Surge In Demand For Semiconductor Courses, How Ready Are Indian HEIs

A leader in semiconductor production, the United States of America is anticipated to encounter a notable talent shortage in the upcoming years, shows a study presented by the Semiconductor Industry Association (SIA), in partnership with Oxford Economics. 

The study has estimated a shortfall of 67,000 skilled workers including technicians, computer scientists and engineers by 2030 and a gap of 1.4 million such workers in the broader US economy. The demand for semiconductors is predicted to increase significantly by 2030 and producers in the industry are planning to boost production to meet the demands. 

The chip manufacturing sector is vast and demands substantial resources, relying on skilled professionals throughout the entire process — spanning chip design, production, testing and packaging.

Experts believe that given its engineering talent, India has the potential to effectively address this gap with proper training.

On July 28, 2033, Prime Minister of India, Narendra Modi said, India is becoming a great conductor for the semiconductor industry and the government has identified more than 300 colleges where semiconductor courses will be available and India will have more than 1 lakh Semicon design engineers in the next five years.

Despite being in its early stages, the Indian industry currently presents approximately 8,000 vacant positions within the semiconductor sector across various job roles and hierarchical levels, as indicated by data released by a private company.

As per professionals in the field, India presently holds a workforce of approximately 125,000 engineers with bachelor’s, master’s or PhD degrees, actively engaged in diverse domains of chip design and advancement. Typically, individuals with a BTech degree in Electronics and Communication Engineering (ECE) or Electronics, an MTech in VLSI Design or a PhD in disciplines like Semiconductor Technology, Material Science, or Chemical Engineering are sought after for roles within companies specialising in VLSI (Very Large-scale Integration) design.

To fill this big gap of skilled workers in the semiconductor industry, the All India Technical Council for Technical Education (AICTE) recently announced, soon there will be more than 16,000 seats available for undergraduate, postgraduate and diploma-level courses on semiconductor technology and around 600 technical institutions, which will provide courses on semiconductors.

AICTE has already granted permission of opening 250 new engineering colleges and technical institutions recently after the moratorium was revoked by the AICTE as there was a ban on the opening of new engineering colleges across India, till 2024.

The ban on establishing new engineering institutes within the nation was enforced in response to the significant 45 per cent seat vacancy observed in engineering institutions across India in 2020. Nevertheless, exceptions were made for conventional disciplines as well as emerging fields in computer sciences like AI and machine learning, where additional slots were allocated.

In this scenario, it is important to ask whether the institutes that are preparing to offer a number of courses in the semiconductor technology are well-equipped with state-of-the-art laboratories and facilities. Are they following industry-standard curriculum and providing practical training? Also, as the demand for skilled semiconductor professionals is increasing, how are the industry players collaborating with these technical institutions? Are there any partnerships, internships or on-the-job training programmmes that will ensure the graduates are job-ready? 

India has a history of skilled professionals moving abroad for better opportunities. Whether the projected shortfall of workers by 2030 could lead to a brain drain from India. What measures should the industry take to retain talent within the country and incentivise them to contribute to the domestic semiconductor industry?

BW Education got in touch with institutes and industry players to understand their thoughts on the above points. 

Need for infrastructure

Dr Sunkara Srinivasa Rao, Associate Professor, Department of Electronics and Communication Engineering, KLH Bachupally campus, Hyderabad said, “Despite having a significant workforce and abundant natural resources, India has not yet positioned itself as a major semiconductor hub. There is a pressing need to outfit educational institutions with state-of-the-art laboratories and facilities for semiconductor research and application, as well as to revise the academic syllabus to align more closely with industry requirements.”

While Dr Manisha Joshi, Dean, BBA, IILM University, Gurugram believes that India excels in semiconductor research but lacks IC fabrication expertise, necessitating skilled personnel for intricate semiconductor fabrication processes. "This requires a dedicated course structure in IC manufacturing. Many universities have also come up with an idea for a diploma in Manufacturing in IC. This also requires state of the art laboratory," she says. 

Joshi further added that next-gen microelectronics demand progress in measurement, standards, materials  and manufacturing. A comprehensive programme offers high-paying roles in global and Indian firms, spanning private and government sectors.

