ICEA calls for action for India to lead semiconductor product design and IP creation

As India's ambitions in the realm of semiconductor manufacturing are taking a major leap forward, India Cellular & Electronics Association (ICEA) advocates India’s capability to be at the forefront of the global semiconductor industry, specifically building semiconductor design and core IP creation in India.

ICEA has released a report on the semiconductor industry, highlighting the unprecedented opportunities and how India can navigate the challenges against the backdrop of evolving global geopolitics.

Pankaj Mohindroo, Chairman of ICEA, says, "As we navigate through a transformative era in electronics manufacturing and hi-tech technology, India stands at a pivotal juncture to redefine its role in the semiconductor value chain. Together, we embark on a journey marked by innovation, self-reliance, and global competitiveness, poised to make India a semiconductor powerhouse.”

ICEA emphasizes the need for fostering a robust design ecosystem stating that there is a critical need to develop a design ecosystem that encompasses the entire electronics value chain. This includes encouraging major Indian corporates and OEMs to delve into semiconductor design and core IP creation, thereby ensuring a vibrant domestic semiconductor design landscape.

Acknowledging the government of India’s Design Linked Incentive (DLI), there is also a need for significant governmental and policy support, recommending the inclusion of mask sets in DLI. ICEA says subsidizing the cost of mask sets by up to 80% for Indian design firms is proposed as a measure to facilitate the emergence of a strong Indian Intellectual Property Rights (IPR) framework. India should also consider innovative funding approaches to support the semiconductor design ecosystem. This includes treating semiconductor chip design/manufacturing as a strategic sector, thereby enabling access to low-cost funds and establishing a dedicated capital market system for the electronics and high-tech industry.

With the global shift in semiconductor manufacturing dynamics, particularly due to US sanctions on China, ICEA sees a strategic opportunity for India to advance into sub-14 nm technology nodes. The report suggests that India could leverage spare capacities, like TSMC's for 7nm technologies, to accelerate its entry into advanced semiconductor manufacturing.

ICEA also advocates for government investment in refurbished fabs, supporting burgeoning semiconductor design firms and fostering a skilled semiconductor workforce as essential steps towards building a self-reliant semiconductor ecosystem.

ICEA also states that there is an acute need for skilled personnel in the semiconductor sector, and calls for the development of industry-oriented curricula and comprehensive training programs. This will help equip the Indian workforce with the requisite skills to lead the country's semiconductor revolution.

The Union Cabinet had approved a financial outlay of Rs 76,000 crore in December 2021 for semiconductor and display fabs. Recently, the government has approved the establishment of semiconductor units for a semiconductor fabrication unit in Gujarat and two ATMP facilities, one in Gujarat and the other in Assam. In July 2023, the government approved US-based Micron’s ATMP plant in Gujarat as well. These developments, part of the comprehensive 'Development of Semiconductors and Display

Manufacturing Ecosystems in India' initiative represents strategic steps toward enhancing the country's semiconductor manufacturing capabilities and affirms the nation's commitment to securing a prominent position in the global semiconductor landscape.