As the Union Budget is set to be tabled on 1st February 2025, the Finance Ministry highlighted the role of key government initiatives that have advanced the growth of the semiconductor industry in India. With initiatives like the Semicon India Programme and the Production-Linked Incentive (PLI) scheme, India has not only attracted investments worth Rs 1.52 lakh crore but also paved the way for significant job creation, including 25,000 advanced technology roles and 60,000 indirect jobs in the semiconductor sector. As the budget approaches, the focus on accelerating advancements in this critical sector highlights its pivotal role in shaping India’s economic and technological future.Â
Expert’s Opinion:
In this context, Anannya Saraswat of APAC News Network and CXO News brings forward the insights shared by Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship. He shares his thoughts on the key areas of skilling that the government needs to focus on to further boost the semiconductor industry in India.
Factors Driving the Rapid Growth of the Semiconductor Industry in India
India’s semiconductor sector is poised for transformative growth, driven by increasing domestic demand for electronics, the rapid adoption of emerging technologies like AI, IoT, and 5G, and significant government initiatives such as the Rs 76,000-crore semiconductor incentive scheme. Key projects, including Tata Electronics’ fabrication units and strategic partnerships with global leaders like Taiwan’s PSMC, are establishing a strong foundation for a thriving ecosystem.Â
However, this growth underscores the critical need for a highly skilled workforce to meet the demands of advanced chip design, manufacturing, and packaging technologies. Addressing the current skills gap requires focused skilling initiatives, industry-academia collaborations, and robust apprenticeship programs to build a future-ready talent pipeline.
Critical Skills in Short Supply and its Impact
India’s rapid rise as a global semiconductor manufacturing hub, driven by initiatives like ‘Make in India’ and the production-linked incentive (PLI) scheme, underscores the critical need for hands-on training to build a skilled workforce for this high-tech sector. While India has traditionally focused on packaging and manufacturing, it is now expanding its capabilities in semiconductor design and intellectual property development, essential for achieving self-reliance and enhancing its contribution to the global supply chain. However, the semiconductor industry faces an acute skills gap of 320,000 to 350,000 professionals across specialized roles such as VLSI design, chip fabrication, advanced packaging, and ATMP processes. With investments exceeding INR 1.5 trillion and a projected market value of $100 billion by 2030, addressing this gap is imperative.
Key roles like Semiconductor Process Engineers, Cleanroom Technicians, and Lithography Engineers demand advanced technical expertise that cannot be acquired solely through theoretical education. Experiential learning models, including apprenticeships, managed training services, and work-integrated learning programs, are essential to bridge this gap. These models combine academic learning with practical experience, equipping professionals with job-ready skills while staying aligned with evolving technologies like AI, IoT, and 5G. Apprenticeships are particularly impactful in preparing talent for critical roles in packaging and manufacturing, while industry-academia collaborations ensure that training remains aligned with industry demands. By prioritizing experiential learning, India is addressing its immediate talent needs while building a sustainable pipeline of skilled professionals to support long-term growth and innovation, solidifying its position in the global semiconductor supply chain.
Government Measures Needed for Semiconductor Skilling
To effectively meet the semiconductor industry’s growing demands and capitalize on the projected 25% increase in skilling investments over the next 2-3 years, we recommend surpassing the current 50% target for reskilling and upskilling the existing workforce. Large-scale reskilling efforts must prioritize advanced competencies in semiconductor design, chip fabrication, wafer processing, and advanced packaging—skills that are increasingly critical amid rapid advancements in AI, IoT, and 5G technologies. Apprenticeships and work-integrated learning programs are central to this transformation, bridging the gap between academic learning and practical industry requirements. These models integrate hands-on training with theoretical instruction, allowing workers to gain real-world experience in high-demand roles such as VLSI design and chip manufacturing. Additionally, they foster collaboration between industry leaders and educational institutions, ensuring that training remains relevant to evolving technological needs. By exceeding current skilling targets, combining apprenticeships with reskilling initiatives, and adopting a coordinated approach involving government, industry, and academia, India can address the immediate workforce shortfall while building a sustainable talent pipeline to drive long-term growth and innovation in the semiconductor sector.
Role of Emerging Tech in the Semiconductor Industry
AI and Machine Learning (ML) are transforming the semiconductor industry by driving innovation in chip design, defect detection, and production efficiency. AI algorithms enable the development of smarter, energy-efficient chips tailored for advanced technologies like AI, IoT, and 5G, while ML techniques are revolutionizing manufacturing through predictive maintenance, process automation, and real-time analytics, improving yield rates and reducing downtime. With India’s semiconductor consumption projected to reach $110 billion by 2030, the demand for roles involving AI-driven semiconductor design, data analytics, and smart manufacturing is set to grow significantly.Â
Expertise in areas such as hardware-software co-design to optimize chip performance, automated defect detection systems to enhance quality, and precision assembly techniques like smart chip design and wafer-level packaging will become critical. Additionally, AI-driven process optimization will advance semiconductor fabrication by enhancing energy efficiency and enabling customized solutions for emerging applications. To capitalize on this opportunity, India must focus on building a skilled workforce through targeted training programs, apprenticeships, and industry-academia partnerships, fostering expertise in AI and ML applications specific to semiconductor manufacturing. By doing so, India can not only address the immediate skills gap but also strengthen its manufacturing capabilities, secure a leading position in the global semiconductor value chain, and drive sustained growth and competitiveness in this high-tech sector.
