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India’s Semiconductor Revolution: Seizing A Trillion-Dollar Opportunity By 2030
- India has a huge opportunity to emerge as a major player in the global semiconductor industry, which is expected to be worth a trillion dollars by 2030. The country is aiming to build a strong ecosystem for semiconductor production to attract domestic and foreign investment, and lower its reliance on imports.
- India's semiconductor market is currently valued at $23.2bn, and is expected to rise at a CAGR of 17.10% to reach $80.3bn by 2028. The country's efforts to develop a skilled workforce of engineers, technicians and R&D experts for the semiconductor industry is crucial for its growth.
- India's goal of achieving semiconductor self-reliance is not easy, however, and faces numerous challenges. The sector requires extensive resources like water and energy, which can be difficult to ensure, particularly in areas with unreliable water and utility systems. It also requires high upfront capital costs, which can deter investors.
- India's long-standing battle with bureaucratic inefficiency delays investment approval for semiconductor production facilities. Additionally, the country's energy infrastructure, particularly in important semiconductor centres, needs significant improvement, as India is prone to power shortages and outages.
- Developing indigenous knowledge and securing advantageous licences for technology at reasonable rates can help overcome the cost challenges for the industry. India must address structural challenges like skilled labour shortages and an uncertain tax regime if it wants to attract global semiconductor giants.
- The Indian government needs to focus on innovation and R&D, in addition to boosting manufacturing, to elevate India's position in the semiconductor industry. With a strong innovation ecosystem, India could position itself as a global leader in advanced technologies and reduce dependence on foreign vendors.
- By becoming a leader in the semiconductor industry, India can establish itself as a dominant player in international supply networks and secure its future in an increasingly technology-driven world.
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