Unlocking the Potential: Skilling and Reskilling Initiatives for India’s Thriving Semiconductor Industry
The semiconductor industry in India is at its prime, with markets booming and phenomenal growth recorded across statistics owing to favorable market conditions, increased demand for electronic appliances, spearheading governmental initiatives and the rise of technologies such as AI, 5G and IOT. Key players like QUALCOMM, Nvidia, Intel and Samsung are emerging as the dominant powerholders in the Indian Semiconductor industry. According to Deloitte’s 2022 semiconductor industry outlook, the global semiconductor chip industry is expected to reach US$ billion in 2023.
In a highly technical field like that of semiconductor manufacturing, it only follows that a specialized skillset is of utmost importance. As technology continues to advance, there is a growing need for workers with expertise in chip design, testing, and packaging. However, there is a shortage of highly skilled technical workers. According to a recent report by the Indian Semiconductor Association, only 2% of engineering graduates in India are employable in the semiconductor industry, highlighting the need for more training and skilling programs. To bridge the skill gap, the Government of India has taken several initiatives to facilitate the development of the semiconductor manufacturing sector through measures such as establishing 200 electronic manufacturing clusters.
A lack of relevant academic programs and training opportunities in India is inversely proportional to the demand for highly skilled labour across the manufacturing sector. A paucity of talent can also be owed to high agility among tech jobs and rising competition among stakeholders in a niche field. The National Institution for Transforming India (NITI Aayog), a policy thinktank under the Indian central government, has suggested in a draft report that a policy be adopted to provide a tax holiday for ten years to firms investing US$1 billion or more that also create 20,000 jobs.
However, according to a 2022 Deloitte report, high demand for software skills to program and integrate chips into fast-growing markets will further exacerbate an already existing skills gap. As a result, companies compete fiercely to attract and retain top talent, leading to a shortage of skilled workers in the semiconductor industry. As research advances and newer methods in manufacturing emerge, defining a common standard for required skills is difficult. Compounded with the lack of standardisation identifying and recruiting the right talent also becomes difficult.
How do we then skill or reskill employees to meet this shortage? What is the right way to address the issue, and can India do it?
Through industry-academia collaboration, curriculum and training programs in academic institutions can be aligned with industry needs to bridge the skills gap. An effective upskilling strategy for employees to help them upskill and reskill can help organizations expand internally while continuing to look beyond their immediate workforce.
The increased implementation of Artificial Intelligence and Machine Learning in the semiconductor space alone could gain $35-$40 billion in value annually and are the most in-demand skills, according to a McKinsey report. Industry-academia collaboration can be enhanced to ensure that academic programs are better aligned with the needs of the industry. Finally, efforts to reduce the high attrition rate in the industry, such as providing better pay and benefits, can help to retain skilled workers. These measures can help address the shortage of skilled workers in the semiconductor industry in India and ensure the long-term growth and success of the industry.
As far the semiconductor design workforce is concerned, engineers are getting trained well. However, these opportunities to work on advanced nodes is limited to small number of people. Government initiative to create excellence centers to design in advanced nodes which support for tools and methodologies will go a long way to prepare design force to meet future demands in India and elsewhere.
Addressing the shortage of skilled workers in the semiconductor industry in India requires a multi-pronged approach. By taking the appropriate measures, India can bridge the skills gap, meet the demands of the industry, and ensure its continued growth and success in the global semiconductor market.
(The author is Dr. Venkat Mattela, Founder & CEO, Ceremorphic, and the views expressed in this article are his own)
