Semiconductors and talent- our colleges, universities need to chip in

Semiconductors and talent: our colleges, universities need to chip in

By Sanket Goel

The writing is on the wall. The US and China are in a tech war, with Washington trying to limit Beijing’s access to advanced semiconductor technologies. According to Pat Gelsinger, the CEO of Intel, just as oil shaped geopolitics over the past five decades, semiconductors will shape geopolitics over the next five decades. Gina Raimondo, the US Commerce Secretary, said that the US will prevent China from accessing the most advanced US semiconductor technology.

Advanced fabs in India

India is a long way from being able to manufacture the advanced semiconductors being made by Taiwan’s TSMC – the world’s leading producer of advanced semiconductors – or even the less advanced chips made by China’s SMIC.

India cannot roll out a programme that’s as ambitious as China’s TTP or Qiming – under which hundreds of billions are being invested in semiconductor technology.

But the country can work on other crucial facets that are extremely important to becoming a manufacturer of semiconductors. For instance, developing an ecosystem where intellectual property is incentivised, developing internal capabilities, and building conducive infrastructure to the development of semiconductor technologies.

Intellectual prowess

There is reason for optimism. The India Brand Equity Foundation stated that the country is home to 200 semiconductor design and embedded software companies. India has the intellectual prowess to design semiconductors, but doesn’t have the expertise, investment, infrastructure and ecosystem to manufacture them. The government is acting to change this.

To position India as a global hub for electronic systems design and manufacturing (ESDM), the government has approved an outlay of $10 billion, and is offering fiscal support equivalent to 50% of the project cost under the scheme for setting up semiconductor fabs.

These initiatives have attracted leading global players. America’s Micron Technology has committed to invest $825 million in a semiconductor testing and assembly plant in Sanand, Gujarat. The total proposed investment is slotted to be $2.75 billion. The difference between Micron’s committed and proposed investment will be made up by state and central government subsidies.

The American semiconductor toolmaker Applied Materials will invest $400 million over the next four years in a new engineering centre in Bengaluru.

Building a semiconductor fab is a years-long and expensive process. Operating fabs requires a highly-skilled workforce. Creating such a workforce is essential if India expects to become a serious semiconductor player. On this front, progress is being made.

Chipping in with talent

The Semicon India Future Skills Talent Committee – tasked with finding a way to make India a hub for the manufacture of semiconductors – stated that the country needs 1.2 million skilled workers in the semiconductor industry by 2032.

To meet this demand, the curriculum taught in colleges and universities is being changed. The AICTE has started BTech Electronics (VLSI Design and Technology) and a diploma in Integrated Circuit Manufacturing. A minor programme in semiconductor manufacturing has also been approved.

The Skills Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP) scheme aims to train 10 million people across sectors, including in the semiconductor industry. Under the National Skill Development Corporation, the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) will train youth, and many trained under the PMKVY will acquire the skills needed to work in semiconductor foundries.

In addition to textbooks and classrooms, India will need to develop a start-up ecosystem if it expects to become a global player in semiconductors. The MeitY’s Modified Programme for Semiconductors and Display Fabs is a step in that direction. But India also needs to learn from others’ successes.

When it comes to semiconductor foundries, China has a decades-long lead over India. One reason is heavy state backing of the semiconductor sector. India needs to borrow this aspect from China.

Rolling out relevant education policies, attracting investment, and nurturing an ecosystem where innovation related to semiconductor technologies can thrive are vital. India must make a concerted push in all these areas to become a semiconductor major.

The author is dean, Research & Innovation (Institute-wide) and professor, BITS Pilani Hyderabad.