Will India Achieve Semiconductor Self-Reliance by 2030?
Image credit X.com @PiyushGoyal
Despite billion-dollar fabs and government incentives, India’s semiconductor dream hinges on solving its critical talent gap in chip design, manufacturing, and R&D.
By SANJAY SINGH
NEW DELHI, September 21, 2025 — While the world is now witnessing a chip war that shapes the fragile geopolitics, the spotlight is on India’s pursuit to gain autonomy in semiconductor sector. But India is also facing the daunting task to find the skilled manpower that will hasten Indian ambition for chip leadership in the world.
Even as India is making all attempts to upscale its semiconductor manufacturing with announcement of producing its first ‘Made-in-India’ chip by the end of 2025, lack of skilled workforce could slowdown India’s semiconductor mission.
India currently employs about 220,000 semiconductor professionals, but the industry faces a projected shortfall of 250,000 to 350,000 skilled workers by 2027 across the semiconductor value chain.
Even India’s Skill India Mission is unable to meet the skill requirement, according to industry sources. This is despite the fact that India had unveiled the Skill India Mission in the first term of Prime Minister Narendra Modi.
More established specialized training programs in chip design, fabrication, and testing to build a skilled workforce is needed to scale up semiconductor growth in India, according to industry experts. This besides boosting R&D, supporting indigenous product design and develop intellectual property, enabling startups and smaller companies to compete globally.
Additionally, lack of a robust supply chain and infrastructure makes it difficult for semiconductor companies to set up manufacturing facilities in India. Secondly, the high cost of electricity and lack of skilled labour makes it less attractive for companies to invest in the country.
India imports more than 80% of its semiconductor requirements, primarily from East Asian countries like Taiwan, South Korea, and China. This dependence on imports not only exposes India to supply chain disruptions but also makes it vulnerable to geopolitical risks.
Also growing consumption of mobile devices, computers, and digital technologies, coupled with. the 5G rollout and AI adoption, is driving strong demand for advanced semiconductors.
India has emerged as the world’s second-largest market for 5G smartphones, trailing only behind China, holding a 13% share, behind China’s 32%.
What ails the chip-design sector is the crawling pace of the Indian technical institutions to rise to the challenge to impart skills to the youngsters. With research and training trailing, India faces an uphill task in raising an army of skilled manpower to rival the prowess of China and Taiwan to emerge the next chip destination of the world.
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