The semiconductor industry in India is at a crucial juncture. With increasing global competition and a growing domestic demand for advanced electronics, India’s push towards semiconductor self-reliance is a critical economic and strategic priority. At Accenture’s Semicon FutureCast 2024, CXOtoday caught up with Saurabh Kumar Sahu, Accenture’s India Business Head and APAC Council member, who shed light on Accenture’s role in bolstering the Indian semiconductor ecosystem and the potential for multifold growth in this burgeoning sector.
Why Semiconductors Matter for India’s Economy
L Subramanyan, publisher of CXO Today, noted Accenture’s recent acquisition of three semiconductor companies in India, prompting a discussion on the consulting giant’s broader strategy in this space. Saurabh explains that semiconductors represent the country’s next big wave of job creation, following the IT and digital sectors. India’s ambition to become a semiconductor powerhouse is backed by the government’s initiatives like the India Semiconductor Mission and Production-Linked Incentive (PLI) schemes aimed at boosting local manufacturing and incentivizing global players to set up operations.
Saurabh emphasized that the sector holds immense potential for multifold growth—especially in terms of job creation and local demand for semiconductor-based products. This demand stems primarily from industries like automotive, consumer electronics, and smartphone manufacturing. Major global players such as Intel, AMD, and Apple have either set up or are planning to set up operations in India, reinforcing the need for a robust semiconductor supply chain.
The Job Creation Potential and Educational Gaps
One of the key takeaways from the conversation was the significant job creation potential that the semiconductor industry can offer. Unlike previous waves of IT and digital jobs, Saurabh highlighted that semiconductor roles would be more niche, focusing on highly specialized areas like chip design, software testing, and the creation of digital twins. These jobs require highly skilled professionals, posing both an opportunity and a challenge for India.
A critical challenge, according to Saurabh, is the readiness of India’s education system. While India has a robust engineering talent pool, the current curriculum does not sufficiently cover semiconductor technologies. Saurabh stressed the importance of integrating semiconductor education into mainstream engineering courses, much like how computer science was emphasized during the IT boom. Public-private partnerships, updated curricula, and focused skill development programs are essential to creating a pipeline of talent for this sector.
Meeting Global and Local Demand
India’s position as both a consumer and supplier of semiconductors places it in a unique spot on the global stage. Saurabh pointed out that while countries like China and the U.S. grapple with semiconductor shortages, India is building capacity to meet both local and international demand. In addition to supplying to global markets, India’s local demand is driven by its fast-growing automotive sector, consumer electronics industry, and the government’s push to increase domestic smartphone manufacturing.
Saurabh also touched on the possibility of a “brain drain” in the sector, where highly skilled semiconductor professionals trained in India might seek opportunities abroad. However, he was optimistic that India could retain its talent by creating meaningful career paths and opportunities within the country, driven by both local demand and global partnerships.
Challenges and Opportunities Ahead
When asked about the key challenges facing India’s semiconductor self-reliance journey, Saurabh was candid. While capital for large enterprises isn’t a major issue, attracting investment and support for small and medium enterprises (SMEs) remains a challenge. These smaller players often operate on the fringes of the semiconductor value chain, focusing on niche components like testing and assembly. Saurabh believes that specific government interventions are needed to support these SMEs, similar to the PLI schemes designed for larger corporations.
In summary, India’s journey towards semiconductor self-reliance is fraught with challenges, but also filled with opportunities. By addressing educational gaps, attracting investment, and fostering public-private collaboration, the country is well on its way to becoming a global semiconductor leader.
With inputs from Accenture.
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