BENGALURU: The Indian semiconductor sector is eyeing a formidable position on the global map -- banking on sustained demand -- despite the pandemic and geopolitical tremors. But some bottlenecks need to be fixed beforehand.
India is a massive market for consumer electronics and automobiles, which are dependent on semiconductors. It also boasts of manpower imbued with the right technical talent. However, experts advise that certain elements within the semiconductor ecosystem need attention first, for the latter to seamlessly function and deliver.
“What makes India a semiconductor nation? The biggest issue is setting up the ecosystem itself. Different factors collectively constitute the semiconductor landscape. We have a vibrant design ecosystem, with close to 200 companies,” Applied Materials CTO Dr Suraj Rengarajan said.
Addressing a seminar on ‘Making India a Semiconductor Nation’, he continued, “The other parts of the ecosystem are either absent or sketchy. While a startup space is developing, manufacturing does not exist, which we want to jumpstart... with required subsidies and the right climate.”
NXP Semiconductors Country Manager Hitesh Garg said, “While we have made progress in the last 20 years, there are gaps. Although we took strong steps for the design ecosystem or at least built India as a semiconductor design superpower, we have yet to make major forays into manufacturing or even research. Also, the overall product remains a key aspect. As Indians, we have unique needs and challenges, and we need to build solutions specific to India.
That’s where semiconductors play a big role” Another issue that the industry is concerned about is the lack of a robust supplier ecosystem. “Also, when someone makes chips for customers here, it must be made in the way they use it and at the needed price point,” Garg said.
Today, the global semiconductor industry is valued at $600 billion and is expected to gallop to $1 trillion in seven years, while the Indian market for the same would touch $7.76 billion this year, according to Statista.