The Entrepreneurs of the Future: Fostering Growth in India's Semiconductor Sector
Sanjay Gupta, President & CEO, Minda Corporation ,Chairman - Indian Electronics & Semiconductors Association
In the age of rapid technological advancement, semiconductors, the unsung heroes of the digital revolution, are pivotal in powering modern electronics, from smartphones and data centers to electric vehicles and healthcare devices. The global semiconductor market will surpass USD 1 trillion by 2030, primarily fueled by the escalating demand for cutting-edge technologies such as artificial intelligence, cloud computing, 5G connectivity, and electric mobility.
India, with its burgeoning appetite for electronics and digital services, finds itself at a critical juncture, poised to harness its potential and become a global leader in the semiconductor industry.
The Indian Semiconductor Landscape
India has already established itself as a significant player in the global semiconductor ecosystem. The nation's domestic semiconductor consumption is projected to exceed USD 80 billion by 2026, reflecting its growing dependence on these electronic marvels.
However, a significant gap exists between this voracious demand and the relatively modest local production. This disparity unveils a substantial opportunity for indigenous manufacturing and value addition in the semiconductor sector. India's ample talent pool, comprising more than 120 design units and over 20% of the world's semiconductor design engineers, underscores its potential. Furthermore, India's policy environment, enriched with government initiatives and incentives, fuels the electronic system design and manufacturing (ESDM) sector.
The Hurdles on the Road to Glory
Despite its promise, India's journey toward semiconductor supremacy is challenging. To conquer these obstacles and nurture a thriving semiconductor ecosystem, the entrepreneurial spirit must take the lead:
High Capital Investment: The semiconductor industry demands monumental investments to establish semiconductor fabrication plants (fabs). Setting up a fab requires access to reliable infrastructure, including land, water, power, and logistics, and typically entails multi-billion dollar expenditures. India currently lacks operational fabs for advanced chips and heavily relies on imports. To attract substantial investments and encourage fab establishment in India, the government must provide robust financial support mechanisms such as subsidies, tax incentives, low-interest loans, and guarantees.
Technological Competitiveness: The semiconductor industry is a dynamic and highly competitive arena marked by rapid technological evolution and shifting consumer preferences. India must enhance its capabilities in leading-edge technologies like nanoelectronics, compound semiconductors, silicon photonics, sensors, and quantum computing. This necessitates significant investment in research and development (R&D) infrastructure and seamless collaboration among academia, industry, and government.
Intellectual Property Rights (IPR) Protection: In an industry reliant on innovation and creativity, safeguarding intellectual property rights (IPR) is critical. India must strengthen its IPR regime and enforcement mechanisms to protect innovators' interests. Simultaneously, fostering the creation and commercialization of indigenous IPRs within the semiconductor sector is paramount.
Talent Development: A skilled and adaptable workforce is essential for the semiconductor industry to stay ahead of evolving technological trends and market demands. India must invest in talent development and programs that provide high-quality STEM education. Opportunities for skill enhancement and lifelong learning should also be created to nurture the existing semiconductor workforce.
The Entrepreneurial Catalyst
In the journey towards semiconductor eminence, entrepreneurs are the catalysts of change. They are visionaries who identify market opportunities, devise innovative solutions, generate employment, and propel economic development. Entrepreneurs act as the bridge connecting supply and demand within the semiconductor sector, crafting local products and services catering to various industries' multifaceted needs. Here are the prime entrepreneurial opportunities within India's semiconductor sector –
Chip Design: India's strong presence and expertise in chip design can be leveraged to innovate products for diverse applications, including mobile devices, computers, servers, automotive systems, and medical devices. Front-end design focuses on the chip's logic and architecture using electronic design automation (EDA) software tools. In contrast, back-end design converts the logic into a physical layout using computer-aided design (CAD) tools.
Chip Manufacturing: India has an immense opportunity to establish its footprint in chip manufacturing. Entrepreneurs can explore this domain by setting up wafer fabrication (fab) or assembly, test, mark & pack (ATMP) facilities bolstered by government support and collaboration with other stakeholders.
Chip Packaging: Chip packaging offers an avenue for India to add value and differentiation to its semiconductor products. Entrepreneurs can harness their expertise to craft innovative solutions that enhance chip performance, reliability, and functionality.
Chip Testing: Chip testing presents an opportunity for India to provide cost-effective and quality services to the global semiconductor industry. Entrepreneurs can capitalize on their expertise to offer testing services to domestic and international clients.
“India's semiconductor journey hinges on entrepreneurs, the architects of innovation, who bridge the supply-demand gap and drive the nation toward global semiconductor prominence.”
Connected Devices and IoT in Automobiles: Shaping the Future
In addition to the existing challenges and opportunities in the semiconductor industry, there is a growing need to address the role of semiconductors in powering the future of connected cars and the Internet of Things (IoT) in the automobile sector. As vehicles become increasingly connected and autonomous, semiconductors play a pivotal role in enabling these advancements.
Connected Cars: Semiconductors are at the heart of connected cars — providing the processing power for features like advanced driver assistance systems (ADAS), infotainment systems, and vehicle-to-vehicle (V2V) communication. India's semiconductor industry can leverage its design and manufacturing capabilities to cater to the evolving needs of the automotive sector. Entrepreneurs can explore opportunities to develop semiconductor solutions for connected vehicles, ensuring safety, security, and efficiency.
IoT in Automobiles: The Internet of Things in the automobile sector encompasses a wide range of applications, from vehicle diagnostics and predictive maintenance to enhanced in-car experiences. These applications rely on a network of sensors and communication devices powered by semiconductors. India's semiconductor industry can position itself as a key player in supplying IoT components for automobiles, contributing to the growing demand for smart and connected transportation solutions.
To sum it up, India holds boundless potential in the semiconductor sector, and entrepreneurs are the torchbearers of its destiny. By overcoming formidable challenges and infusing the industry with innovation and entrepreneurship, India can realise its vision of becoming a global semiconductor and enhance its self-reliance and competitiveness. The entrepreneurs of the future hold the key to unlocking this potential, fostering growth, and propelling India onto the world stage as a semiconductor powerhouse.
The journey into Industry
Sanjay Gupta is an entrepreneurial and passionate leader with an impressive track record in the global and Indian Hi-Tech Electronics and Semiconductors industry. With over 27 years of hands-on experience, he has consistently demonstrated his expertise in various domains, including strategy, innovation, technology, research and development, operations, and management. Sanjay is driven by a profound passion for assembling and nurturing exceptional teams and leadership talent, particularly for navigating uncharted territories in the ever-evolving tech landscape. He is renowned for his strategic acumen, ethical leadership, and the ability to spearhead mission-critical initiatives that propel organizations to new heights. His commitment to a continuous improvement mindset underscores his dedication to excellence in every aspect of his professional journey. Sanjay Gupta has left an indelible mark on the high-tech industry through his commendable dedication and leadership spirit.
