabilities.

Challenges and Future Roadmap

Despite the promising outlook, India's semiconductor industry faces several challenges:

• Infrastructure gaps: Building fab facilities and semiconductor clusters requires significant capital investment and advanced technological know-how.
• Global competition: Established semiconductor hubs like Taiwan, South Korea, and the US have decades of expertise and supply chain integration.
• Raw material dependency: India still relies on imports for many critical raw materials essential for semiconductor manufacturing.

To overcome these challenges, the government is focusing on policy incentives, infrastructure development, and public-private partnerships to create a self-sufficient semiconductor ecosystem.

Conclusion

India's semiconductor industry is set for exponential growth, projected to reach Rs. 3.47 lakh crore (US$ 40 billion) by 2030. With supply chain advancements, workforce expansion, and global collaborations, the sector is on the right trajectory to become a major player in the global semiconductor market. While challenges remain, strategic investments and policy support will help India establish itself as a key semiconductor manufacturing hub in the coming years.