India Needs Broader Semiconductor Suppliers, Industry Expert Says

Manoj Prasad

India’s semiconductor industry is poised for significant growth, but it requires a diverse range of suppliers to achieve its full potential, according to industry experts.

The country has been actively promoting the development of its semiconductor sector through various initiatives, including the establishment of the India Semiconductor Mission (ISM) and a comprehensive package of incentives worth over $10 billion.

The ISM, which will be led by global experts in the semiconductor and display industry, aims to drive long-term strategies for developing a sustainable semiconductor and display ecosystem.

The mission will focus on providing attractive incentive support to companies and consortia engaged in the development and design of fabs, ATMP, and other semiconductor-related technologies.Industry experts emphasize that a broader range of suppliers is crucial for India to become a global hub for electronics manufacturing.

Currently, the country relies heavily on a few major suppliers, which can lead to supply chain disruptions and limit the sector’s growth potential. To address this issue, the government has introduced various schemes to encourage foreign investments and collaborations.

For instance, the Scheme for Setting Up of Semiconductor Fabs in India offers fiscal support of up to 50% of the project cost on a pari-passu basis to approved applicants.

Similarly, the Scheme for Setting Up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor ATMP / OSAT Facilities provides fiscal support of 50% of capital expenditure on a pari-passu basis.

The government has also approved the establishment of three new semiconductor manufacturing facilities, which are expected to create direct employment opportunities for 20,000 advanced technology jobs and indirect employment for about 60,000 people.

These units will focus on producing high-performance compute chips and power management chips for various sectors, including defense, automotive, and consumer electronics.

The Indian government’s efforts to boost the semiconductor sector are expected to position the country as a major player in the global electronics manufacturing landscape.

However, the industry remains cautious, recognizing that a broader range of suppliers is essential for sustained growth and self-sufficiency.

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