The rise of the Indian electronics industry is ahead of schedule

In Asia, Japan is a glorious old semiconductor powerhouse. China is a rising chip newcomer. India is a BRICS country that is eager to have a place in the semiconductor field and to fight for the rise.

Indian semiconductor market is growing

According to global economic data, India’s share of the global software outsourcing market was 51% in 2009 and further increased to 58% in 2012. As a country with more than one billion people, the demand for its electronic market can be imagined. Along with the demand of the Indian electronics market, it is bound to drive the development of semiconductor products.

According to data from the Indian Electronics and Semiconductor Association (IESA), the value of the Indian semiconductor component market is expected to reach $32.35 billion by 2025, growing at a compound annual growth rate of 10.1% between 2018 and 2025.

In fact, since 2005, India has begun to realize the future development opportunities of semiconductors and decided to develop chip manufacturing. However, due to the global financial crisis in 2008, this idea and related policies have been stranded. It was not until 2012 that India renewed its focus on semiconductors.

India’s Electronic Policy (M-SIPS) was announced in 2012. The policy covers various electronic industry sectors, including electronic components and semiconductors, defense electronics, automotive electronics, industrial electronics, strategic electronics, etc., and plans to set up 200 electronic manufacturing clusters (EMC).

The goal is that by 2025, domestic manufacturing will achieve $400 billion in turnover, clustering the entire value chain, directly or otherwise employing more than 100 million rupees, achieving a 32% growth rate.

In the 2017-18 coalition budget, the Indian government increased the allocation of incentive programs such as the Special Incentive Program (M-SIPS) and the Electronic Development Fund (EDF) to 745 million rupees ($111 million) to provide The development of semiconductors and electronics manufacturing.

Policy advance deployment in advance

In the past few years, although there have been many problems in the early days, India has been quietly trying to move toward local chip design because India regards local chip development as a strategic need.

In the case of India, the country is seeking to create a local fabless semiconductor design ecosystem and use local talent to help foster academic institutions and startups.

India's idea is to move from a microprocessor that relies solely on global technology companies such as Intel, AMD and ARM, and mobile phone chips from Qualcomm, Samsung and MediaTek to a parallel path.

Over the past 20 years, many global semiconductor companies, including ARM, Qualcomm, Intel, Cadence, and Texas Instruments, have built design and software development infrastructure here, helping to develop a number of key talents who understand chip development.

The government hopes to use these talents to help entrepreneurs work on chip design and fabless semiconductor ecosystems.

Taking advantage of this, several local companies and academia-industry incubators are rapidly evolving across the country to design and test chipsets, microprocessors, and related technologies for commercial use.

Driven by government-funded academic institutions and local technology entrepreneurs, this research and development effort focuses on promoting domestic manufacturing.

Support also includes a new policy announced in February this year that aims to make the country an electronics manufacturing center and provide special incentives for exports and high-tech projects including semiconductor facilities.

In short, the policy's main thrust is fabless chip design and strategic electronics research and development capabilities, including the pharmaceutical, automotive and power sectors.

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