The semiconductor industry is currently engaged in fierce global competition, with several companies worldwide recognizing the pivotal role of chips in driving future growth and innovation. With plans for massive new factories announced worldwide, close to $1 trillion in investments from 2023 to 2030 is expected to reshape the industry’s dynamics and power balance.

In the semiconductor industry, prioritizing people is no longer optional—it’s necessary. India’s semiconductor sector is also booming due to the high demand for electronics, digitalization, and automation. However, ensuring a steady supply of competent employees poses a challenge. The industry must invest in education, innovation, attractive work environments, industry-academia collaborations, and diversity initiatives to address this. By putting people first, the Indian semiconductor industry can sustain growth amidst its technological transformation.

In this blog, we look at the present state of the Indian semiconductor industry, the talent gap, and the hiring and recruiting needs of the industry

Bridging the Semiconductor Talent Gap: India’s Role in Meeting Global Demand

The demand for skilled professionals continues to increase in the ever-evolving semiconductor industry. As per Deloitte, by 2030, there will be a requirement of over a million semiconductor professionals globally, meaning more than 100,000 recruits annually. With its vast talent pool of engineering students, India is expected to address the growing demand.

As per Statista, nearly 2.5 million students annually enroll in undergraduate engineering programs in India, and there are nearly 600,000 specializing in electronics. This pool of talent will help play an important role in meeting the increasing demand of the semiconductor industry.

India’s semiconductor sector – Current state and talent outlook

The Indian semiconductor industry is currently valued at approx. US$23.2bn is expected to reach a billion by 2028, with a CAGR of 17.10%. India is moving forward to establish itself as a leading semiconductor manufacturing hub and anticipates creating 1.2 mn jobs within the sector.

An in-depth analysis of year-on-year demand and growth across various sectors underscores the need for around 1.2 million skilled professionals within the country. Specifically, the chip design sector is expected to play a pivotal role, necessitating the recruitment of 275,000 individuals with diverse educational backgrounds, including undergraduates, diploma holders, master’s graduates, Ph.D. scholars, and postdoctoral researchers.

With a burgeoning population and a strong education system, India will emerge as an important talent hub within the semiconductor industry. This growth potential is expected to play an important role in addressing the shortage of skilled professionals.

The Indian Advantage: Semiconductor Design Talent and Global Impact

In recent years, India has become a prominent hub for semiconductor design, with a highly skilled pool of semiconductor design engineers. As per a study, Indian engineers constitute around 20% of the world’s semiconductor design workforce. There are over one lakh VLSI design engineers who work in both global semiconductor companies and also in domestic design service companies. These engineers are engaged in various crucial stages of the design cycle, including architectural design, specification development, physical implementation, manufacturing assistance, and post-Si testing and validation. Their contributions, both as part of global teams and independently, have been noteworthy, shaping the world of semiconductors worldwide.

Driving Forces Behind the Semiconductor Industry’s Talent Demand

Various technological developments are happening in the semiconductor industry, and the need for talent has been exponential. With new technologies like AI, IoT, and 5G, the digital space is undergoing significant changes, presenting unprecedented opportunities and challenges.

Here are a few factors contributing to the huge talent demand in the semiconductor industry.

The industry is experiencing rapid growth due to the increased usage of autonomous vehicles, mobile phones, and smart factory technologies. This, in turn, has increased the demand for highly skilled professionals
With all the technological advancements, companies seek specialized expertise in nanotechnologies, microelectronics, and materials science to develop cutting-edge components.
The need for skilled professionals developing AI hardware has increased as AI continues to be adapted in diverse sectors such as healthcare, automotive, and consumer electronics. With the growth of data generated by semiconductor devices, the expertise in this field has also increased. Companies are looking for professionals with interdisciplinary skills
There is intense competition for local and global talent as major technology companies and startups exert additional pressure on these demands.

Addressing the workforce challenges in the semiconductor industry

Recruiting for the semiconductor industry poses significant challenges because of the need for a specialized workforce proficient in IT and engineering skills. These include expertise in communication and networking, chip and circuit design, testing, and technology-specific development.

Regardless of the scale of the semiconductor company, whether small or major, one of the primary obstacles encountered is the need for a skilled workforce.

Semiconductor companies grapple with workforce-related issues such as talent acquisition difficulties, retention struggles, and maintaining organizational health.

How partnering with a staffing agency can help hiring challenges

Partnering with recruitment and staffing agencies is essential for addressing the unique hiring challenges in the semiconductor industry.

At Capleo Global, we understand that recruiting technically proficient people from the semiconductor industry is crucial for driving organizational growth. Our partnership ensures effective engagement with potential recruits, facilitating dialogue and aligning rewards with individual skill sets and industry standards. By focusing on these dimensions, companies can accurately assess employee progress throughout their lifecycle and benchmark their performance against industry leaders.