Meeting Challenges and Scaling Growth with Semiconductors

Ashok Chandak, President, IESA on manufacturing of semiconductors in India and the challenges associated with it

- DR ARCHANA VERMA

Where does the manufacturing and meeting the demand of semiconductors in India stand today?

India is on an ambitious journey to become a global leader in the semiconductor industry. The government has approved a major investment, including a state-of-the-art semiconductor fabrication plant, which will break ground this year. This plant is a joint venture between Powerchip Semiconductor and Tata Electronics, capable of producing chips at 28 and above nanometer technology nodes. Additionally, several more proposals are in consideration at MeitY from International Semiconductor Consortiums.

India’s drive for semiconductor self-reliance is part of a broader vision to reduce dependence on imports and establish domestic manufacturing capabilities. The Production Linked Incentive (PLI) scheme for electronics manufacturing is one such policy aimed at boosting domestic production. The semiconductor consumption in India is growing at a rate of 15% annually, which indicates the critical need for increased domestic production to meet the rising demand.

What are the challenges in this direction and how does IESA plan to meet these challenges?

The semiconductor industry in India faces several challenges, but with strategic planning and support, these can be addressed. Some of the key challenges that the industry faces are as follows –

Infrastructure – Establishing semiconductor fabrication facilities requires significant space, a reliable water supply, and uninterrupted power.

Skilled workforce – There is a need for highly skilled engineers and researchers in the semiconductor industry.

Supply chain – A robust supply chain is vital for semiconductor manufacturing with regards to materials, chemicals, gases and other value chain intermediaries.