India's semiconductor boom may create 10 lakh jobs by 2026, says report

There has been a marked interest in semiconductor projects in India, latest being UP's approval for projects worth around Rs 32,000 crore.

India's nascent semiconductor sector is poised to create 10 lakh jobs by 2026 across the entire value chain as per a report.

A report by talent solutions company NLB Services pegged the demand to come from a range of categories, with an estimated 3 lakh jobs in semiconductor fabrication, and 2 lakh jobs in chip ATMP (Assembly, Testing, Marking, and Packaging).

There has been a marked progress in approvals for semiconductor projects in India, latest being UP's approval for projects worth around Rs 32,000 crore. The state of West Bengal too is planning to come out with a semiconductor policy very soon. Aside of the Tata Electronics-PSMC chip project in Dholera, Gujarat, and an assembly and test unit by Tatas in Assam, more private players have come forward to take up the challenge. CG Power, Kaynes, Adani are among the leading private sector players stepping up in this field. America's Micron Tech has also got Cabinet's approval for a project in Gujarat.

Read More: Adani group lines up $3 bn for chip manufacturing foray

One estimate by Sebastian Schaal, Founder & Managing Director at Luminovo - a electronics supply chain platform - pegs annual global spend of $2 trillion on electronic components and manufacturing services, which he says is increasing.

PTI News carried the report, citing some of the key roles required in the semiconductor industry as Process Integration Engineer, Semiconductor Wafer Inspector, Technical Specialist, Preventative Maintenance (PM) Technician, Design Engineer, Process Engineer, Quality Control Specialist, among others.

Read More: Uttar Pradesh to attract semiconductor units, says Minister Vaishnaw

Given the demand, skilled workforce is going to critical in addressing this challenge. "To reach the target of having 1 million skilled employees by 2026 for India to become the semiconductor hub, India will need to upskill 5,00,000 talents every year," NLB Services CEO Sachin Alug said. High-quality education will form the bedrock for this, to ensure a solid talent pipeline, the report added.

A report by Stratistics MRC, a market research company, claims the global semiconductor fabrication material market is worth $69 billion in 2024, and is expected to reach $104.6 billion by 2030. The global semiconductor sales are likely to reach $588 billion in 2024, 13% higher than last year, according to a report by Deloitte. Both PC and smartphone sales are expected to grow in 2024, after falling last year, an important marker for the semiconductor industry, Deloitte said.