As we look ahead to 2024, India is poised to play a significant role in the global semiconductor landscape, driven by escalating demand for consumer electronics, automotive components, and the widespread adoption of artificial intelligence (AI). Last year, the groundbreaking ceremony of US-based Micron Technology’s Assembly, Testing, Marking, and Packaging (ATMP) facility in Gujarat; multi-billion investment opportunities; and modified semiconductor scheme, among others marked major milestones for the Indian semiconductor market.
The under-construction Micron’s ATMP facility (built with a total investment of $2.75 billion) in Gujarat, mentioned above, is expected to roll out the first chip by end of the year. “By December 2024, the first ‘Made in India’ chip should be ready...definitely. It is always difficult for the first unit to come up, but when a big unit comes, the whole ecosystem automatically follows,” IT minister Ashwini Vaishnaw said in an earlier media interaction.
Further, because of quick developments in AI, the government is also exploring the development of indigenous AI chips. Minister of state for IT Rajeev Chandrasekhar said that the government is likely to take a public-private partnership route for creating computing infrastructure of graphics processing units for the use of startups and researchers in the country, under the India Semiconductor Mission (ISM).
Looking beyond the technological advancements, the semiconductor industry is set to become a major driver of job creation in 2024. Minister Chandrasekhar had earlier said that the investment announced by companies like AMD, Micron, and others in 2023 alone will generate 80,000 direct and indirect jobs.
“In 2024, the semiconductor industry anticipates substantial growth, shaped by a dynamic landscape. Despite a growing ecosystem and significant R&D facilities, a shortage of skilled workers persists, challenging the industry. With 120,000 chip design engineers and a 7% rise in job openings, the Design-Linked Incentive scheme targets 250,000 jobs by 2030 to meet the demand for 3 million skilled workers”
Vij also added that despite challenges like potential global economic slowdown, supply chain disruptions, geopolitical tensions, rising costs — jobs in this sector remain promising, offering benefits like competitive compensation, job security, and meaningful work.
The growing sector in the country will also offer a unique set of opportunities for the startup community, said Sateesh Andra, managing director — Endiya Partners, an early-stage venture capital fund that invests in Indian product startups.
“2024 will be a critical year for Indian Semi-startups. While challenges like funding and talent remain, the ISM initiatives create a supportive ecosystem. By focusing on niche markets, leveraging government support, and capitalising on the domestic demand surge, Indian startups have the potential to carve a significant space in the global semiconductor landscape,” he said. Andra added that despite the scope, there will be a few challenges too which include funding crunch, talent acquisition, and competition from established players like Nvidia, AMD, and Intel.
Lastly, the overall semiconductor market in India is projected to reach $55 billion by 2026, with a 20% CAGR during 2022-2026, as highlighted in a report by Deloitte. “Looking ahead to 2024, the industry is in the transformative phase. Going forward, the integration of edge computing with enhanced connectivity and security will bring transformational changes across various industry segments,” opines Hitesh Garg, Vice President and India Managing Director, NXP Semiconductors.
