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

India is poised to bridge the skill gap in the global semiconductor industry in a major way, a new report has found.

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.

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 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 demands significant investment, it remains a profitable industry globally. The Indian government has initiated various measures to boost domestic semiconductor manufacturing, aiming to build a robust semiconductor ecosystem in the country.

Currently, 20 percent of the world's semiconductor design houses are based in India, engaging in innovative work such as designing AI-enabled chips. Investments are being made to establish fabrication and outsourced semiconductor assembly and test facilities in India.