“SEMI Is Actively Working With Indian Universities, Institutions To Create India’s Semiconductor Academy” – Ajit Manocha, President of SEMI

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India’s semiconductor industry is expected to face a significant talent shortfall, with a projected shortage of 250,000 to 300,000 professionals by 2027. In an insightful conversation, Ajit Manocha, President of Semiconductor Equipment and Materials International (SEMI), revealed to EFY’s Nijhum Rudra and Akanksha Sondhi Gaur, that while the country produces nearly a million STEM graduates each year, SEMI’s initiatives are focused on equipping this talent to meet the demands of fast-evolving sectors, such as automotive, healthcare, and artificial intelligence (AI).


Q. Can you highlight the current workforce challenge in growing India’s semiconductor industry?

A. The workforce challenge is a global issue, affecting every country. SEMI has several initiatives to help build the talent pipeline for students who are in the graduation phase, as well as for reskilling people from other industries or upskilling the current workforce. SEMI is working on multiple initiatives, and at SEMICON 2024 and Semicond India 2024, we worked on addressing the needs of two million workers over three days. SEMI has several programmes to support students in STEM fields; India produces close to a million STEM graduates every year. With the growing ecosystem of companies entering India, some will hire locally, while others may hire globally, helping to train and transform raw talent into ready-to-work professionals.

Q. What is the strategy of SEMI in addressing the potential shortage of 250,000 to 300,000 semiconductor professionals by 2027?

A. Although workforce challenges persist, there is a clear plan to address this issue. This plan is being shared with the government of India. I have also been in discussions with several IITs and universities. In the USA, we have American Semiconductor Academy (ASA-SEMI), a collaboration of 250 community colleges and universities with a SEMI-critical curriculum. This SEMI partnership brings an industry perspective to education, ensuring that students are job-ready on their first day of work. I am now working with Indian universities and institutions to create ISA, India’s Semiconductor Academy, which is currently in its early stages. SEMI is launching various initiatives to help India avoid the workforce challenges that many industries face globally.

Q. How can India reach the targeted number of skilled workers in this industry? How SEMI’s global strategy aligns with India’s ambitions?

A. The number is significant, but as I mentioned earlier, India possesses the raw talent—it’s simply a matter of training them. The recent announcement from Lam Research about training 60,000 workers highlights this commitment. In the initial phase, many professionals from other countries will likely contribute, such as in partnerships like Tata’s collaboration with Powerchip. In this case, Powerchip will likely send or retain experts to provide on-the-job training for Indian talent. While there may be short-term, tactical measures to bridge the current skills gap, we’re also laying a strong foundation to build a long-term talent pipeline. SEMI will play a vital role in this, ensuring that the right training is in place to prepare the workforce for the demands of the semiconductor industry. Everything will gradually fall into place as these efforts align with industry needs.

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Q. India’s young generation is more focused on developing software rather than hardware. In this regard, how India’s hardware manufacturing will grow?

A. India is recognised globally as a software powerhouse, and in areas like AI and software-enabled activities, it is poised to become a leader. The country’s thriving ecosystem of startups and significant investments in AI are already driving innovation. The next critical question is how to translate this expertise into practical applications across sectors like automotive, where India is also gaining momentum. As Prime Minister Modi highlighted recently, the growth in data centres is another crucial area where India can leverage its talent. While data centre infrastructure requires robust hardware, the software component is equally vital, and India’s strength in computing can be a significant advantage here.

The future of computing will demand skilled professionals across classical computing, edge computing, quantum computing, neural computing, and beyond. India’s talent pool can meet these technological demands. However, given the global talent shortage, developing specialised, dedicated programmes that prepare students and professionals for these diverse segments is important. This proactive approach will ensure that India stays competitive in emerging technologies, addressing both the immediate and long-term needs of various industries.

Q. What are the kind of degrees and the institutions being targeted?

A. The workforce composition, where one-third will require advanced degrees like Master’s and PhDs in fields such as material science, chemical engineering, and electronics, and two-thirds will consist of technicians from vocational colleges like ITIs (Industrial Training Institutes), is a solid framework for building a comprehensive talent pipeline. At the same time, the more highly educated workforce will focus on design, research, and managing complex systems. As you mentioned, in the US, these technicians typically come from community colleges, serving a similar role as India’s ITIs.

Q. What are the various ways in which SEMI is offering adaptable training programmes to bridge the talent gap in the industry?

