Introduction

Did you know that the global semiconductor market is expected to reach $1 trillion by 2030, with India poised to become a key player in this technological revolution?

In this blog, we will explore the latest trends in the semiconductor industry, the future landscape, and India’s emerging role in this vital sector. Discussed in the Semiconductor Ecosystem Conference held on July 15, 2024.

Did you know that Indian-Chinese semiconductor product companies have more than 20% of designers in IC globally?

Let’s discuss India’s Fabless Semiconductor opportunities and challenges:

You might be thinking, what are Fabless and Fab Semiconductors? Fabs (short for “fabrication”) are facilities where semiconductor products are manufactured. Fabless companies focus on designing chips.

OPPORTUNITIES

1. Increasing system design decisions happening in India in CE (European Conformity), IT (Information Technology), and A&D (Aerospace and Defense).
2. Specific areas like Power, Analog, and RF are still fragmented globally, creating opportunities for new players.
3. Emerging technologies in SiGe (Silicon and Germanium), GaN (Gallium Nitrate), and SiC (Silicon Carbide) where global leaders are not yet established.

CHALLENGES

Let’s talk about challenges:

1. System designs will outperform ICs – incentives cannot compensate for performance.
2. Product marketing and System Architecture Knowledge is a BIG GAP.
3. Companies need to achieve price points and compete globally to achieve volumes.
4. IBM’s development of 2nm chip technology promises to deliver 45% higher performance and 75% lower energy usage compared to today’s most advanced 7nm chips.

Opportunities for Fabless Semiconductor Companies in India

TATA Electronics Private Ltd., in this conference, discussed projects for the coming years:

1. The semiconductor market in India represents a $30bn+ market that is expected to cross $100bn by 2030.
2. With this, an INR 76,000 cr government incentive outlay, key players have plans to set up semiconductor Fabs, OSATs, and ATMPs in India over the next 4-5 years, with INR 100,000+ cr of projects already in the pipeline.
3. Companies with plans for semiconductor projects in India include TATA Electronics, Tower Semiconductors, RENESAS, and KAYNES Technology.
4. Engineering & Construction (E&C) of these semiconductors represents an INR 30,000+ cr market over the next 5 years.

https://www.tataelxsi.com/industries/semiconductor/AI%20-tools-and-frameworks: The Future of Semiconductor : Trends,Innovations, and India’s Role in the Global Market

Key Takeaways

• Semiconductor EPC is complex: Each project is distinctive, even ones that aim to replicate existing facilities abroad, with differences stemming from unique site characteristics like water and power supply, and varying local regulations concerning construction, safety, environmental standards, etc.
• People availability is critical: With the rising global need for experts and a limited number of professionals with requisite skills, we must prioritize both upskilling and reskilling with urgency.
• Maharashtra, India is strategically positioned to meet the demand with its:
  • Vast industrial ecosystem
  • A robust network of technical institutions at both undergraduate and IT/Polytechnic levels.

What do you think about India’s role in the semiconductor market? Let us know in the comments below!