India’s Semiconductor Growth: Leveraging Talent Development and Strategic Investments
As India emerges as a key player in semiconductor manufacturing, this transformative leap demands not only substantial capital investment but also a highly skilled workforce. Semiconductor manufacturing is a complex, specialized field, and there exists a significant skill gap in the Indian market to meet these technical requirements. During an interaction with Vidushi, Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship discussed India’s strategic development in the semiconductor industry through Tata Electronics’ new facilities in Gujarat and Assam, focusing on the opportunities, challenges, and necessary skills for success, along with the role of apprenticeships and public-private partnerships in addressing the skill gap and enhancing global competitiveness.
1.How will Tata Electronics’ new semiconductor facilities in Gujarat and Assam position India globally?
India’s rapid emergence as a semiconductor manufacturing hub, fueled by initiatives such as Make in India and the Production-Linked Incentive (PLI) scheme, is catalyzing significant investments, expanding the nation’s talent pool, and establishing crucial infrastructure. With over INR 1.5 trillion already funneled into the sector, India is cementing its status as a key player in the global semiconductor supply chain. The forthcoming semiconductor facilities in Gujarat and Assam, comprising a state-of-the-art fabrication unit in Dholera and an advanced assembly, testing, marking, and packaging (ATMP) unit in Morigaon, are projected to generate approximately 70,000 jobs, thereby creating substantial employment opportunities. This growth will enhance India’s vital contribution to semiconductor design, as the country boasts 32,000-35,000 engineers representing around 20% of the global design workforce. By integrating large-scale manufacturing with cutting-edge innovation and R&D, these facilities will enable India to effectively meet both domestic and global semiconductor demands.
To capitalize on this momentum, there is a pressing need to build a skilled workforce equipped to thrive in the semiconductor sector. Currently relying heavily on imported chips, these new facilities will help establish a domestic supply chain that diminishes foreign dependency. This localization will foster the development of upstream and downstream industries, including raw material suppliers and component manufacturers, creating a self-sustaining ecosystem. Additionally, collaboration between companies and academic institutions will advance semiconductor technologies while generating employment across various sectors, from manufacturing to logistics. As the semiconductor industry grows, the demand for skilled professionals will increase, emphasizing the importance of targeted training programs and educational initiatives. Continuous skill development will not only empower individuals to seize job opportunities but also enhance India’s competitiveness on the global stage. By investing in education and training, India can create a robust ecosystem that supports the semiconductor industry’s growth, contributing to the nation’s vision of becoming a leading semiconductor hub by 2030.
2.What challenges do you anticipate in sourcing skilled talent for semiconductor manufacturing?
India’s rapidly expanding electronics and semiconductor sectors face significant challenges in sourcing skilled talent, particularly as the semiconductor industry is projected to grow into a $100 billion sector by 2030. Despite this promising trajectory, the industry is expected to experience a severe skill gap of 320,000 to 350,000 professionals within the next 2-3 years, particularly in emerging areas like VLSI (Very Large Scale Integration) design, chip fabrication, advanced packaging, and research and development. These roles demand a high degree of technical specialization, encompassing semiconductor design, wafer manufacturing, and assembly, testing, marking, and packaging (ATMP) processes, which are currently lacking in adequate supply. Furthermore, the rapid technological advancements in artificial intelligence (AI), the Internet of Things (IoT), and 5G are compounding the challenge by increasing the demand for a more sophisticated, technically adept workforce capable of navigating these complex domains.
To mitigate this pressing skills deficit, innovative models, including apprenticeships, managed training services, and work-integrated learning programs, are being leveraged to cultivate a talent pool equipped with industry-relevant expertise. These models provide experiential, hands-on training that bridges the gap between academic knowledge and the technical requirements of semiconductor roles. Apprenticeships, in particular, are proving instrumental in developing specialized talent in areas like VLSI design and semiconductor packaging, by seamlessly integrating theoretical education with practical, on-the-job learning. Managed training services and work-integrated learning programs, facilitated through partnerships between industry leaders and academic institutions, ensure that training is both current and aligned with the latest technological advancements. These programs foster continuous skill development and upskilling, creating a pipeline of professionals who are not only job-ready but also well-versed in the intricacies of semiconductor manufacturing. Through these targeted initiatives, India is strategically building a robust, homegrown talent base that will be instrumental in meeting the long-term needs of the semiconductor industry.
