India’s Semiconductor Industry Faces Critical Talent Shortage by 2027 | UNSKYD
The semiconductor industry in India is projected to face a significant talent gap, with an estimated shortage of 250,000 to 300,000 professionals by 2027. This shortfall will affect various sectors, including research and development (R&D), manufacturing, design, and advanced packaging, according to a recent report by TeamLease Degree Apprenticeship.
As India aspires to capture a substantial share of the global semiconductor manufacturing market, the Indian government has approved four key projects under the ₹76,000 crore semiconductor incentive scheme. This initiative is a crucial step in fortifying India’s position in the global semiconductor supply chain.
Government and Industry Efforts to Bridge the Skills Gap for India’s Semiconductor Industry
Sumit Kumar, Chief Business Officer at TeamLease Degree Apprenticeship, highlighted a surge in apprenticeships within the electronics sector, growing from 7,517 in 2019-20 to an impressive 91,948 in 2023-24—a 12.2-fold increase. He emphasized the pivotal role of government support through the PLI (Production Linked Incentive) and DLI (Design Linked Incentive) schemes. These initiatives are essential for fostering a robust semiconductor ecosystem in India, with collaboration between industry, academia, and training organizations being key.
Ramesh Alluri Reddy, CEO of TeamLease Degree Apprenticeship, also underscored the mission to boost employment in India. He cited the $15 billion investment in three semiconductor plants as a major milestone in this mission. Reddy noted that the PLI scheme alone offers a $1.7 billion incentive package for companies establishing semiconductor manufacturing facilities in India. He further pointed out that advancements in AI-driven technologies are propelling India towards higher-value activities in the semiconductor sector.
The Future of India’s Semiconductor Industry
AI-powered chip design, smart manufacturing, and the integration of IoT and 5G technologies are driving demand for skilled professionals in these areas. Building a high-value ecosystem and cultivating a competent workforce through degree apprenticeships and training programs is crucial for positioning India as a global leader in semiconductor manufacturing and design.
Industry projections suggest that India’s semiconductor market could reach $100 billion by 2030. To support this growth, the government has collaborated with industry experts to develop specialized curricula for over 300 leading Indian colleges, focusing on semiconductor education.
India Semiconductor Mission (ISM): Building a Global Hub
The India Semiconductor Mission (ISM) is a specialized division within the Digital India Corporation. ISM aims to establish a vibrant semiconductor and display ecosystem, positioning India as a global hub for electronics manufacturing and design. Guided by global experts, ISM is central to the seamless deployment of the Program for Development of Semiconductor and Display Ecosystem, working in close consultation with government ministries, industry stakeholders, and academia.
About the Semicon India Programme
The Union Cabinet approved the comprehensive Semicon India Programme in 2021, with a financial outlay of INR 76,000 crore. This initiative aims to develop a sustainable semiconductor and display ecosystem by offering attractive incentives to companies engaged in Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors, Silicon Photonics, Sensors (including MEMS) Fabs, Semiconductor Packaging (ATMP/OSAT), and Semiconductor Design.
Vision and Objectives of ISM
- Strategy: Formulate a comprehensive long-term strategy for developing semiconductor and display manufacturing facilities, and the semiconductor design ecosystem in India.
- Supply Chain: Facilitate the adoption of secure and trusted electronics through a robust semiconductor and display supply chain.
- Design & Startups: Support the growth of the Indian semiconductor design industry through Electronic Design Automation (EDA) tools, foundry services, and mechanisms for startups.
- Intellectual Property: Promote the generation of indigenous Intellectual Property (IP) and encourage technology transfer.
- Partnership: Foster collaborations with national and international agencies, industries, and institutions for research, commercialization, and skill development.
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