India’s Role in the Global Semiconductor Industry
India is set to play a vital role in the global semiconductor industry, which is facing a significant workforce shortage. According to a report by Motilal Oswal, the Semiconductor Equipment and Materials International (SEMI) predicts that the industry will need to fill around 1 million positions by 2030.
India’s Engineering Talent
India produces 800,000 new engineers each year and has strong expertise in software development and design. This positions the country to help address the global talent shortage in the semiconductor sector.
Market Growth
The global semiconductor market is expected to reach USD 1 trillion by 2030. The demand is driven by three waves: the first wave led by IoT and industry 4.0, the second by AI, and the third by 6G/7G and Industry 5.0.
India’s Semiconductor Market
India’s semiconductor market has grown significantly, with a compound annual growth rate (CAGR) of 12.6% from FY17 to FY23, reaching USD 33 billion. It is projected to grow to USD 80.3 billion by FY28, with a CAGR of 19.6% during FY23-FY28.
Government Initiatives
The Indian government is taking steps to boost domestic semiconductor manufacturing, learning from global leaders to build a strong ecosystem. India is rich in design capacity, with 20% of the world’s design houses located in the country, working on advanced projects like AI-enabled chips.
Future Prospects
With ongoing investments in fabrication and assembly facilities, India’s growing capabilities and workforce potential make it well-positioned to contribute significantly to the global semiconductor industry.
Doubts Revealed
Semiconductor -: Semiconductors are materials that can conduct electricity under certain conditions, making them essential for electronic devices like computers and smartphones.
Workforce Shortage -: A workforce shortage means there are not enough people available to work in a particular industry, like the semiconductor industry, which needs more skilled workers.
IoT -: IoT stands for Internet of Things, which refers to devices connected to the internet, like smart home gadgets, that can communicate with each other.
AI -: AI stands for Artificial Intelligence, which is the ability of machines to perform tasks that usually require human intelligence, like understanding language or recognizing images.
6G/7G -: 6G and 7G refer to future generations of mobile network technology that will be faster and more efficient than the current 5G networks.
USD -: USD stands for United States Dollar, which is a currency used to measure the value of goods and services globally.
FY23 -: FY23 stands for Fiscal Year 2023, which is a one-year period used for accounting and budgeting purposes, starting in 2022 and ending in 2023.
Domestic Manufacturing -: Domestic manufacturing means producing goods within a country’s own borders, which helps boost the local economy and create jobs.