Industry Academia collaboration

On the need for industry-academia collaboration to provide a promising career to the students of the field, Aditya Joshi, CEO, OpalForce, said that Indian semiconductor enterprises have been engaged in collaborative efforts with academia for research and development purposes for a considerable duration. A notable example is the 15-year-long partnership between IIT Bombay and a major global semiconductor Nano electronics equipment manufacturer. “Furthermore, esteemed foreign institutions have established semiconductor alliances with India, laying the groundwork for workforce enhancement, collaborative research endeavours and innovative pursuits,” he added. 

He informed, an MoU between the Indian Semiconductor Mission and Purdue University was signed in May 2023, emphasising cooperation, capacity building and research and development initiatives.

But on the other side, Rao said, “Current reports suggest that there are many uncertainties surrounding the future prospects of this industry-academia semiconductor collaboration. India is still in the early stages of cultivating these partnerships and internships, which aim to ensure graduates are well-prepared for careers in the semiconductor manufacturing industry.”

Dr Manisha Joshi Said that currently, semiconductor manufacturing is nearly non-existent in India, thus, offering a substantial opportunity to reduce imports. Various leading Industries such as IBM, and STMicroelectronics, Hitachi High-Technologies Corp etc. are ready to Invest on a very large magnitude in India to set up India's first chip-making facility.

She believes, “Looking at the demand and the opportunities this may be one of the highest-paying jobs in times to come. However, these require skilled manpower who can handle complicated processes in the semiconductor fabrication area.” 

“The Indian government is promoting various schemes in this sector and hopes to attract a total investment of around 25 billion USD. This presents numerous opportunities for the younger generation. The objective of this program is to position India as a pivotal player in the global semiconductor supply chain,” added Rao. 

Brain drain from India

However, with the global demand for skilled workers in the semiconductor industry arose a fear of talent migration from India to outer countries at a large scale. Retaining our own talent is one of the challenges of the industry as India is trying to become a global hub in semiconductor manufacturing. 

On this, Aditya Joshi said, “India's semiconductor sector has witnessed a trend of skilled professionals seeking opportunities abroad, raising concerns about a potential talent drain from the industry by 2030. To address this challenge and foster the retention and upskilling of semiconductor experts, the industry should adopt tailored strategies that encourage these professionals to stay and contribute to the growth of the domestic semiconductor landscape.”

While Manisha Joshi said that People relocate for reasons like improved livelihoods and living standards. “According to the World Bank, over 247 million individuals reside in a country other than their birthplace,” she added. 

Aditya Joshi presented ten points solution to retain talent in India: 1: Upskilling Initiatives, Industry-Academia Connect, Recognition & Awards, Innovation Funding, Global Skill Exposure, Government Support for Skill Development, Work-Life Balance Initiatives and Entrepreneurship Opportunities.

He believed that by implementing these tailored measures, the semiconductor industry can cultivate a skilled and motivated talent pool, mitigate the brain drain challenge and establish India as a hub for semiconductor expertise and innovation.

While to Manisha Joshi, periodically reviewing salaries and benefits to ensure they reflect employee contributions and creating a workplace environment where employees feel comfortable can successfully tackle this challenge. 

Inclusion of new technology

In the ever-evolving landscape of semiconductor technology, technical institutions and industry players are actively embracing advancements like AI and machine learning to keep pace with the rapid transformations.

Experts believed that this convergence between AI and semiconductors has ushered in a wave of innovation and efficiency, reshaping the industry's dynamics. Chip design, bolstered by AI, is experiencing shorter cycles, reduced costs and quicker time-to-market. These improvements ripple into real-world applications such as autonomous vehicles, facial recognition systems & 5G devices, redefining retail, security and customer experiences.

This progressive drive is evidenced by notable collaborations, such as the partnership between Meta and 'India AI,' demonstrating a commitment to advancing AI's frontiers. Additionally, IIT Kharagpur's technology innovation hub underscores India's dedication to translating academic research into commercially viable products, propelling technology and commerce forward. 

As technological institutions and industry leaders grapple with swift advancements, embracing emerging technologies is the only path forward. The semiconductor industry's adaptation to AI and other innovations is essential for chip development, quality assurance, and cost optimisation. Amidst this journey, observing technology shifts and utilising them to simplify tasks, enhance product quality and minimise costs are paramount. As digital transformation accelerates, the semiconductor sector's embrace of innovation ensures a future characterised by cutting-edge progress and prosperity, say experts.