By Eswara Rao Nandam, President & Director, Polymatech Electronics Private Limited
India’s semiconductor market is rapidly growing and transforming with advancements in technology and the increasing demand for electronic devices. The country has been primarily focused on software and services, but with the increasing demand for electronics, 5G telecom services and the growth of the Internet of Things (IoT), there is a growing need for semiconductor chips. The country has been emerging as a major player in the global semiconductor market, and its domestic semiconductor industry is expected to witness significant growth in the coming years.
Let us now explore the emerging trends and key players in India’s semiconductor market landscape.
Emerging trends:
1. Increase in domestic manufacturing: The Indian government has launched various initiatives to boost domestic manufacturing of semiconductor components. The “Make in India” campaign, for instance, aims to create a conducive environment for the domestic manufacturing of electronic products. This has led to the establishment of new semiconductor manufacturing facilities in the country, thereby driving the growth of the semiconductor industry.
2. Semiconductor design services: India is becoming a hub for semiconductor design services. Many multinational semiconductor companies have established design centres in India to take advantage of the country’s engineering talent.
3. Indian Semiconductor: The Indian semiconductor industry is still in its early stages, with a lot of potential for growth and development in the coming years.. There is a growing interest in investing in Indian semiconductors manufacturing facilities.
4. Global players: Global players can gain access to the Indian market and leverage India’s skilled workforce and cost-effective manufacturing ecosystem, while Indian players can benefit from the transfer of technology, expertise, and funding from global players.
5. India Electronics and Semiconductor Association (IESA): IESA which is a premier Industry body representing the ESDM & Intelligent Electronics industry in India, envisages a vibrant and inclusive ESDM eco-system with participation from every state of India and developing products & technologies which will address national and global challenges.
6. Rise of artificial intelligence (AI): AI is another emerging trend that is driving the growth of the semiconductor industry in India. The country has a large pool of skilled AI professionals, and several companies are investing in AI research and development. This has led to an increase in demand for AI-related semiconductor components.
Emerging Players:
India has been actively pursuing the establishment of a semiconductor manufacturing industry for several years. However, the country currently does not have a strong domestic semiconductor manufacturing industry and relies heavily on imports.
1. Global Players: Several global semiconductor manufacturers, such as Intel and Samsung, have established manufacturing facilities in India, but these facilities primarily focus on the assembly and testing of semiconductors rather than the actual fabrication of chips.
2. Collaboration with global players: There have been some instances of global players collaborating with Indian players for semiconductor manufacturing or assembly and testing of Semiconductors. The investment is aimed at developing areas of technology collaboration, including the development of semiconductor solutions from India.
In conclusion, India’s semiconductor market is witnessing significant growth, driven by the increasing demand for electronic devices and the growing focus on domestic manufacturing. With the emergence of new trends, global player collaborations, Investment in Indian semiconductor players, investment in research and development, and intellectual properties, the Indian semiconductor market is poised for a bright future.
