India is poised to become a major player in the semiconductor industry, leveraging its strong human capital. Lip-Bu Tan, a semiconductor industry leader, believes India should focus on chip design strengths rather than capital-intensive fabrication. The Indian government has launched the India Semiconductor Mission, attracting global investments. While building fabs is complex, India can start with niche areas before moving to leading-edge nodes. With strategic focus and addressing challenges, India can emerge as a semiconductor powerhouse.
In the ever-evolving landscape of the semiconductor industry, India stands poised to make a significant mark as a major player in the next wave of technological advancements. Lip-Bu Tan, a renowned voice in the multi-billion dollar chip industry, believes that India's human capital, which already fuels the success of technology giants like Intel, Qualcomm, and Nvidia, holds the key to unlocking this potential.
"India has the potential to rise and emerge as a major player in the next big semiconductor wave," Tan affirms. While fabrication can be a capital-intensive and power-guzzling endeavor, Tan suggests that India should focus on its strengths, such as chip design, to create value additions and establish its own homegrown semiconductor brand.
"Many Indian entrepreneurs are comfortable outsourcing IT designs, and India is seen as an outsourcing hub. However, I always encourage companies to focus on purpose-built silicon, which can truly showcase India's expertise," Tan explains.
The Indian government has recognized the strategic importance of semiconductors as the foundation of computing devices, and recent developments reflect a growing commitment to the industry. Tan is "glad that the Indian government realized the significance of semiconductors" and has launched the India Semiconductor Mission, which has already attracted investments from the Tatas, Murugappa Group, and American giant Micron, totaling nearly $18 billion.
Furthermore, global players such as Tower Semiconductors, Foxconn, and AMD, along with domestic IT services and engineering companies like HCL and L&T, are also making forays into India's semiconductor design and chip fabrication, further boosting the government's ambitious target of $300 billion in electronics exports by next year.
Tan acknowledges that building fabs is a complex endeavor, requiring significant infrastructure, consistent power, and water supply. He suggests that India should start with "feature-rich foundries" that focus on areas like mixed-signal, power management, and image sensors, before venturing into leading-edge node processing foundries, which require substantial investments.
The inclusion of tech giants like Apple, which has committed to diversify its manufacturing base beyond China, is seen as a "big win" for India's semiconductor aspirations. Tan emphasizes that securing committed long-term customers is crucial for the success of India's semiconductor ecosystem.
As the semiconductor industry evolves, Tan identifies several future growth drivers, including 5G and 6G mobility, hyperscale computing, cloud, automotive, edge AI, and Generative AI, which he believes will help the industry reach the $1 trillion mark even before 2030. However, he also expresses concerns about the industry's impact on climate change, highlighting the need for advancements in power management, cloud infrastructure, and memory innovation to address the growing energy demands of data centers and processors.
India's semiconductor journey is poised for a transformative phase, with the government's strategic focus, the country's talent pool, and the global industry's interest converging to create a unique opportunity for India to emerge as a significant player in the semiconductor landscape. By leveraging its strengths and addressing the challenges, India can capitalize on this momentum and solidify its position as a semiconductor powerhouse.
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