India stands on the cusp of a transformative leap into the semiconductor manufacturing sector, a move anticipated to significantly diversify and enhance the nation's predominantly software-centric talent pool.
This transition carries immense significance for Vedanta and Foxconn, leading entities in a joint venture spearheading India's ambitious chip manufacturing objective. It also resonates deeply with global tech corporations eager to penetrate the Indian market and broaden their commercial footprints.
In a dialogue with DIGITIMES Asia, Akarsh Hebbar, the Global Managing Director of Vedanta's semiconductor and display business, sheds light on his firm's perspective regarding the anticipated metamorphosis of India's workforce and local talent cultivation.
Increased business and employment opportunities
The most obvious advantage that Vedanta sees is the increased demand for local suppliers. Semiconductors and display are at the core of an entire ecosystem. In the immediate vicinity of the fabs, several suppliers and partners will set up their units. Many of these may be small and medium enterprises.
"Then there is the spillover in the downstream electronics ecosystem. And, of course, upstream as well," Hebbar said. "There are so many possibilities. I believe we can build our own Silicon Valley around this. We believe that 80,000–100,000 direct and indirect jobs will get created because of the semiconductor and display fabs. And that is only the beginning."
The need for skill development
A semiconductor fab offers various job opportunities in semiconductor process and equipment engineering, process integration, clean room, technology transfers, design enablement, fab construction, total quality management, and multiple roles in support functions like HR, Finance, and ISC, to name a few.
"Because this is a new industry in India, it will involve training and learning," Hebbar said. "Like any other technology industry, continuous learning on the job will also be imperative. We will collaborate with top engineering colleges and institutes of higher education in India to develop customized certification courses and train our engineers and technicians."
The company plans to co-design specialized curriculum in semiconductor fab technology and introduce them to interested students or even working professionals. It will also collaborate with partners and suppliers for on-the-job training for specific roles.
Opportunities for Indian entrepreneurs
Semiconductors are the basic building blocks for all things electronic. Display glass comes next. Most electronics devices, including wearables, automotives, appliances, and industrial systems have both these components.
"By setting up fabs for semiconductors and display glass, we will establish the foundation of a robust electronics manufacturing ecosystem in India," Hebbar said. "We will be the nucleus around which all ancillary industries will come up. In our estimation, there is an $80 billion opportunity for such industries in terms of components supplies and services, equipment supply, raw materials, EPC packages, operations and maintenance, etc."
Hebbar emphasized that Vedanta is ready to play a key role in supporting any company keen to join this growing electronics hub. Recently, they travelled to Korea to rally ecosystem partners to invest in India. This trip resulted in 20 Memorandums of Understanding (MoUs) being signed with Korean companies in the display sector. These companies are set to team up with both budding and seasoned Indian firms for a range of business opportunities.
Increasing affordability, accessibility, and innovation
Hebbar contends that setting up businesses in proximity to Vedanta's semiconductor and display factories will pay dividends for ecosystem players, promoting localized electronics manufacturing. The domino effect would ensue once startups commence the production of local electronic brands, including TVs, laptops, tablets, and mobile phones, effectively driving down the cost of such items for consumers. In turn, this strategy could pave the way towards making electronics more affordable for everyone.
"It will open up a world of opportunities – especially for children and the youth," Hebbar said. "This will also give the Digital India initiatives a push. Vedanta is completely aligned with the Hon'ble Prime Minister's Make in India and Atmanirbhar Bharat vision. By laying the foundation for what is the core of the electronics industry, we will not only help give an impetus to domestic manufacturing and exports, but will also foster innovation, R&D and technology development."
Final word
India is preparing for a significant semiconductor manufacturing expansion. Companies such as Vedanta and Foxconn are in the vanguard, anticipating substantial development and innovation. For the local talent and businesses, this means several opportunities to acquire new skills, improved accessibility to technology and a boost the local ecosystem.
This aligns well with India's intentions to enhance its digital technology and become more independent. India has taken a significant step by shifting its concentration from software development to the production of essential technology components such as semiconductors. The market could become more interesting as more companies enter in the coming days.
