New Delhi, July 17: The industry has announced that India’s Semiconductor 2.0 initiative could generate between 150,000 and 200,000 direct and indirect jobs over the next five years. This plan aims to elevate India’s electronics sector beyond assembly-based manufacturing, establishing it as a global hub for chip design, engineering, and innovation.
According to analysis by NLB Services, the next phase of the semiconductor mission will not be limited to manufacturing. It will focus on developing a comprehensive ecosystem that includes chip design, semiconductor verification, embedded systems, electronic design automation (EDA), AI-based manufacturing, advanced packaging, and intelligent supply chain operations.
This assessment comes after the recent approval of the Semiconductor 2.0 plan by the Union Cabinet, chaired by Prime Minister Narendra Modi, which has a budget allocation of ₹1.27 lakh crore. The objective is to further strengthen the semiconductor design and manufacturing ecosystem in the country.
Sachin Alug, CEO of NLB Services, stated that by 2030, around 70% of jobs related to the semiconductor and electronics ecosystem will evolve, leading to a significant increase in demand for highly skilled engineering professionals. He also projected that the number of Global Capability Centers (GCCs) focused on the semiconductor sector could grow by 25% to 30% by 2030, enhancing India’s reputation as a global hub for engineering, research, and innovation.
Alug noted that until now, India’s electronics manufacturing sector has primarily relied on assembly-based production. However, the Semiconductor 2.0 initiative will provide the country with the opportunity to advance in the value chain. It will develop capabilities in high-value areas such as chip design, fabrication, testing, and advanced packaging, leading to the creation of intellectual property (IP) and a sustainable competitive advantage.
Previously, the India Electronics and Semiconductor Association (IESA) reported that over $20 billion in semiconductor projects have been attracted under the Semiconductor 1.0 initiative. In contrast, Semiconductor 2.0 emphasizes fab units, advanced packaging, design, research and development (R&D), talent development, equipment, and raw materials to position India as a reliable global semiconductor partner.
The government aims to develop a semiconductor ecosystem based on six key pillars under Semiconductor 2.0. These include chip design, semiconductor manufacturing equipment and materials, fabrication facilities, ATMP/OSAT units, R&D, and talent development.
So far, the government has approved 12 semiconductor manufacturing projects, with a total investment exceeding ₹1.64 lakh crore.
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