India is rapidly advancing in semiconductor design and manufacturing. With strong government backing and a vast talent pool, the country aims to become a global hub for electronics. The India Semiconductor Mission, launched in 2021, has allocated ₹76,000 crore to boost chip production and design. Several large-scale manufacturing units have been approved in multiple states. This push comes amid a global chip shortage and rising demand for skilled designers.
Government Initiatives and Industry Support
The Government of India offers subsidies for chip fabrication and assembly plants. Production-linked incentives support hardware manufacturing such as phones and PCs. Critics warn that subsidies alone may not ensure long-term industry stability. However, officials stress the strategic importance of domestic chip production for supply chain security. The government also invests in intellectual property and design capabilities, recognising India’s existing strengths in these areas.
Chip Design as a Complex Ecosystem
Chip design is likened to city planning, requiring a variety of specialised roles. Semiconductor architects plan chip capabilities and budgets. Designers use advanced software tools to simulate circuits. Fabricated samples undergo rigorous testing for real-world conditions. Modern chips contain billions of transistors layered intricately. Manufacturing demands ultra-pure water and stable electricity, making it a challenging sector to develop.
Access to Advanced Design Software
The government’s Chips to Startups programme provides free access to professional electronics design automation (EDA) tools from Siemens, Cadence, and Synopsys. This has lowered costs for students and faculty in dozens of colleges. Students now train on industry-grade software rather than limited academic versions. This exposure is expected to prepare graduates for frontier-level chip design in the near future.
Industry Growth and Regional Talent Distribution
Indian semiconductor design firms like Tessolve have expanded domestically and internationally. Many employees work remotely from Tier-2 cities, reflecting a decentralised talent base. The COVID-19 pandemic accelerated remote work acceptance, broadening opportunities beyond major tech hubs. Industry leaders call for closer university-industry collaboration to align education with real-world needs.
Challenges in Academia-Industry Collaboration
India’s industry invests only 0.4% of revenues in academic research, far less than the US and South Korea. This limits innovation and preparedness among graduates. In contrast, US firms collaborate closely with universities to solve future challenges, gaining competitive advantages. Indian companies often hesitate to sponsor PhD research despite its cost-effectiveness. This gap hampers India’s ability to lead in cutting-edge chip design.
Wider Electronics Ecosystem Issues
India’s electronics manufacturing base remains underdeveloped. Many simple components are imported, weakening the supply chain. Once an exporter of advanced technology, India now relies on foreign parts even for basic products. Strengthening the entire ecosystem is crucial to support chip design and production growth.
Value of Design and Intellectual Property
The highest value in electronics lies in design and intellectual property, not just chip fabrication. For example, components form only about 31% of an iPhone’s cost. India’s goal is to become a product nation by creating globally desirable goods. Patented design elements, including user interface features, add value beyond hardware. The growing demand for design talent indicates optimism for this vision.
Future Prospects
India’s semiconductor sector is poised for growth with government support, talent availability, and improved tools. However, success depends on stronger industry-academia partnerships and ecosystem development. The ingredients for progress exist; the challenge lies in sustained commitment and innovation.
Questions for UPSC:
- Critically discuss the role of government policies in shaping India’s electronics manufacturing and semiconductor design sectors.
- Analyse the impact of intellectual property rights on the global competitiveness of technology-based economies.
- Examine the challenges faced by emerging economies in building a robust semiconductor manufacturing ecosystem. How can these be overcome?
- Estimate the significance of academia-industry collaboration in advancing high-tech research and development in India’s technology sector.
