Industry expects 'Semicon 2.0' to create up to 2 lakh jobs in five years

India's semiconductor push is expected to create 1.5 lakh-2 lakh direct and indirect jobs over the next five years while transforming the country's electronics industry from an assembly-led manufacturing base into a global hub for chip design, engineering and innovation, industry said on Friday.

According to analysis of NLB Services, the next phase of the semiconductor mission will go beyond manufacturing and focus on building an integrated ecosystem spanning chip design, semiconductor verification, embedded systems, electronic design automation (EDA), AI-enabled manufacturing, advanced packaging and intelligent supply chain operations.

The comments come days after the Union Cabinet -- chaired by Prime Minister Narendra Modi -- approved the Semicon 2.0 scheme with a budget outlay of Rs 1.27 lakh crore to strengthen the country's semiconductor design and manufacturing ecosystem.

Sachin Alug, CEO, NLB Services, said nearly 70 per cent of roles across the semiconductor and electronics ecosystem are expected to evolve by 2030, creating strong demand for high-skilled engineering talent.

He expects a 25-30 per cent increase in semiconductor-focused Global Capability Centres (GCCs) by 2030, further strengthening India's position as a global engineering, research and innovation hub.

He noted that while electronics manufacturing in India has largely been driven by assembly operations, the scheme provides an opportunity to move up the value chain through capabilities in chip design, fabrication, testing and advanced packaging -- areas that generate higher-value intellectual property and long-term competitive advantage.

Earlier, IESA noted that Phase 1 had already helped secure more than $20 billion in announced semiconductor projects and that Phase 2’s greater emphasis on fabs, advanced packaging, design, R&D, talent, equipment and materials aims to make India a trusted global partner.

Under Semicon 2.0, the government aims to build the semiconductor ecosystem across six key pillars, including chip design, semiconductor manufacturing equipment and materials, fabrication facilities, ATMP/OSAT units, research and development, and talent development.

So far, the government has approved 12 semiconductor manufacturing projects with cumulative investments exceeding Rs 1.64 lakh crore.