In an interview with BW Businessworld, Ajit Manocha, SEMI President and CEO, and former GlobalFoundries CEO discusses strategies for upskilling Indians in semiconductors, the importance of connecting various semiconductor initiatives in India and the emerging market opportunities in the industry. Excerpts:
In your speech yesterday during SEMICON India’s inaugural session, in presence of Prime Minister Modi, you described India’s efforts as ‘unprecedented’ in the semiconductor space. What are the key drivers of this belief that you seem to have in India’s efforts?
From my corporate experience, entering a new country with a semiconductor fab is always a challenge—no one is eager to jump in right away. When I set up a fab in Madrid with AT&T Bell Labs, it was incredibly difficult. Now, looking at India, first of the major announcements came from Micron, followed by Tata. I predicted in 2022 and 2023 that these moves would serve as catalysts for others to follow.
What sets India apart now is the government’s clear and compelling vision under Prime Minister Modi, along with unprecedented policies, like offering 70-75 per cent subsidies. Having five manufacturing unit announcements in just two years is unheard of. SEMI has been in countries like Taiwan, China and South Korea, where industries started small but became powerhouses. The first SEMICON event in India, however, is already five times bigger in scale and scope than those initial efforts, making it truly unprecedented.
In previous interactions with the media, you mentioned that the country would need around 10 to 20 fabs. Given that the government’s approvals so far, what efforts do you think are needed to reach that larger goal and attract more investments in semiconductor fabs?
I mentioned that for the industry to keep up with the USD 1 trillion journey, we’re currently at USD 0.5 trillion in IC revenue, which took 70 years to reach. Now, in the next 7-8 years, that will double to USD 1 trillion. As of today, more than 80 fabs are under construction worldwide, with just one in India. Even if all 80 fabs are up and running by 2027, we still won’t reach USD 1 trillion in revenue. Between 2027 and 2030, we’ll need about 50-60 more fabs to hit that target.
So, my message is: out of those 50 new fabs yet to be announced, what market share does India want? I think India should go after a big chunk of that, maybe more. But the key question is, does India have the appetite for this? And from Prime Minister Modi’s vision, it’s very clear: this is a journey for the long term, not just a short-term sprint.
“Between 2027 and 2030, we’ll (the world will) need about 50-60 more fabs to hit $1 trillion target. So, my message is: out of those 50 new fabs yet to be announced, what market share does India want? I think India should go after a big chunk of that.”
Industry feedback suggests that growth in India will also come from semiconductor-adjacent industries. What are the potential growth areas you see, and how can India tap into them?
The automotive industry is becoming heavily reliant on semiconductors—cars today are essentially semiconductors on wheels. Electric vehicles, like Tesla, are made up of chips, sensors, cameras and a motor.
In addition to automotive, there’s a huge growth in the medical industry, where semiconductors are increasingly converging with medical technology. Soon, semiconductors may even be embedded in humans. Devices like mobile phones, digital watches and wearables already carry multiple semiconductor chips. Another key growth area is data centres, as we continue to evolve into a data-driven economy. With rising connectivity, data centres will play a pivotal role. Each state should focus on its strengths and passions to capitalise on these opportunities.
Predicting the future can be challenging, but how do you see India playing a larger role in the global semiconductor supply chain in the near, medium and long term?
India definitely needs to become a trusted partner in the global supply chain, and it certainly can, but the question is how long it will take. It depends on how quickly we develop the ecosystem and attract more manufacturing units. With 1.4 billion people, India is a huge market and a blessing, making it a key player that the world will look to for growth. This will push us to become a trusted supply chain partner. We are on track, but the timeline depends on how well we execute. We need to execute very well and ensure the success of every new manufacturing unit and ecosystem company coming to India.
At a recent industry forum, there was a view that workforce development in India needs to scale up by a factor of 10. What do you see as the current gaps, and what could be done better compared to what's already happening? Many universities and companies are collaborating, but what additional steps could improve this situation?
I agree there are gaps that need addressing and SEMI has a role to play. My observation is that India has multiple initiatives across various states. What’s needed is to connect these initiatives in a coordinated fashion to avoid duplication and accelerate progress. SEMI can assist in this process. In the US, we created the American Semiconductor Academy (ASA), a network of over 250 universities and community colleges with semiconductor curricula. Similarly, I am working with IITs and other universities to establish the India Semiconductor Academy (ISA). My message to the government is that while SEMI can help, there needs to be a central coordination to connect all efforts. This will ensure that investments are effectively focused on both immediate needs and long-term goals, preparing the workforce as new manufacturing units come online.
