India's Engineering Prowess Poised to Propel Global Semiconductor Industry

India's engineering talent could significantly impact the global semiconductor market, helping alleviate a labor shortage in the expanding industry. The market is expected to need 1 million positions by 2030, and India, producing 800k engineers annually, is well-positioned to meet this demand. The global market is headed toward a trillion-dollar valuation.

India's engineering prowess is set to play a pivotal role in the global semiconductor industry amid a looming labor shortage, according to a report by Motilal Oswal. The Semiconductor Equipment and Materials International (SEMI) forecasts the need to fill approximately 1 million jobs in the sector by 2030.

The report highlights that India, which produces 800,000 newly minted engineers every year and boasts significant expertise in software development and design, is strategically positioned to help bridge the global talent gap. Moreover, the worldwide semiconductor market is on track to reach a valuation of USD 1 trillion by the end of the decade. This surge in demand is fueled by three major waves: the first wave is led by the Internet of Things (IoT), cloud, and Industry 4.0 transitions; the second by artificial intelligence (AI); and the third wave focuses on 6G/7G technologies, quantum advancements, and Industry 5.0 adoption.

In India, the semiconductor market has experienced impressive growth, with a compound annual growth rate (CAGR) of 12.6 per cent from FY17 to FY23, culminating in a market size of USD 33 billion. This growth is expected to accelerate, with projections estimating a market size of USD 80.3 billion by FY28, reflecting a CAGR of 19.6 per cent from FY23 to FY28. Despite the capital-intensive nature of semiconductor manufacturing, the sector remains globally lucrative. The Indian government is capitalizing on this potential by initiating various efforts to enhance domestic production capabilities.

Drawing insights from global leaders, India is striving to establish a robust semiconductor ecosystem. Currently, the nation boasts significant design capacity, accounting for 20 per cent of the world's design houses engaged in advanced projects, including AI-enabled chip designs. Efforts are ongoing to build fabrication (fab) and outsourced semiconductor assembly and test (OSAT) facilities in the country.

India's expanding capabilities and formidable workforce potential strategically position it to contribute significantly to the global semiconductor landscape, meeting future market demands. (ANI)

(With inputs from agencies.)