India's Semiconductor Surge: Emerging as a Global Powerhouse

India is rapidly establishing itself in the global semiconductor arena, with its market projected to triple by 2032. Bolstered by domestic policies, exports, and a burgeoning workforce, the nation aims to bridge its import-export gap and expand its role in the global supply chain.

India is carving a significant niche in the global semiconductor industry, traditionally dominated by the Asia-Pacific region. With the nation's semiconductor market currently valued at USD 34.3 billion, forecasts suggest a staggering rise to USD 100.2 billion by 2032. A Union Bank of India report indicates the global semiconductor industry is on a robust growth trajectory, anticipated to reach USD 1 trillion by 2030.

India's presence in the global supply chain has become more pronounced. In 2022, the country exported semiconductor devices worth USD 516 million, predominantly to the US, Hong Kong, and South Africa, though imports from China, Singapore, and Vietnam far exceeded this figure at USD 4.55 billion. The telecom and industrial sectors, powered by the advent of 5G, AI, and electric vehicles, underpin this demand.

To bolster this growth, India has launched the Semiconductor Mission, budgeting USD 10 billion to nurture a self-sustaining semiconductor ecosystem. Incentives cover 50% of project costs for fabs and assistance for various semiconductor facilities, with a design-linked program to support domestic companies. Additionally, training initiatives aim to produce 85,000 skilled semiconductor engineers.

Indian states are playing a pivotal role, with Gujarat, Tamil Nadu, Uttar Pradesh, and others launching semiconductor-specific policies. At a national level, the expansion is supported by strategies such as the production-linked incentive scheme, 'Make in India,' and the Semicon India program, propelling the nation towards self-sufficiency in chip production.

Impressively, Indian engineers constitute 20% of the global workforce in semiconductor design, with over 100,000 VLSI professionals working with international and domestic entities, highlighting India's capacity to enhance its stake in the global semiconductor value chain. (ANI).

(With inputs from agencies.)