Semiconductors are the backbone of modern technology, powering everything from smartphones to satellites and forming the foundation of the digital age. As the demand for semiconductor technology continues to grow globally, India, with its growing technology sector, is poised to become a significant player in the semiconductor industry. Leveraging its vast talent pool, rich resources and favorable policies, India aims to transform its semiconductor landscape and emerge as a global hub for electronics manufacturing and design.
The primary objective of the webinar was to demonstrate India's commitment to becoming a global hub for semiconductor, display manufacturing and design. The event provided a comprehensive overview of the current electronics and semiconductor market opportunities in India, outlined various government schemes and discussed the roadmap for building a sustainable semiconductor ecosystem. Additionally, it presents a great opportunity to learn from the established semiconductor ecosystem in Penang, which can be instrumental to our initiatives.
H.E.B N Reddy, Indian High Commissioner to Malaysia, Mr. Sushil Pal, Joint Secretary, Ministry of Electronics & Information Technology, Mr. Vinod Subramaniam, #InvestIndia highlighted opportunities for synergy in the sector.
Mr. Andrew Chan, Director, #MSIA spoke about the potential of a beneficial partnership. Mr. Arush, Invest India gave a detailed presentation to Malaysian businesses about the various schemes and support from the Government of India and State Governments for Malaysian businesses looking to expand in 🇮🇳.
More than 60 Malaysian companies participated, including Micron Malaysia, GSH Precision Group, Infenix Berhad, Vitrox Berhad and others, which have expressed interest in joining India's electronics and semiconductor manufacturing.
Semiconductors are the backbone of modern technology, powering everything from smartphones to satellites and forming the foundation of the digital age. As the demand for semiconductor technology continues to grow globally, India, with its growing technology sector, is poised to become a significant player in the semiconductor industry. Leveraging its vast talent pool, rich resources and favorable policies, India aims to transform its semiconductor landscape and emerge as a global hub for electronics manufacturing and design.
Integration of India in semiconductor design and research
India is increasingly recognized for its capabilities in semiconductor design and research. The country has seen a significant increase in the number of startups and R&D centers dedicated to semiconductor innovation. The boom is fueled by India's strong education system, which produces a significant number of engineering graduates annually, and supportive government policies to nurture indigenous technology.
The semiconductor industry in India is expected to create about 1 million jobs in the next 4-5 years. This projection underscores the sector's potential to provide not only economic growth but also high-skilled employment opportunities. The influx of startups in the semiconductor space further highlights the entrepreneurial spirit and innovation that is taking root in the country.
Increase in budget allocation
Union Budget 2024 is a pivotal moment for India's semiconductor ambitions. The allocation for the scheme to support semiconductor and display manufacturing was increased by 130 percent, reaching INR 690.3 million (US$83.28 million). This significant budgetary increase reflects the government's commitment to promote the semiconductor industry and reduce dependence on imports.
Semiconductor Manufacturing Fund
In 2003, India introduced a $10 billion Semiconductor Manufacturing Fund. The objective of the fund is to promote investment in semiconductor fabrication units, which address a critical bottleneck in the country's semiconductor ecosystem. By providing financial support, the government hopes to attract global semiconductor manufacturers to set up fabrication units in India, thereby increasing domestic manufacturing capacity.
International Collaborations
International cooperation has also played an important role in India's semiconductor strategy. The India US Semiconductor Initiative, for example, aims to enhance technology transfer and skill development. Such partnerships are critical to bring advanced semiconductor technology to India and enhance collaboration for innovation.
National Policy on Electronics 2019
India's National Policy on Electronics 2010 outlines a comprehensive framework to promote domestic manufacturing and reduce import dependency in the semiconductor sector. The policy emphasizes the development of a strong supply chain, encouraging semiconductor manufacturing and creating an enabling environment.
India Semiconductor Mission
The India Semiconductor Mission launched as part of the Semicon India program is strategic to build a robust semiconductor and display ecosystem. With a financial outlay of INR 74,000 crore allocated in 2021, the mission aims to position India as a global hub for electronics manufacturing and design. The mission includes various aspects including infrastructure development, skill enhancement and accelerating innovations in the semiconductor space.
India's New Semiconductor Plants
In a landmark move, the Government of India approved the setting up of three new semiconductor manufacturing facilities on February 29, 2004. These facilities are set to significantly boost India's semiconductor manufacturing capabilities and create significant employment opportunities.
Semiconductor fab at Dholera, Gujarat
India's first commercial semiconductor fabrication facility is located at Dholera in Gujarat, with a capacity of 50,000 units per month. This facility is a major milestone in India's journey towards becoming a self-sufficient semiconductor manufacturing hub.
ATM Unit at Morigaon, Assam
An Assembly, Test, Marking and Packaging (ATMP) unit will be set up at Morgan Assam. The unit will play a key role in the semiconductor supply chain, providing essential services critical to the first stage of semiconductor manufacturing.
Exclusive ATM Unit Sanand, Gujarat
Another ATMP unit focusing on specialty chips will be set up in Sanand Gujarat. The unit will cater to the growing demand for advanced semiconductor components required in various hi-tech applications.
These units are expected to create direct employment for 20,000 advanced technology jobs and approximately BDDDD indirect jobs contributing significantly to local economies and the broader national economy.
Market Overview
The global semiconductor market was analyzed at USD 544.78 billion in 2023 and is projected to reach USD 1,137.57 billion by 2033, growing at a compound annual growth rate (CAGR) of 7.64% from 2024 to 2033. The Asia Pacific region currently holds the largest market share. , driven by significant investments in semiconductor manufacturing and a strong consumer electronics market. Meanwhile, North America and Europe are identified as the fastest growing markets, driven by advancements in technologies such as artificial intelligence, Internet of Things (7) and autonomous vehicles.
Market segmentation
The semiconductor market is segmented on the basis of component, application, and region. Those components include pislargosevoga, memory devices and sensors, while applications span the consumer electronics, automotive industrial and healthcare sectors. Regional analysis suggests that while Asia Pacific remains dominant, North America and Europe have significant growth opportunities due to increasing technology adoption and supportive empowerment policies.
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