3.Which specific skills are most needed for the successful operation of your semiconductor Units?
The successful operation of semiconductor units in India requires an advanced skill set, particularly in areas such as VLSI (Very Large Scale Integration) design, chip fabrication, photolithography, and advanced packaging, including Assembly, Testing, Marking, and Packaging (ATMP) processes. Emerging technologies like AI, IoT, and 5G further heighten the demand for expertise in semiconductor design and wafer manufacturing. The Indian government’s Rs 76,000-crore semiconductor incentive scheme, which encompasses projects like Tata Electronics’ chip fabrication unit and Taiwan’s PSMC, aims to bolster India’s position, but the prevailing skill gap presents a significant challenge. To address this, India is looking to collaborate with countries like Singapore, the US, the EU, and Japan through several MoUs focusing on technology transfers, R&D collaboration, and workforce development. These partnerships will facilitate reskilling and upskilling initiatives, providing Indian talent with access to global best practices in semiconductor design, packaging, and manufacturing. Key skills needed include proficiency in semiconductor materials, knowledge of fabrication technologies, and capabilities in testing methodologies and quality assurance processes. Moreover, expertise in emerging fields such as quantum computing, machine learning algorithms for semiconductor applications, and sustainable manufacturing practices will be essential to drive innovation and meet industry demands. By emphasizing skill enhancement in these critical areas and fostering global collaborations, India can cultivate a highly skilled workforce.
4.How does Tata Electronics plan to use apprenticeships to address the skill gap in semiconductor manufacturing?
Apprenticeships have emerged as a vital strategy for addressing the skill gap across various industries in India, providing a structured pathway for individuals to gain hands-on experience and develop critical competencies. In the past six years, India has trained more than 1 million apprentices, with a significant milestone of over 1 million apprentices trained in the last year alone through the National Apprenticeship Promotion Scheme (NAPS) and the National Apprenticeship Training Scheme (NATS). This impressive growth underscores a national commitment to enhancing skill development in sectors with high demand for skilled labor. By integrating apprenticeships into their workforce strategies, companies can effectively build a robust talent pipeline that aligns with their operational needs, which directly contributes to enhanced productivity. Apprenticeships foster a culture of continuous learning, allowing participants to acquire both theoretical knowledge and practical skills relevant to their roles. This structured approach not only improves the quality of the workforce but also boosts overall organizational efficiency, as trained apprentices can contribute to projects from day one, minimizing the learning curve. Additionally, these programs help reduce recruitment costs by creating a pool of skilled individuals who are already familiar with the company’s culture and operational processes.
Moreover, organizations see improved employee retention rates as apprentices often develop a strong sense of loyalty and commitment to employers who invest in their development. The Tata Group exemplifies this approach with its longstanding commitment to apprenticeship programs across various sectors, illustrating how businesses can effectively leverage these initiatives. By prioritizing continuous learning and skill enhancement, organizations can build a workforce in India that is well-equipped to navigate the challenges of a rapidly evolving job market. This strategic focus is essential for India’s overall economic development, promoting a culture of innovation and adaptability among employees. Additionally, by establishing pathways for lifelong learning and professional development, companies ensure that their workforce is prepared to adapt to emerging technologies and industry trends, driving sustainable economic progress and enhancing India’s global competitiveness.
5. What kind of hands-on training will apprentices receive to meet global semiconductor standards?
Apprenticeships have emerged as a linchpin to bridge the ongoing skill gap and build a skilled workforce in India’s growing semiconductor industry. To meet global semiconductor standards, it is essential to future-proof the workforce by providing hands-on training in crucial areas such as wafer fabrication, cleanroom operations, and semiconductor material handling. This practical training is vital for developing the technical expertise required to operate and maintain advanced equipment, ensure quality control, and implement efficient manufacturing processes in real-world environments. At TeamLease, we are leveraging apprenticeship programs under both the National Apprenticeship Promotion Scheme (NAPS) and the National Apprenticeship Training Scheme (NATS) to deliver targeted, industry-specific training for the semiconductor sector. The Electronics Sector Skills Council of India (ESSCI) has introduced over 35 specialized apprenticeship courses tailored to meet industry needs, focusing on essential areas like fabrication techniques, equipment maintenance, quality control protocols, and Industry 4.0 technologies. Over the last six years, we have witnessed a remarkable increase in the number of apprentices in the electronics industry, growing from 7,517 in 2019-20 to 91,948 in 2023-24. This growth not only underscores India’s commitment to building a skilled workforce but also emphasizes the importance of driving innovation in the electronics sector.
