Investments following PM Modi's visit have created immense opportunities for India's semiconductor industry: Sanjay Gupta, Chairman, IESA

Narendra Modi, Prime Minister of India, recently visited the United States of America with an intent to strengthen investments into India and enhance technology cooperation. Post the visit, a number of large companies declared various new investments into the country and also announced several initiatives. Some of the noteworthy investments were Micron’s $800 million commitment towards a new $2.75 billion semiconductor assembly and test facility in India with help from India Semiconductor Mission. Recently, Sanjay Gupta, Chairman, IESA, spoke to Dataquest about how these new developments will help in strengthening India’s position as the global leader  in semiconductor manufacturing, design, and innovation.

DQ: How are the significant investments made after Prime Minister Narendra Modi’s visit expected to contribute to the growth and development of India's semiconductor industry?

Sanjay Gupta: Investments following PM Modi's visit have created immense opportunities for India's semiconductor industry, aligning with the goal of establishing India as a global hub for electronics. This benefits sectors like telecommunications, automotive, healthcare, and consumer electronics. The investments have led to advanced fabrication units, R&D centers, and domestic chip production, reducing import reliance. An innovation-friendly environment has attracted global and domestic players. Collaboration between industry, academia, and research institutions will drive infrastructure, skilled workforce, and intellectual property frameworks. Increased chip production will create jobs, upgrade technology, and boost exports, enhancing India's global position in the value chain. PM Modi's initiatives have laid the foundation for a thriving semiconductor industry in India.

DQ: The US Semiconductor Industry Association and India Electronics Semiconductor Association (IESA) released an interim readiness assessment. What were the main findings and how do they help identify near-term industry opportunities?

Sanjay Gupta: The interim readiness assessment released by the US Semiconductor Industry Association and IESA sheds light on the strengths, challenges, and opportunities within India's semiconductor industry. It provides valuable insights that aid in identifying near-term industry opportunities and formulating targeted strategies to maximize the growth potential. By focusing on the identified areas of opportunity, India can foster innovation, attract investments, and position itself as a leading player in the global semiconductor market.

DQ: With these investments and initiatives in place, what is the vision for the future of India's semiconductor industry? How will it enhance the nation's position in the global semiconductor market?

Sanjay Gupta: The vision for the future of India's semiconductor industry is to establish the country as a global leader in semiconductor manufacturing, design, and innovation. This vision will be realized through investments, research and development, collaboration, and the development of a skilled workforce. India's enhanced position in the global semiconductor market will be achieved by reducing import dependence, attracting investments, fostering innovation, and supporting the government's broader initiatives. The growth of the semiconductor industry will contribute to India's technological advancement, economic growth, and its emergence as a key player in the global semiconductor landscape.

DQ: How do these developments align with the broader goals and objectives of the India Semiconductor Mission?

Sanjay Gupta: The developments in the semiconductor industry in India, driven by the investments and initiatives made after PM Modi's visit, strongly align with the broader goals and objectives of the India Semiconductor Mission. These developments support the mission's objectives of reducing import dependence, fostering innovation, and positioning India as a global player in semiconductor design and manufacturing. The growth and progress of the semiconductor industry in India contribute to the fulfillment of the mission's vision of creating a vibrant semiconductor ecosystem in the country.

DQ: In terms of job creation and skill development, how do you anticipate these initiatives will impact the Indian workforce, particularly in the semiconductor sector?

Sanjay Gupta: The Indian government's initiatives in electronics and semiconductors will have a significant impact on job creation and skill development. They aim to boost domestic manufacturing, attract investments, and promote innovation in the sector. These efforts will lead to the establishment of new semiconductor fabrication units and research centers, creating job opportunities for engineers, technicians, researchers, and support staff. Skill development programs are also being emphasized upon to bridge the skill gap and equip the workforce with industry-relevant skills in semiconductor design, manufacturing, testing, and packaging, which certainly paints a bright picture for the future.

DQ: Finally, what are the key challenges or obstacles that need to be addressed to ensure the success of these initiatives and the sustainable growth of India's semiconductor industry?

Sanjay Gupta: India's electronics and semiconductor sector shows promise, but it faces challenges for sustainable growth. The availability of skilled talent is a major hurdle, necessitating investment in skill development programs and collaboration with educational institutions. Capital investment and infrastructure support are also needed to attract semiconductor companies, requiring reliable power supply, water resources, logistics, and streamlined regulatory processes. Intellectual property protection is crucial for growth, and fostering research, collaboration, and innovation will drive technological advancements. A multi-stakeholder approach involving the government, industry, and academia is necessary for overcoming these challenges and achieving long-term success.

In addition, risk capital encourages more and more entrepreneurs and lets them take innovation driven risk in major areas that need focused attention. That risk capital compiled with easy access to EDA tools, cheaper test shuttles and access to costly validation equipment will put our semiconductor ecosystem on fast pathway towards success.