How Will India's $18 Billion Chip Strategy Create Millions of High-Tech Jobs?

India is stepping up its efforts in the semiconductor sector with a massive investment plan. This strategy focuses on building domestic manufacturing capabilities and fostering high-tech employment opportunities.

India's Bold Move into Semiconductor Manufacturing

The country has greenlit a $18 billion investment for 10 semiconductor projects across six states. These efforts aim to shift India from a chip importer to a key global producer. Tata Electronics is leading with a $11 billion fab in Gujarat, partnering with Taiwan's Powerchip. This facility will produce chips for AI, automotive, and wireless tech.

The plan includes fabrication plants, assembly, and testing facilities. By late 2025, India expects to start commercial production of its own chips.

Market Growth and Economic Benefits

India's semiconductor market is expanding rapidly. In 2023, it stood at $38 billion and could hit $110 billion by 2030. Drivers include mobile tech, EVs, and 5G infrastructure.

These projects will create over 20,000 direct jobs in skilled areas, with many more indirect roles. The strategy supports self-reliance by boosting local sourcing from 9% in 2021 to 17% by 2026. This means better wages and tech innovation for the economy.

High-tech jobs in design and manufacturing
Savings on imports through domestic production
Growth in related sectors like automotive and AI

Challenges on the Path Forward

India faces hurdles in water usage, power supply, and skilled workers. Semiconductor fabs need huge amounts of water and reliable energy, which are scarce. There's also a shortage of 250,000-300,000 professionals by 2027.

Training programs are addressing this, focusing on compound semiconductors like Silicon Carbide for EVs and renewables.

Global Context and Opportunities

With global supply chains at risk from geopolitical issues, India's timing is key. Partnerships with firms like Micron and ARM are bringing in expertise.

This could position India as a major player, learning from successes in Taiwan and South Korea.