Furthermore, we at TeamLease have been at the forefront of developing our apprenticeship and work-integrated learning programs to strengthen this talent pipeline even further. By introducing advanced offerings, such as Post Graduate Diplomas in Total Quality Management and MBAs, we are collaborating with 22 universities to provide a seamless blend of theoretical learning and practical experience. This integrated approach enhances the learning journey, ensuring that apprentices are well-equipped to meet the demands of the industry. Notably, our apprenticeship programs boast an impressive 98% transition rate into full-time employment, reflecting their effectiveness in preparing individuals for successful careers. In conjunction with government support through initiatives like the PLI and DLI schemes, our apprenticeship programs under NAPS and NATS not only ensure that the Indian workforce can meet global standards but also contribute significantly to building a robust, skilled talent pool that is ready to drive the country’s semiconductor ecosystem forward.
6. How can public-private partnerships and government initiatives support skill development in the semiconductor sector?
India stands at a crossroads, facing the pressing challenge of bridging the persistent gap between education and employability—a divide that undermines the nation’s ability to fully leverage its vast demographic advantage. In this context, the semiconductor sector presents a critical opportunity for skill development, where apprenticeships and degree apprenticeships emerge as essential solutions, offering structured pathways that integrate academic learning with hands-on, industry-specific experience. These programs not only equip young individuals with the technical skills needed for their careers but also cultivate critical thinking, problem-solving, and adaptability—qualities essential for a productive workforce. To fully capitalize on this demographic advantage, we suggest that the government initiate comprehensive reforms that incentivize multi-stakeholder engagement, particularly through a shift from bilateral to tripartite agreements. This innovative framework introduces academia as a third partner, ensuring that educational institutions align closely with industry needs, co-creating curricula that respond to real-time demands in the semiconductor sector.
The tripartite model fosters seamless information exchange regarding workforce requirements, effectively addressing skill gaps. Emphasizing extended apprenticeship durations—structured as a 7-year 2+3+2 journey—mirrors traditional academic timelines, allowing apprentices to gain in-depth knowledge and practical skills essential for their roles. Furthermore, a modularity in the credit framework will enable seamless horizontal and vertical mobility among educational streams, facilitating continuity between certificates, diplomas, and degrees. We envision an educational model structured as one-third college, one-third employment exchange, and one-third ITI, integrating adult apprenticeships and additional pathways to create a holistic approach to skill development. To support this vision, we advocate for infrastructure improvements, such as a mixed delivery approach that combines online, on-site, on-campus, and on-the-job training, alongside a centralized apprenticeship portal that streamlines access to resources and opportunities. By embedding these strategic initiatives within the national skilling framework, we can foster a sustainable talent pipeline that addresses the current demands of the semiconductor industry while evolving to meet future challenges
7.What long-term impact do you see from a skilled local workforce on India’s global semiconductor industry competitiveness?
Skilling emerges as a pivotal force in shaping India’s future, particularly in developing a skilled, sustainable workforce that can propel the nation’s global competitiveness and close the talent gaps in vital industries like semiconductors. By scaling up apprenticeship programs, India can equip its workforce with cutting-edge technical expertise and foster a culture of continuous upgrading, reskilling, and upskilling talent. This approach will not only address immediate labor shortages but also create a robust framework that allows the workforce to stay ahead of technological disruptions and evolving market needs. A sustainable workforce, trained to adapt and innovate, will help India attract greater foreign investment, as global players increasingly seek regions that prioritize both environmental responsibility and a resilient talent pipeline. Furthermore, embedding sustainability into workforce development ensures India remains a key player in the global semiconductor supply chain, fostering long-term strategic partnerships with multinational corporations. As companies increasingly favor regions that balance technological progress with environmental stewardship, India’s emphasis on building a workforce that is both technically proficient and sustainably oriented—through upgrading, reskilling, and upskilling—will become a critical factor in securing its competitive edge on the world stage, driving growth across sectors and reinforcing its leadership in the global economy.
