India set to play big role in cracking semiconductor talent puzzle, says new report

While semiconductor manufacturing demands significant investment, it remains a profitable industry globally.

The recent report by Motilal Oswal has highlighted the crucial role India's engineering talent could play in the global semiconductor industry, especially given the current shortage of skilled workers. The Semiconductor Equipment and Materials International (SEMI) estimates that around 1 million positions will need to be filled in the semiconductor sector by 2030.

Equipment and Materials International (SEMI) estimates that around 1 million positions will need to be filled in the semiconductor sector by 2030.

India's expanding capabilities and workforce potential position it well to meet future global semiconductor demands, news agency ANI reported citing Motilal Oswal's findings.

India produces 800,000 new engineers each year and has significant expertise in software development and design. The report points out, "India, which produces 800k fresh engineers annually and has expertise in software development and design, can play a significant role in addressing the talent shortage globally."

The global semiconductor market is projected to reach USD 1 trillion by 2030. The demand for semiconductors is driven by three key technology waves: Internet of Things (IoT), Artificial Intelligence (AI), and the future technologies of 6G, 7G, and Industry 5.0.

India's expanding capabilities and workforce potential position it well to meet future global semiconductor demands, news agency ANI reported cited.

The report stated that as per the Semiconductor Equipment and Materials International (SEMI), the global semiconductor industry will need to fill around 1 million positions by 2030.

India's engineering talent is poised to play a crucial role in the global semiconductor industry, especially as the sector faces a significant workforce shortage, according to a report by Motilal Oswal.

As per the report data, Idia's semiconductor market has demonstrated strong growth, with a compound annual growth rate (CAGR) of 12.6 percent from FY17 to FY23, reaching USD 33 billion. The report forecasts this growth to continue, with the market expected to reach USD 80.3 billion by FY28, reflecting a CAGR of 19.6 percent during the FY23-FY28 period.

While semiconductor manufacturing is capital-intensive, it remains a highly profitable industry globally. Recognizing this potential, the Indian government has taken various initiatives to boost domestic semiconductor manufacturing. Learning from the experience of global leaders, India aims to build a strong semiconductor ecosystem.

Currently, India is rich in design capacity, with 20 percent of the world's design houses located in the country. These design houses are involved in cutting-edge work, such as designing AI-enabled chips used in a wide range of applications. Further investments are being made in establishing fabrication (fab) and outsourced semiconductor assembly and test (OSAT) facilities in the country.