The semiconductor industry in India is developing, but it faces challenges such as underdeveloped supply chains, lack of skilled manufacturing talent, and global competition. Despite India's strong engineering talent and government support, the country still needs to improve raw material production and skill development to establish a competitive ecosystem.

Jeffrey's report points out that India's semiconductor industry is developing, but facing significant challenges such as underdeveloped supply chains, shortage of professional manufacturing talent, global competition, and rapid technological development. The report emphasizes that although India has several key advantages, including a strong engineering talent pool and government support, it must overcome obstacles to establish a competitive semiconductor ecosystem. The industry still needs to address challenges such as underdeveloped supply chains, limited professional manufacturing talent, intense global competition, and rapid technological development, "the report states

One of the biggest challenges is the limited supply of key raw materials such as silicon wafers, high-purity gases, specialty chemicals, and ultrapure water necessary for chip manufacturing. Despite India's developed chemical and natural gas manufacturing industries, especially in areas such as Gujarat and Dahghi, companies still need to improve their ability to produce semiconductor grade raw materials. The government prioritizes the development of a complete semiconductor supply chain, including chemicals, gases, and equipment, to reduce dependence on imports.

India has nearly 20% of the global semiconductor design workforce, demonstrating its strength in chip design. However, there is a gap in the professional skills required for semiconductor manufacturing and testing.

To address this issue, the report states that businesses are committed to skill development, and the government is collaborating with industry and universities to create courses for semiconductor manufacturing, assembly, and testing.

The report also pointed out that India is facing fierce competition from well-known semiconductor centers such as China, Singapore, Malaysia, South Korea, and Taiwan, which have spent decades building their own ecosystems.

With the increasing strategic importance of semiconductors and growing concern for supply chain security, many countries are providing subsidies and incentives to attract chip manufacturers. India has taken measures to attract investment and provide numerous incentives, which will help initiate semiconductor manufacturing projects.

However, establishing advanced manufacturing facilities brings risks, including initial production challenges, quality control issues, and achieving economies of scale. The success of the Indian semiconductor industry will depend on ensuring long-term demand for chips in both domestic and export markets.

Another major challenge is to keep up with rapid technological advancements. Although India is still establishing its first manufacturing plant, global semiconductor companies are constantly pushing the limits of chip miniaturization. As a latecomer, India may have to make significant capital investments to maintain competitiveness.

Despite facing these challenges, India's semiconductor industry still has the potential to achieve growth with strong government support, industry cooperation, and research and development investment. Establishing a complete semiconductor ecosystem is crucial for India to become a major player in the global chip industry.