The Indian semiconductor industry is expanding rapidly and is on its way to becoming a global hub. This expansion is evident in both the fabless design and manufacturing segments, including packaging, testing, and assembly. The recent announcements of new ATMP and fab units have energised the industry, bringing much-needed foreign investment to our shores. Moreover, these plants will collaborate with local partners, further boosting the local ecosystem and opening up the industry to the global supply chain. Both new and established companies are ramping up their resources to seize opportunities in the field.

On the fabless design side, India recently launched its first high-performance MCU. The growth in this sector is evident when examining the recently funded semiconductor firms and those approved under the Design-Linked Incentive (DLI) scheme, reflecting increased activity over the past 2-3 years.

While the semiconductor industry is known for its appetite for capital and talent, the former is finally becoming available, allowing the sector to thrive. However, a significant talent gap remains.

Talent as a key driver of semiconductor growth

According to a recent report from Deloitte, three primary industries—smartphones and wearables, automotive components, and computing and data storage—are set to drive the semiconductor market, collectively accounting for 60% of the demand. As the industry continues to grow, it is expected to generate employment opportunities for approximately 600,000 people globally by 2030. However, to seize these opportunities, the pressing issue of talent must be addressed.

The semiconductor supply chain requires skilled professionals across a wide spectrum—R&D, design, manufacturing, packaging, and testing. Without the right talent, India’s goal of becoming a global semiconductor leader may remain unfulfilled.

Preparing for the future

To address the talent shortage, semiconductor companies and educational institutions must collaborate. The first step is to spark interest in the semiconductor industry among engineering graduates. Young people must be encouraged to pursue careers in semiconductors through targeted marketing efforts.

In addition to inspiring interest, there must be substantial investment in skill development. Workshops, internships, competitions, and similar opportunities should be made available regularly to help young people explore the industry. Lectures and seminars from senior industry professionals can also provide valuable insights and experiences.

Companies will also need to partner with university placement cells to facilitate internships and job placements. Offering scholarships or sponsorships can further incentivise talented individuals to enter the semiconductor field.

Today’s talent is drawn to “cool jobs” and gravitates towards companies deemed “best places to work.” While salary and foreign placements were once the main attractions, factors like work environment now play a key role. Semiconductor companies, especially startups, have an opportunity to leverage this. As semiconductors are critical to modern life, particularly connected devices, highlighting their importance on social media platforms where young adults spend time can help attract talent.

Skills needed

Hard skills are essential for those interested in working in the semiconductor sector. Unlike IT, on-the-job learning is not sufficient. For example, a fab engineer needs proper training before taking on responsibility. An electronics engineering background is often necessary for design roles, though this is not a strict requirement.

As in any industry, a blend of hard and soft skills is necessary. While the technical skills vary by role, certain soft skills remain universal. For example, problem-solving, attention to detail, good communication, and teamwork are critical in every role. Additionally, semiconductor professionals must be adaptable, patient, and willing to upskill as needed.

India’s young and skilled workforce, with strengths in mathematics, language, and engineering, is well-positioned to meet the semiconductor industry’s talent needs—if we act with urgency.