India, traditionally known for its expertise in software and services, is now making strides in an area crucial to the future of technology semiconductors. As global demand for advanced chips continues to grow, India is gearing up to become a key player in the semiconductor industry. In this blog, we’ll explore India’s semiconductor journey, the challenges faced, and the opportunities that lie ahead for the country in this high-tech domain.
1. The Global Semiconductors Landscape
Semiconductors are at the heart of virtually every electronic device from smartphones and computers to automobiles and medical devices. As the backbone of modern technology, the semiconductor industry is a trillion-dollar market, with countries like the United States, South Korea, Taiwan, and China dominating the supply chain.
For India, the semiconductor industry presents a tremendous opportunity. Despite being a major hub for software development, India has long been dependent on imports for semiconductors. However, recent developments signal a shift as the country takes significant steps toward manufacturing and designing its own chips.
2. Semiconductors Initiative in India
Indian government has recognized the strategic importance of semiconductors and is working on plans to bolster the industry through various initiatives:
Production Linked Incentive (PLI) Scheme: In 2021, the Indian government introduced the PLI scheme to incentivize domestic semiconductor manufacturing. The scheme provides financial incentives to global and local players to set up semiconductor fabs (fabrication units) and display manufacturing units in India.
National Policy on Electronics (NPE): The government has laid out the vision to increase India’s share in the global electronics market and develop an ecosystem conducive to semiconductor manucturing.