Building India’s Semiconductor Ecosystem: Overcoming Supply Chain Challenges and Best Practices for Success

India is on a transformative journey to establish a strong semiconductor ecosystem and become a key player in the global industry. However, achieving this vision requires overcoming several challenges, including supply chain dependencies, infrastructure gaps, and the need for skilled talent.

This blog explores the essential factors India must focus on—such as strengthening its supply chain, enhancing infrastructure, fostering innovation, and ensuring financial and government support. By focusing on these key areas, India can build an attractive and competitive semiconductor ecosystem to become a global leader in this critical industry.

Develop a Reliable Infrastructure to Support the Growing Industry

• Developing a Domestic Supply Chain: Investing in local manufacturing of components and raw materials can reduce dependence on imports and enhance supply chain resilience.
• Power Supply: Ensure uninterrupted and high-quality power supply to semiconductor manufacturing facilities, which are highly sensitive to power fluctuations.
• Water Supply: Develop efficient water management systems to provide the large quantities of ultra-pure water required for semiconductor manufacturing.
• Logistics: Transportation infrastructure and logistics supply.
• Connectivity: Fab to be easily connected for the movement of goods and materials within the semiconductor ecosystem.
• Special Zones: Dedicated zones for semiconductor companies with special incentives and easy regulations.

Skill Development and Professional Human Resources

• Encourage and Subsidize Education and Training: Cooperation with universities and schools to develop a skilled workforce in semiconductor design, manufacturing, and testing.
• Collaborate with Global Institutions: Partner with leading international universities and research institutions to create joint programs.
• Attract and retain talent: Implement policies to attract skilled professionals from around the world and create a conducive environment for them to stay and contribute to the Indian semiconductor industry.

Strong Government Financial Support

• Central Government Support: The Indian government has already created ISM (India Semiconductor Mission) and committed significant funds; this needs to continue and potentially increase.
• Increase Incentives and Programs: Offer attractive incentive packages to companies across the semiconductor supply chain, including manufacturers, designers, and suppliers.
• State Government Support: Indian State Government to continue to align with Central Government incentive plans and increase incentives as above.

Fostering Innovation and R&D

• Startups: Provide funding and mentorship to startups working in semiconductor design and related fields
• Semiconductor Services: Support semiconductor service companies that deal with supply chain, skills development, and R&D.
• Research Centers: Create world-class research centers focused on semiconductor materials, design, and manufacturing technologies.
• International and Local Collaboration: Encourage collaboration between academia, industry, and government to drive innovation and accelerate the development of new technologies.

Other Challenges

• Geopolitical Factors: The geopolitical situation will impact the semiconductor industry. India needs to navigate these challenges effectively.
• Competition/Quality: The global semiconductor industry is highly competitive. Need to build the supply chain to a high industry standard and quality.
• Technology: Need to attract global industry players to get access to advanced technologies and intellectual property with strategic partnerships and joint ventures.

Conclusion

India’s semiconductor industry is at a turning point. By strengthening its supply chain, investing in talent, and fostering innovation, the country can overcome challenges and drive sustainable growth in the sector.

With 15+ years of expertise and a global team of 500+ engineers, Orbit & Skyline is a trusted partner in the semiconductor industry.

If you are looking for a semiconductor services and solution partner, reach out to us at hello@orbitskyline.com.