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| While the semiconductor manufacturing industry demands significant capital investment, it remains a highly lucrative sector worldwide. |
A recent report by Motilal Oswal underscores the pivotal role that India’s engineering talent pool can play in addressing the talent gap within the global semiconductor industry, particularly amidst the ongoing scarcity of skilled professionals. According to estimates by Semiconductor Equipment and Materials International (SEMI), approximately 1 million jobs in the semiconductor field will need to be filled by the end of this decade.
With its burgeoning capabilities and abundant workforce potential, India is strategically positioned to cater to the future demands of the global semiconductor market, as reported by news agency ANI, citing Motilal Oswal’s insights.
India’s annual production of 800,000 new engineers, coupled with its substantial proficiency in software development and design, places it in a strong position to alleviate the global talent shortage. The report emphasizes, “India, with its vast pool of engineering graduates and expertise in software and design, can significantly contribute to addressing the talent gap within the industry worldwide.”
The international semiconductor market is projected to surpass the USD 1 trillion mark by 2030, fueled by three transformative technology trends: the Internet of Things (IoT), Artificial Intelligence (AI), and the emergence of 6G, 7G, and Industry 5.0.
As reported by news agency ANI, India’s expanding capabilities and workforce potential make it well-equipped to meet the future demands of the global semiconductor industry.
According to the report, citing data from Semiconductor Equipment and Materials International (SEMI), the global semiconductor sector will face a talent deficit of approximately 1 million positions by 2030.
The report by Motilal Oswal highlights the strategic importance of India’s engineering talent in bolstering the global semiconductor industry, especially given the prevailing workforce shortage within the sector.
As per the report’s data, India’s semiconductor market has exhibited robust growth, achieving a compound annual growth rate (CAGR) of 12.6% from FY17 to FY23, reaching a value of USD 33 billion. This positive trajectory is expected to continue, with the market projected to attain a value of USD 80.3 billion by FY28, reflecting a CAGR of 19.6% during the FY23-FY28 period.
Semiconductor manufacturing, while capital-intensive, remains a highly profitable industry on a global scale. Recognizing this potential, the Indian government has undertaken various initiatives to foster the growth of domestic semiconductor manufacturing. Drawing from the successes of international leaders, India aspires to establish a robust semiconductor ecosystem.
Currently, India boasts a robust design capacity, housing 20% of the world’s design houses. These design houses are at the forefront of innovative endeavors, including the development of AI-enabled chips for diverse applications. Additional investments are being channeled into establishing fabrication (fab) facilities and outsourced semiconductor assembly and test (OSAT) centers within the country.
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