Article: Embedded systems industry: Navigating through the skilled labour shortage


Embedded systems industry: Navigating through the skilled labour shortage

The chip design industry faces a crucial skill gap, demanding a bridge between theoretical knowledge and practical expertise.
Embedded systems industry: Navigating through the skilled labour shortage

The persistent global chip shortage has reverberated throughout the embedded systems industry, causing profound disruptions in production cycles and stagnation across various sectors. In response to this challenge, India is poised on the brink of a semiconductor renaissance, bolstered by proactive government strategies. Faced with a scarcity of critical semiconductor components, many companies are turning to their engineering teams for solutions. However, to effectively implement these strategies, the industry is in dire need of highly skilled engineering expertise.

As industries rapidly embrace cutting-edge technologies like cloud computing, IoT, and embedded software systems, they are met with a pressing shortage of skilled engineers capable of seamlessly integrating these innovations into their engineering processes. The industry's fervent drive to tackle this challenge and pioneer revolutionary solutions has intensified the battle for talent, particularly in the realm of embedded software engineering, resulting in a considerable talent gap.

The skill gap dilemma in the embedded systems industry 

The demanding skill gap in advanced chip design, analogue circuitry, and system-level integration is placing strain on the disrupted Embedded Engineering market. India's ambition to lead in semiconductor production faces a hurdle due to a shortage of highly skilled engineers. While local chip production could widen talent pools in the long term, immediate skill gaps remain. Tackling the evolving job skills requires an interim solution to address this deficit. Bridging the gap between academic learning and practical readiness is crucial, notably concerning specialised semiconductor tools that necessitate extensive and costly training.

Government intervention and initiatives

To bridge the skill gap, the government is investing in education, introducing specialised semiconductor courses across 600 institutions, forecasted to create 20 lakh job openings. Alongside this initiative, AICTE has rolled out new programmes focusing on design, logistics, and advanced communication technology, promising diverse career prospects and student incentives.

In response to the changing landscape of the Embedded systems industry, universities are offering upskilling programmes tailored for both students and industry professionals.

India's growing prominence in the semiconductor arena has attracted international institutions to provide training for semiconductor engineers. This not only fosters advancements in manufacturing, research, and design but also strengthens talent development and bolsters the resilience of semiconductor supply chains and their vital components.


The global chip shortage deeply impacted the embedded systems industry, causing disruptions in production and sectors worldwide. India's emergence as a semiconductor hub, backed by government initiatives, signals optimism. Yet, the sector faces a critical skill gap, amplified by the intricate nature of semiconductor technology. Urgent solutions like focused training and industry-education partnerships are vital. Government investments in education and upskilling show promise, complemented by international contributions to India's semiconductor ecosystem.

The pandemic reshaped the engineering workforce, normalizing remote and hybrid work. This shift opened doors for companies, tapping into a global pool of embedded software engineers to address the skill gap. Contractors and adaptable solutions are crucial in addressing the immediate talent shortage and driving innovation and growth. Collaboration among stakeholders remains pivotal to steer through challenges, ensuring the embedded systems industry maintains its lead in technological innovation.

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Topics: Others, Skilling

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