India's Rise as a Key Player in the Global Semiconductor Supply Chain
Synopsis
Key Takeaways
New Delhi, March 18 (NationPress) India is steadily positioning itself as a pivotal player in the global semiconductor landscape, not merely due to extensive chip manufacturing facilities, but rather because of its robust engineering talent and enhancing design expertise, according to a recent report.
Historically, nations like Taiwan and South Korea have dominated the semiconductor conversation due to their sophisticated fabrication plants, while Japan has established its reputation for excellence in materials and equipment.
In contrast, India has often been viewed as a minor participant. However, experts assert that India’s greatest asset is its human resources, particularly in chip design and engineering, as highlighted in the Directus report.
It is estimated that India comprises nearly 20% of the global workforce dedicated to integrated circuit (IC) design.
This is bolstered by a significant influx of engineering graduates each year. Major global tech companies, including Intel, NVIDIA, and Qualcomm, have established substantial research and development centers in India, employing thousands of engineers.
These teams focus on chip design, verification, and embedded systems, enabling companies to broaden their operations effectively and at reduced costs.
Although India is still in the nascent phases of developing high-end chip fabrication units, it has begun to concentrate on the mid-stages of the supply chain, incorporating assembly, testing, marking, and packaging (ATMP).
A notable instance is Micron Technology, which is investing $2.75 billion to establish a facility in Gujarat.
This strategy enables India to integrate into the semiconductor value chain more rapidly while gradually enhancing its capabilities for advanced manufacturing, as indicated in the report.
The government is also intensifying its initiatives to fortify the sector. Through the India Semiconductor Mission 2.0, authorities are working to enhance design talent, support startups, and cultivate a more resilient chip ecosystem.
A significant aspect of this initiative is the Design Linked Incentive (DLI) Scheme, which provides financial backing and access to necessary tools and infrastructure for chip design and development.
International firms are increasingly confident in India's policy trajectory.
Powerchip Semiconductor Manufacturing Corporation from Taiwan has teamed up with Tata Electronics to construct the country’s inaugural commercial wafer fabrication plant in Gujarat, representing an investment of approximately $11 billion.