As SEMICON India 2024 approaches, SEMI CEO Ajit Manocha has called on India to invest in building more semiconductor fabs. With global investors increasingly interested in India, Manocha emphasizes the need to enhance the country's semiconductor supply chain resilience to meet rising demand.
SEMI, in partnership with Messe Muenchen India, the Ministry of Electronics & Information Technology (MeitY), the India Semiconductor Mission, and Digital India, will host the inaugural SEMICON India 2024 from September 11-13 in the Delhi-NCR region.
The event will bring together global semiconductor industry experts and major players, including Applied Materials, Cadence, CG Power, KLA, Lam Research, Micron, NXP, Renesas, TATA Electronics, and Tokyo Electron.
According to PTI, the Economic Times, and Business Standard, Manocha announced at a SEMICON India 2024 preview event that India will need 10-20 semiconductor fabs over the next decade to meet growing demand.
Manocha highlighted the increasing interest in India's semiconductor sector, noting the success of companies like Foxconn and Wistron. He emphasized that while the amount of fabs needed is an estimate, the growth potential is significant.
Manocha also pointed to the rise of OSAT and ATMP units in India as positive developments and urged all stakeholders to support the success of recent initiatives by Tata, Micron, and others to attract more major companies to the country.
Manocha praised the Indian government's clear and supportive policies for the semiconductor ecosystem, noting that geopolitical factors and investment capacities are also favorable for India. He highlighted that SEMICON India will feature over 650 booths with more than 250 semiconductor companies exhibiting and added that space limitations prevented accommodating additional companies.
Industry estimates project the Indian semiconductor market will surpass US$100 billion and create over 600,000 jobs by 2030. Meanwhile, a McKinsey & Company report forecasts the global semiconductor market will reach US$1 trillion by the same year.
Manocha highlighted that India's abundant raw talent can play a crucial role in meeting domestic and global semiconductor industry goals. He noted that while there is a talent shortage globally, India's pool of untapped talent offers significant opportunities for companies to train and employ skilled professionals, attracting more firms to invest in the country.
Expert outlines key factors and challenges for India's semiconductor sector
As Taiwanese companies increase their investments in India, Business Standard reported that Kristy Hsu, director of the Taiwan ASEAN Studies Center, outlined five crucial factors Taiwanese companies consider when investing: local customer support, infrastructure quality, supply chain strength, government policy support, and talent availability.
Speaking at the Ashwamedh Elara India Dialogue 2024 in Mumbai, Hsu emphasized that a single partnership, such as Tata's with PSMC, is insufficient. India must build relationships with a wider array of key suppliers and business partners.
Hsu also noted challenges in India's semiconductor sector, including difficulties in attracting talent trained abroad, who often prefer to stay overseas. Additionally, India's semiconductor industry struggles with an underdeveloped local supply chain, which could lead to reliance on imports, increasing costs and logistical issues. Local customer support is another hurdle, as Indian companies' price sensitivity might affect their willingness to source domestically produced chips.
According to the Economic Times, Ashwini Vaishnaw, Minister of Electronics and IT of India, expects the first made-in-India chips to be produced by 2025. He said India also emphasizes talent development through partnerships with universities and has signed MoUs with international entities from the US, Japan, and the EU to introduce expertise and innovation. Furthermore, Vaishnaw added that 13 companies are engaged in chip design.
