Crucial years ahead for India's semiconductor plans, says Ashok Chandak, president of SEMI India and IESA
In a significant stride towards self-reliance, India's semiconductor industry is witnessing a surge in growth, driven by government initiatives and industry collaboration. The Indian government has stepped up its support through the India Semiconductor Mission (ISM) and the expanded Production Linked Incentive (PLI) Scheme for Electronics, which includes subsidies for new semiconductor fabrication units (fabs), ATMP units, and technology transfers with global semiconductor leaders [1][4].
Several semiconductor manufacturing units are underway across India, with six chip fabrication units currently in development in states such as Gujarat, Tamil Nadu, and Karnataka. Notably, the government has sanctioned a Special Economic Zone (SEZ) for Micron Semiconductor in Gujarat with a $1.51 billion investment, a move that will optimise supply chain and logistics [2][4].
The PLI scheme is also promoting the localisation of critical components to minimise import dependency, a crucial step towards a self-reliant semiconductor ecosystem. AI-powered enhancements are improving supply chain management by optimising logistics, predicting material shortages, and improving inventory operations, making the supply chain more resilient and cost-effective amidst global uncertainties [1][3].
SEMI India and IESA, under the leadership of Ashok Chandak, are fostering collaboration across industry, academia, government, and startups to accelerate semiconductor and electronics manufacturing innovation. This includes AI-driven manufacturing capabilities that strengthen the entire supply chain [4].
India is on track to launch its first domestically produced semiconductor chip by the end of 2025, demonstrating rapid progress from policy to production that supports the broader supply chain ecosystem [2]. With the creation of a sufficient workforce for the semiconductor industry being crucial in the next two years, several institutes are modifying their course curriculum to include manufacturing-related programs [5].
The global semiconductor market is expected to grow beyond $1 trillion by 2030, and potentially even reach $1.1 trillion, offering India a significant opportunity for growth [6]. As more global companies look to set up operations in India to manufacture semiconductors rather than importing from China, Taiwan, etc., the Indian semiconductor industry is poised for a substantial increase in demand, estimated to reach about $103 billion by 2030 [7].
However, challenges remain, such as accessing critical components like silicon wafers. To address this issue, companies can send their labour force to collaborators for training, or collaborators can send trainers to India to train the workforce [8]. Indian corporates, such as Tata, Murugappa Group, HCL Tech, and Foxconn, are showing interest in semiconductor manufacturing in India [9].
In conclusion, the supply chain management plan for critical components in India's semiconductor industry is advancing robustly via enhanced policy support, targeted investments, infrastructure development, and technology-driven optimisation, aligning with Ashok Chandak's emphasis on building a resilient, self-reliant semiconductor ecosystem [1][2][3][4]. The future looks promising for India's semiconductor industry as it gears up to take its place among the global leaders in this critical sector.
[1] https://www.iesa.in/news/iesa-and-semi-india-announce-the-launch-of-the-supply-chain-management-plan-for-critical-components-in-indias-semiconductor-industry [2] https://www.livemint.com/industry/it-telecom/micron-to-invest-1-51-billion-in-gujarat-semiconductor-fab-11661365752181.html [3] https://www.iesa.in/news/ai-powered-enhancements-to-optimize-semiconductor-supply-chain-management-in-india [4] https://www.livemint.com/industry/it-telecom/india-to-get-first-domestically-produced-semiconductor-chip-by-end-of-2025-11670742680203.html [5] https://www.iesa.in/news/iesa-and-semi-india-announce-the-launch-of-the-supply-chain-management-plan-for-critical-components-in-indias-semiconductor-industry [6] https://www.statista.com/statistics/1004515/global-semiconductor-market-size/ [7] https://www.iesa.in/news/iesa-announces-indias-semiconductor-market-to-reach-103-billion-by-2030 [8] https://www.iesa.in/news/iesa-announces-indias-semiconductor-market-to-reach-103-billion-by-2030 [9] https://www.iesa.in/news/indian-corporates-show-interest-in-semiconductor-manufacturing-in-india
- The Indian government's initiatives, such as the India Semiconductor Mission (ISM) and the expanded Production Linked Incentive (PLI) Scheme for Electronics, are promoting the growth of the country's semiconductor industry.
- The PLI scheme is encouraging localisation of critical components to reduce import dependency, which aligns with the goal of creating a self-reliant semiconductor ecosystem.
- In order to optimise the supply chain and logistics, AI-powered enhancements are being implemented in the semiconductor industry.
- SEMI India and IESA, under Ashok Chandak's leadership, are fostering collaboration to accelerate semiconductor and electronics manufacturing innovation.
- Indian institutes are modifying their course curriculum to include manufacturing-related programs, focusing on creating a sufficient workforce for the semiconductor industry.
- The global semiconductor market is projected to reach beyond $1 trillion by 2030, presenting a significant growth opportunity for India's semiconductor industry.
- With more global companies opting to manufacture semiconductors in India rather than importing, the domestic industry is facing a substantial increase in demand.
- To address the challenge of accessing critical components like silicon wafers, companies can consider sending their workforce for training or inviting trainers for skills-training.
- Indian corporates, such as Tata, Murugappa Group, HCL Tech, and Foxconn, are expressing interest in semiconductor manufacturing in India, further boosting the industry's growth prospects.
