So far, the Indian government has approved six proposals for manufacturing semiconductors worth a total investment of around ₹1.55 lakh crore, with the possibility of generating more than 27,000 direct jobs, Parliament was told on Wednesday.
In a reply to Lok Sabha in writing, Minister of State for Commerce and Industry Jitin Prasada has stated that the projects come under the Semicon India Programme launched with a budget of ₹76,000 crore to create the semiconductor and display manufacturing ecosystem of the country.
Since semiconductor manufacturing is so complex and precise, the sector requires a very skilled population. "Semiconductor manufacturing is a highly specialised industry with a complex manufacturing process. Thus, most of the employment generated in this industry is employment in skilled jobs," said the minister. He also said that as a core industry, the semiconductors are likely to drive employment generation in allied industries and supply chain as well.
Support for Startups and Design Ecosystem
Financial assistance is provided to eligible startups and micro, small, and medium enterprises (MSMEs) under the Design Linked Incentive (DLI) scheme. Until now, 22 semiconductor design firms have been approved under this scheme, out of which three are from Telangana, as per Prasada.
Besides, 11 Telangana-based firms have been provided design infrastructure support. The state is also gaining from the Chips to Startup (C2S) programme, which involves giving 22 institutions design tools and giving six institutions financial support.
Tamil Nadu has also come forward as a contributor to the semiconductor design drive. "Likewise, of 22 design firms cleared under the DLI program, till date, 3 firms are cleared in Tamil Nadu. Design infrastructure support has also been cleared for 6 firms in Tamil Nadu," said Prasada.
Focus on Skilling and Training
The government is giving a big thrust to talent creation through programs such as the C2S program, which is aimed at training 85,000 skilled experts in semiconductor technologies. Advanced software and tools are being made available to engineering institutes for aiding chip design activities. Till date, over 45,000 students in 100 institutions have been covered under this program.
To facilitate experiential learning, a Skilled Manpower Advanced Research and Training (SMART) Lab was opened in NIELIT Calicut in 2022 with the aim of training one lakh engineers across the country. So far, more than 42,000 engineers have already undergone their training.
International Collaborations in the Pipeline
It is also collaborating with key industry players and universities. "The government is also coordinating with industry and universities like Lam Research, IBM, and Purdue University," stated the minister, showing a move toward aligning global know-how with indigenous capability building.
These initiatives illustrate India's increasing aspiration to emerge as a significant global player in the semiconductor arena, in addition to fulfilling the country's requirement for sophisticated manufacturing capacity and future-capable workforce.
