Indian Semiconductor Sector To Generate 10 Lakh Jobs In Next 5 Years
However, there may be a deficiency of 2.5 lakh to 3 lakh skilled workers by 2027
As AI usage continues to increase globally, the demand for cutting-edge semiconductors is also on the rise to cater to the increased computing requirements of AI applications. Generative AI, for example, relies heavily on computational power facilitated by semiconductors. This surge in demand is driving growth in the semiconductor sector and creating a need for skilled professionals too.
The Q4 CY2023 India GCC Trends nasscom-Zinnov report mentioned that India, the US and China collectively contribute around 50 per cent of the global semiconductor talent. In addition to these three countries, Canada, UK, France, Spain, Germany, Japan, and Taiwan emerged as the top 10 global hotspots for semiconductor talent in 2023, with a total of over 23 lakh professionals.
The Semiconductor Roles
According to a Deloitte report, the Indian semiconductor market is projected to reach USD 55 billion by 2026, a growth which will be primarily driven by smartphones, wearables, automotive components, computing and data storage. However, it is important to note that currently, India only accounts for 1 per cent of global trade in semiconductors and does not have domestic chip manufacturing capabilities, despite having a pool of talented engineers.
The semiconductor value chain comprises various essential job roles such as wafer design and R&D, design testing, wafer fabrication, QA, testing assembly and packaging, system integration and distribution.
Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship, told BW Businessworld that the Indian semiconductor industry needs skilled individuals, especially in fabrication roles. He projected a demand for around 2-3 lakh skilled workers in the next 2-3 years to fulfill the industry’s needs.
Kumar also conveyed a sense of hopefulness, stating that the semiconductor industry is expected to generate close to 10 lakh job opportunities within the next 4 to 5 years. However, he also said that his company’s internal forecasts indicate a deficiency of 2.5 lakh to 3 lakh skilled workers by 2027 throughout the entire production process, encompassing R&D, design, manufacturing, fabrication, advanced packaging and assembly-testing packaging (ATP).
Despite the enrollment of 9.8 lakh students in UG courses related to Electronics and Electrical Engineering in 2021-2022, a significant number of graduates lack the necessary expertise in specialised areas such as chip design, fabrication techniques and emerging technologies like AI and Machine Learning (ML) within the semiconductor sector, he added.
In such a scenario, implementing upskilling programmes could provide current professionals and recent graduates with essential skills, bridging the skills gap and establishing a strong talent pool. Additionally, enhancing skills in specialised areas such as advanced chip design could enable Indian companies to enhance their contributions to cutting-edge research and development, elevating the industry beyond mere chip assembly. This has the potential to position India as a key player in R&D within the global semiconductor market, Kumar stressed.
“A proficient workforce can streamline processes, enhance efficiency, and minimise errors in chip design and production. This leads to higher quality products, quicker turnaround times, improved cost-effectiveness, and enhanced capacity development” - Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship
India’s Semiconductor Sector
Over the past few years, the Indian government has been actively working towards the development of its semiconductor industry. Through various initiatives, the government has successfully attracted significant investments for indigenous semiconductor production.
“India is positioned as a promising hub in the semiconductor industry, driven by the increasing demand for advanced technologies such as low-power edge AI, IoT, and wireless connectivity. The government's strategic efforts, such as PLI and DLI initiatives, are creating opportunities for significant growth, shaping a landscape full of potential. Despite challenges related to establishing cutting-edge semiconductor manufacturing facilities due to infrastructure limitations, the emphasis on DLI, specifically the IP phase, is crucial,” said Michael Hurlston, President, and CEO, of Synaptics.
But Hurlston also pointed to the fact that while India generates significant intellectual property (IP) through design centres for multinational corporations, this IP is often owned abroad. He advocated for nurturing a startup environment in India that stresses on local innovation and IP ownership to retain economic benefits domestically.
Semiconductor Skilling Gap In India
Despite the progress in the last two years, there is a long way ahead. US-based Lam Research, a leading global provider of cutting-edge wafer fabrication equipment and services for the semiconductor industry, said that there is a significant shortage of skilled talent in the semiconductor sector in India and worldwide. To address this gap, Lam has collaborated with organisations.
The company recently entered into a MoU with the Indian Semiconductor Mission and Indian Institute of Science to address the gap and enhance the skills of the future semiconductor workforce. The CEO, Tim Archer, had previously articulated the company's objectives by stating that semiconductors are crucial in advancing technologies such as AI and electric vehicles, leading to a growing demand for nanotechnology expertise globally. “Lam Research is eager to collaborate with the Indian government to accelerate the education and training of upcoming semiconductor engineers.”
Meanwhile, Kumar from Teamlease proposed that implementing upskilling programmes could provide current professionals and recent graduates with essential skills, bridging the gap and establishing a strong talent pool. Additionally, enhancing skills in specialised areas such as advanced chip design could enable Indian companies to enhance their contributions to cutting-edge research and development, elevating the industry beyond mere chip assembly. This has the potential to position India as a key player in R&D within the global semiconductor market.
On similar lines, Synaptics’ Hurlston said it is important to implement strategic actions like thorough training programmes, partnerships with educational institutions, and efforts in research and development.
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