New Delhi: In a significant boost to India’s semiconductor ecosystem, the government has invested over Rs 2,859 crore in semiconductor research and development (R&D) and more than Rs 298 crore in skill development and capacity building in the last decade.
Accelerating Innovation in Semiconductor R&D
India has emerged as a global leader in the semiconductor design workforce, driven by substantial investments in R&D. As per data shared by the Minister of State for Electronics and IT, Jitin Prasada, in the Lok Sabha, the annual expenditure on semiconductor R&D has steadily increased over the years, peaking at Rs 502.04 crore in 2021-22. This sustained effort has enabled India to establish itself as a key player in the global semiconductor value chain.
MeitY supports a wide range of R&D initiatives, including projects on nanotechnology, semiconductor materials, chip design, and semiconductor IP cores. These efforts are part of a broader strategy to build a self-reliant and globally competitive semiconductor ecosystem.
Investing in Talent
The government has also emphasized developing a skilled workforce to support its semiconductor ambitions. Initiatives such as the Special Manpower Development Programme for Chips to System Design (SMDP-C2SD), the Indian Nanoelectronics User Programme (INUP), and the Chips to Startup (C2S) Programme have played a pivotal role in nurturing talent.
According to the SemiconIndia Future Skills Talent Committee report, India had approximately 1.25 lakh semiconductor design engineers in 2022. Additionally, a report by the Semiconductor Industry Association (SIA) and Boston Consulting Group (BCG) estimates that Indian engineers constitute 19% of the global semiconductor design workforce. India is also home to 7% of the world’s chip design facilities, underscoring its growing prominence in the industry.
Strengthening the Ecosystem
The government has launched the Modified Programme for Semiconductors and Display Fab Ecosystem with an outlay of Rs 76,000 crore to foster semiconductor and display manufacturing. Of this, 2.5% is allocated for R&D and skill development. The Design Linked Incentive Scheme, with a Rs 1,000 crore budget, further supports fabless chip design startups and R&D activities.
Year-wise data on skill development spending reveals a renewed focus since 2022, with Rs 69.84 crore allocated so far in 2024-25 alone. Such initiatives aim to address workforce gaps and prepare the next generation of engineers for emerging challenges in semiconductor technology.
India’s efforts in semiconductor R&D and skill development have placed the country on the global map as a hub for innovation and talent. By combining robust investments in infrastructure, workforce training, and policy incentives, the government is paving the way for India to become a leader in the semiconductor industry.
