In just 18 months, India made significant progress in semiconductors, aiming to nurture 100 design startups by 2024. To aid growth, the government provided a Rs 76,000-crore incentive scheme for chipmaking. This financial support played a crucial role in enabling remarkable advancements in the industry.
The Indian semiconductor market is expected to touch USD 64 Billion by 2026, showing a three times growth from $US22.7 billion in 2019, according to a report by Counterpoint Research and the India Electronics & Semiconductor Association (IESA).
Till 2022, India was importing over 90% of its semiconductor requirements; all this is set to change with India becoming a member of the Minerals Security Partnership (MSP), a US-led 14 nations grouping.
The MSP was formed in June 2022 to delink leading global economies’ dependency on China to supply critical minerals.
There is a tussle between China and developed nations, and India for free and secured access to key minerals – which are needed for the manufacturing of chips or semiconductors.
Semiconductor is a key component that traverses diverse sectors, ranging from mobile phones to space technology. According to McKinsey & Company, “semiconductors will become a trillion-dollar industry by 2030.”
Within just eighteen months, India has achieved remarkable strides in the semiconductor industry. The nation has set an ambitious goal of fostering 100 semiconductor design startups by the year 2024. To support this growth, the government has allocated a substantial Rs 76,000-crore incentive scheme specifically aimed at boosting the chipmaking sector. This financial backing has played a vital role in facilitating the impressive advancements made so far.
Furthermore, India’s inclusion into the Major Semiconductors Players (MSP) group will act as a catalyst in propelling New Delhi towards becoming a prominent player in the global semiconductor landscape. This recognition on the international stage will further elevate India’s standing and prominence in the semiconductor world.
In December 2021, the government launched the Semicon India Programme with an outlay of Rs 76,000 crore (approximately $10 billion) to develop the semiconductor and display manufacturing ecosystem. Under the modified program, the government introduced four schemes to support semiconductor and display manufacturing.
Prime Ministry Narendra Modi recently said that technology firms would be given 50 percent financial assistance for setting up semic conductor manufacturing facilities in the country.
Top 5 Semiconductors Startups and Companies in India (source F6S)
- Valtrex Systems: A Bangalore-based EDA startup focusing on Hardware, Semiconductors, and Electronic Circuit Design. They offer products and solutions for design verification of RISC-V and ARM-based SoC/IP/CPU implementations.
- GreenIPCore: Located in Noida, this startup develops High Stable and Reliable Soft Digital IPs. Their expertise covers Hardware, Manufacturing, Internet of Things (IoT), Aerospace, Automotive, Security, and Semiconductors.
- QpiSemi Technology: A Bangalore-based startup driving innovation in the field of Semiconductors. Their specialization includes Cyber Security, Hardware, Space, and Quantum Computing. QpiSemi aims to create semiconductor-based products and integrated circuits that prioritize future hardware security by combining CMOS and Quantum technologies.
- Powency Circuit: This Gandhinagar-based startup deals with Power Management and Integrated Circuit products in the Semiconductors sector. They are involved in the designing, validation, testing, sales, and marketing of power management ICs (PMICs). The company was founded in June 2016 and is currently working on prototype development.
- Sisoc Semiconductors: A company offering Embedded and Semiconductor Design Services. Their expertise lies in Hardware, Manufacturing, Design, Utilities, Semiconductors, and Industry Analysis. Sisoc Semiconductors is renowned for providing high-quality and reliable services in the areas of Embedded Systems and Semiconductors.
In an effort to compete with countries like China, Taiwan, and South Korea, India is providing an extensive range of financial and non-financial incentives to entice global companies into setting up semiconductor fabs within its borders. These incentives encompass infrastructure development, streamlined regulations, and other attractive benefits aimed at making India a favourable destination for semiconductor manufacturing ventures.
The top 11 largest semiconductor companies in India are
HCL Ltd
Vedanta Ltd
Tata Elxsi Ltd
Dixon Technologies (India) Ltd
Moschip Technologies Ltd
ASM Technologies Ltd
SPEL Semiconductor Ltd
Ruttonsha International Rectifier Ltd
MIC Electronics Ltd
Surana Telecom and Power Ltd
NXP Semiconductors
Lack of Tallent A Challenge
According to David Reed, the CEO of Vedanta Foxconn, India encounters a significant hurdle in the form of a scarcity of credible and experienced talent for semiconductor manufacturing facilities. Semiconductors often likened to oil in terms of driving global innovation, have become the lifeblood of the modern world.
Career Opportunities in Semicon Industry
The semiconductor industry presents fulfilling careers with continuous growth opportunities and the chance to drive rapid advancements. While it may have a reputation for being intricate and perplexing, it becomes an excellent field for cultivating a successful and enduring career once new employees become familiar with the distinctive manufacturing processes.
