India’s march toward technological self-reliance is nothing short of spectacular, driven by ground breaking advancements in semiconductor technology and electronics design. These twin pillars of innovation are catalysing a digital transformation across industries, positioning India as a global powerhouse in the semiconductor domain. From powering electric vehicles to enabling smart cities and revolutionizing healthcare, the symbiotic relationship between semiconductors and complete electronics design is redefining India’s technological landscape.
This story delves into the vibrant ecosystem of India’s semiconductor industry, spotlighting the contributions of trailblazing companies and the visionary government policies propelling the sector to unprecedented heights.
The Rise of the Silicon Superpower
In the words of Ramya Mohan, Vice President – Head of Corporate Strategy at Cyient, “The government’s approval of three new semiconductor fabrication units, valued at $11 billion, underscores a commitment to establishing a robust manufacturing base.” This development, coupled with initiatives like the Design Linked Incentive Scheme and the Semiconductor Mission, paints a promising picture for India’s aspirations in this high-stakes global industry.
India’s semiconductor market is on a meteoric rise, projected to exceed $60 billion by 2026. Fuelling this growth are initiatives aimed at fostering domestic chip design start-ups, attracting global players, and creating a skilled talent pool. The result? A burgeoning ecosystem ready to compete on the world stage.
One remarkable achievement is the domestic production of 4-inch silicon carbide (SiC) wafers. These are critical for high-performance applications, such as electric vehicles (EVs) and renewable energy systems. According to Yuvraj Shidhaye, Founder and Director of TreadBinary, “India’s semiconductor advancements, supported by the Semiconductor Mission and Production Linked Incentive program, are paving the way for a robust manufacturing ecosystem.”
Semiconductors and IoT: Transforming Industries
The transformative power of semiconductors is best exemplified by their integration into IoT systems. These smart technologies are reshaping industries like automotive, healthcare, manufacturing, and agriculture.
In agriculture, IoT devices powered by semiconductors enable precision farming, increasing crop yields and optimizing resource usage. Similarly, healthcare is undergoing a paradigm shift with wearable devices and remote monitoring systems providing real-time patient data. “Semiconductor-driven sensors in healthcare are enabling remote care, particularly valuable in a country as vast as India,” observes Parth Pangtey, Director at PredCo.
The automotive sector is another area witnessing rapid change. Semiconductor-powered systems in electric and autonomous vehicles manage diagnostics, enhance safety, and optimize battery performance. With IoT’s role expanding into manufacturing, predictive maintenance and automation are minimizing downtime and maximizing productivity.
Cyient’s contribution to this domain is noteworthy. As Ramya Mohan shares, “Cyient’s acquisition of AnSem in 2017 brought expertise in ASIC turnkey offerings, enabling differentiation at the chip level for global companies.” This expertise in chip design services is pivotal in driving India’s progress in IoT-enabled solutions.
Challenges in Semiconductor Design and Manufacturing
Despite its strides, India’s semiconductor sector faces significant challenges. Shrinking device sizes, increased transistor densities, and the need for efficient thermal management create complex problems for electronics design companies.
As Aarohi Desai, Associate Director of Product Marketing at eInfochips, notes, “Higher transistor densities lead to increased heat per unit area, making it harder to dissipate heat effectively.” Traditional cooling methods are becoming obsolete, prompting the exploration of advanced materials like gallium nitride (GaN) and silicon carbide (SiC). These materials offer superior thermal and electrical performance but come with their own manufacturing hurdles.
Balancing scalability with cost-efficiency remains another critical issue. The transition to smaller process nodes, such as 2nm and 3nm technologies, demands precision and innovation, often raising production costs.
Parth Pangtey highlights another perspective: “AI-driven design processes are helping semiconductor companies improve yield rates and reduce defects, but scalability challenges persist due to geopolitical tensions and supply chain constraints.”
Sustainability in Semiconductor Production
With the global spotlight on climate change, sustainability is becoming a core focus for the semiconductor industry. The demand for energy-efficient, eco-friendly chips is driving innovations in materials and manufacturing processes.
Wide-bandgap materials like GaN and SiC are at the forefront, reducing power loss and enhancing energy efficiency in applications ranging from renewable energy to electric vehicles. As Ramya Mohan notes, “Eco-friendly manufacturing methods, such as water-based processing, are gaining traction, minimizing emissions and toxic waste.”
India’s semiconductor industry is also embracing renewable energy sources to power its facilities, aligning with the nation’s environmental goals. Circular manufacturing practices, including recycling and reuse of materials, are gaining momentum, contributing to a greener production cycle.
Future Trends: Toward a Sustainable and Efficient Ecosystem
The future of India’s semiconductor industry lies in its ability to innovate sustainably. Key trends shaping this evolution include energy-efficient chip designs, advanced packaging techniques, and AI-driven process optimization.
- Energy-Efficient Designs
Chips designed for low power consumption are becoming critical in IoT devices, where extended battery life is essential. Edge AI chips, which process data locally rather than in the cloud, are reducing energy costs and latency. - Advanced Packaging
Technologies like 3D stacking and system-in-package (SiP) are optimizing space and thermal management, enabling compact yet powerful semiconductor solutions. These techniques enhance both performance and sustainability by minimizing material waste. - Circular Economy Practices
Recycling electronic components and adopting biodegradable materials are part of a broader push toward a circular economy. Companies are also exploring water recycling technologies, with some facilities achieving an 80% recycling rate in production. - AI and Digital Twins
By leveraging AI and digital twins, semiconductor companies are predicting and mitigating potential manufacturing defects, reducing waste, and optimizing resource use.
India’s Vision: Becoming a Global Semiconductor Leader
India’s semiconductor revolution is not just about technology—it’s about self-reliance and global competitiveness. The government’s investment in three new fabrication facilities reflects this vision. These facilities will support nodes from 28nm to 110nm, catering to diverse industry needs.
As Aarohi Desai aptly puts it, “The combination of AI, low-cost solutions, and a trained talent pool is enabling India to create high-performance IoT systems that meet global standards.”
Shaping the Technological Future
The interplay between semiconductors and complete electronics design is laying the foundation for a tech-driven future in India. The country is on the cusp of a transformative era, leveraging its talent, innovation, and policy framework to emerge as a global semiconductor hub.
As we look ahead, one thing is clear: India’s silicon dreams are not just about chips and circuits. They are about reshaping industries, empowering lives, and leaving a lasting impact on the global technology stage.
In the words of Yuvraj Shidhaye, “While challenges remain, the strides India is making today mark a transformative shift, positioning the country as a potential global player in the semiconductor space.”
India’s journey from an importer of semiconductors to a global innovator is well underway. With its vision set firmly on sustainability, efficiency, and innovation, the future of India’s semiconductor industry is as bright as the silicon it thrives on.
