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India's Chip Race: Demand Fuels Growth, Tech Access Lags
19 Sep
Summary
- India leverages unmatched domestic demand and a growing workforce for semiconductor growth.
- Access to core technology remains a critical hurdle for India's semiconductor ambitions.
- Talent pipeline development runs parallel to infrastructure growth for the sector.
India possesses a distinct advantage in the global semiconductor industry, driven by unparalleled domestic consumer demand and a growing demographic dividend. A top executive from Bain & Company highlighted this unique position, noting that while other emerging markets lack such native demand, India offers a ready market for manufactured goods.
The nation's strategy, under the Semicon 2.0 program, focuses on developing a comprehensive ecosystem encompassing talent, fabs, assembly, design, equipment, and materials. This integrated approach aims to mirror successful models in Taiwan and South Korea, where entire ecosystems developed alongside manufacturing facilities.
Despite strong internal drivers, access to core technology remains a significant hurdle. Multinational corporations are urged to partner with Indian firms to transfer essential know-how. The development of a skilled workforce, from technicians to engineers, is progressing in tandem with infrastructure projects, with training initiatives underway both domestically and abroad.
Building a substantial presence in the global semiconductor supply chain will require sustained effort, mirroring the decades-long development of industries in Taiwan, South Korea, and Japan. India's policy focus should target advanced packaging and compound semiconductors, aiming to evolve into a "product nation" over the next decade.