A. The rise of AI and other advanced applications will also require more specialised education and training programmes, highlighting the industry’s unwavering commitment to continuous skill development. The 700 courses SEMI offers, both in India and globally, are a testament to this commitment, providing the necessary education and training to support this evolving landscape. This modular approach, where educational programmes can be tailored to meet the specific needs of a country’s workforce, is a key strategy in ensuring that India, and other nations, have the right talent for the semiconductor industry. India can build a resilient, future-ready workforce by focusing on STEM education, vocational training, and specialised courses for emerging technologies like AI. SEMI’s commitment to supporting these efforts by offering adaptable training programmes will help bridge the talent gap and ensure that India’s semiconductor units have a well-prepared and diverse workforce.

Q. Why is there no semiconductor focus on eastern states such as Jharkhand, Chhattisgarh, West Bengal, Bihar where a huge chunk of skilled potentials could be available?

A. I have observed that some Indian states are stepping up with semiconductor-focused policies, which signals that the momentum has shifted. The states are becoming aware of the strategic importance of semiconductors, and we’re seeing internal competition as they strive to become hubs for this crucial industry. This growing awareness, however, is not just limited to India. Globally, the significance of semiconductors wasn’t fully appreciated until the last few years. Before the pandemic, the critical role of semiconductors in modern life was often overlooked. As states in India become more conscious of this, we can expect others who were slower to act to catch up quickly. The shift in awareness is timely, and the global and domestic momentum is moving in the right direction. This will help position India as a key player in the semiconductor industry, with a strong policy focus across multiple regions.

Q. Do you think India’s $10 billion semiconductor scheme is sufficient to attract large-scale global investments when compared to the USA’s $52 billion CHIPS Act?

A. At this moment, we should not be comparing countries like A with B or C. Each nation needs to develop its own strategy and move at a pace that aligns with its unique circumstances and goals. With the industry growing from $600 billion to a projected $1 trillion in the next seven years, the demand for innovation and capacity is unprecedented. The key here is not just to spend as much as possible but to spend wisely, making smart investments that bring long-term results. Rather than focusing on competition between countries, the real challenge is ensuring that the world, as a whole, is prepared to meet this growing demand.

Q. Following the path of the USA’s restrictions and export ban, China, too, has decided to ban the export of germanium to other countries. How will this geopolitical scuffle affect the global growth of chips?

A. We must emphasise the need for diversification and redundancy in the semiconductor supply chain. While the restrictions on critical minerals like germanium and indium will undoubtedly impact the industry, alternative sources for these materials could step up to fill the gaps. As the industry is expected to double in size over the next few years, it’s clear that relying on a limited number of hubs is not sustainable. To manage the growing demand and mitigate risks—whether they stem from geopolitical tensions, climate issues, or other disruptions—it’s essential to establish multiple semiconductor hubs across various regions. This would create the necessary redundancies so that the industry can shift production to other locations without severe disruptions if one country faces challenges. The interconnectedness of the global semiconductor industry is both a challenge and an opportunity, and the efforts to create a robust blueprint for the future are critical in ensuring its long-term sustainability.

Q. Can you shed some insights into SEMI’s upcoming strategies and the role of strategic partnerships in ensuring a sustainable and resilient supply chain?

A. We have to highlight the shift from the ‘just-in-time’ (JIT) philosophy to the ‘just-in-case’ (JIC) approach in the semiconductor supply chain. While JIT worked well for many years, offering cost-efficiency and lean inventories, the events of the last few years—especially the disruptions caused by the pandemic, geopolitical tensions, and climate challenges—have exposed the vulnerabilities in this model.

Companies and governments recognise that the price of preparedness is necessary to avoid the much higher cost of future supply chain breakdowns. In summary, the JIC approach, while more expensive in the short term, is essential for ensuring long-term stability and preventing the kind of widespread disruptions that have impacted industries worldwide. As you mentioned, revisiting and redesigning the semiconductor supply chain is crucial for the industry’s resilience.

Q. By 2030, what is the total number of fabs, ATMPs, and OSAT units you are expecting in India?

A. While it may not reach 50 new fabs by 2030, having 5 to 10 more would still be a significant achievement and a major milestone for the country’s semiconductor ambitions. India’s focus on the automotive sector is well-placed, given the strong presence of automotive companies and the growing demand for semiconductors in electric vehicles, autonomous driving, and smart vehicle technologies. I am very optimistic India will reach the target of $110 billion by 2030, or even more than that.

Q. Which are the new areas where semiconductor demand will be augmented?

A. Another crucial area of focus is healthcare, particularly smart healthcare. The role of semiconductors in medical devices and healthcare technology is to be considered. From wearable health monitors to advanced imaging equipment and personalised medical devices, semiconductors are the backbone of these innovations. The integration of AI, sensors, and connectivity in healthcare devices is revolutionising patient care, enabling real-time health monitoring, early disease detection, and more effective management of chronic conditions. India’s commitment to focusing on these sectors will not only bolster its semiconductor industry but also contribute to improving healthcare systems domestically and globally.


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