India’s semiconductor industry is poised to generate 1.5-2 lakh direct and indirect jobs over the next five years, transitioning the electronics sector from assembly-focused manufacturing to a global center for chip design and innovation. The Semicon 2.0 scheme, recently approved by the Union Cabinet with a budget of Rs 1.27 lakh crore, aims to bolster the semiconductor ecosystem in the country.
The semiconductor mission will extend beyond manufacturing to establish a comprehensive ecosystem covering chip design, semiconductor verification, embedded systems, electronic design automation, AI-enabled manufacturing, advanced packaging, and supply chain operations. This initiative is expected to drive significant growth in high-skilled engineering roles by 2030, with a projected 25-30% rise in semiconductor-focused Global Capability Centres.
Sachin Alug, CEO of NLB Services, emphasized the potential for India to enhance its global engineering and innovation standing through capabilities in chip design, fabrication, testing, and advanced packaging. The focus on these areas is seen as a strategic move to elevate India’s position by fostering intellectual property creation and ensuring long-term competitiveness in the semiconductor domain.
The Semicon 2.0 program aims to fortify the semiconductor ecosystem across six key pillars, including chip design, semiconductor manufacturing equipment and materials, fabrication facilities, ATMP/OSAT units, research and development, and talent development. With 12 semiconductor manufacturing projects already approved by the government, involving investments exceeding Rs 1.64 lakh crore, India is gearing up to emerge as a trusted global partner in the semiconductor industry.
