Semiconductor mission’s great but academia can chip in

Presently, India ranks as the second-largest importer of semiconductor chips globally. Recent data presented in Rajya Sabha shows a staggering 92% surge in India’s chip imports over the last three years. Projections suggest India’s semiconductor consumption could surpass $80 billion by 2026 and $110 billion by 2030, underscoring the urgency of balancing trade deficits. While oil remains a significant import, semiconductors are equally crucial, and local production could stabilise the trade balance.

India Semiconductor Mission, (ISM) launched in 2021 with a $10 billion outlay, signifies a step in the right direction. Aimed at positioning India as a global semiconductor manufacturing hub, this mission transcends mere economic growth, embracing national security, technological sovereignty, and the future of India’s digital economy. Encouragingly, early successes are already evident, with companies like Micron, Tatas, and CG Power receiving cabinet approvals and making strides towards establishing chip manufacturing facilities in Gujarat and Assam.

By 2030, India aspires to capture 10% of the world’s $1.1 trillion semiconductor market, emerging as a significant player in this pivotal sector.

India has made remarkable strides in manufacturing over the past two decades, notably in the automotive and pharmaceutical sectors, alongside establishing itself as a major global player in IT services. While the automotive sector is poised to reach $200 billion by 2030, and the pharma industry is expected to touch $130 billion by the same year, these sectors exhibit limited innovation in terms of new products. Despite India’s standing as the world’s third-largest producer of pharmaceuticals by volume and its significant presence in the IT industry, breakthrough innovations remain elusive.

The primary impediment to innovation in these sectors lies in the lack of academia-industry collaborations. India ranks 3rd in the world when it comes to research publications, 6th for patent filings, and 9th for quality of research measured in terms of citations. In research areas such as Internet of Things (IoT) and sensors, Indian academia ranks in the global top 5. IoT markets are expected to touch a trillion dollars by 2032 as per multiple industry forecasts. Despite these tremendous achievements by academia, neither government nor industry is able to tap the significant innovation potential that exists in our academic institutions. India ranks 66th among 130 countries globally in academia-industry partnerships, with academia often relegated to a mere talent supplier rather than a source of disruptive ideas or technologies. Without robust academia-industry consortia, innovation stagnates, hindering the emergence of groundbreaking products akin to Tesla in the automotive sector or innovations like ChatGPT from the IT industry.

Taiwan boasts the most comprehensive semiconductor supply chain, exemplified by TSMC’s leading position in manufacturing. Taiwanese universities offer the most extensive range of semiconductor courses, facilitating comprehensive education, research and skill training in the field. They continue to upgrade semiconductor infrastructure in universities at regular intervals. This has not only encouraged more private-public collaborations in terms of research, but also helped alleviate the acute talent gap in the semiconductor industry. Even the US under the CHIPS act is investing heavily in establishing centres in academia. Biden administration announced over $5 billion from the CHIPS act for research and development involving academic institutions. ISM must also heavily invest in establishing academia-industry consortia, and integrate academia from the inception to harness its innovation potential fully. We boast of a reservoir of talent within our academic institutions, and harnessing it demands concerted efforts from both government and industry. A directed and coordinated approach is essential to channelling this talent towards nation-building endeavours rather than mere manpower training. Without such strategic alignment, Indian research risks perpetually operating in a ‘solution looking for a problem’ mode rather than actively addressing societal challenges.

ISM provides a prime opportunity to chart a new course, but similar initiatives are imperative across other sectors to realise India’s innovation potential fully.