India's semiconductor ambitions received a boost from global management consultancy Bain & Company, which highlighted the country's unique positioning in the global race. According to reports from Business Standard, Balaji Thirumalai, Partner and India Head of Semiconductors and Electronics Manufacturing Practice at Bain & Company, emphasized that India's dual advantage of unmatched domestic consumer demand and an expanding demographic dividend gives the country a unique edge in the global semiconductor race. The central government's strategy under the Semicon 2.0 programme spanning six pillars of talent, fabs, OSATs (outsourced semiconductor assembly and test), design, equipment, and materials, is positioned as the necessary approach to establish a complete ecosystem.
Thirumalai highlighted India's distinct advantages over other emerging markets in Southeast Asia, pointing to captive domestic consumption driven by digitisation, combined with an available workforce for manufacturing operations. As reported by Business Standard, he noted that India offers a ready-made demand nation, not just a nation where we say we are offering subsidies, come build here. He explained that if you're building here, you can also serve the Indian market, in addition to building for the world, with no other country offering that kind of native in-built demand. The same upwardly mobile population driving demand also supplies the required workforce for manufacturing operations.
Addressing concerns over the availability of factory-floor technicians and cleanroom personnel, Thirumalai stated that the talent pipeline is being built alongside infrastructure. According to Business Standard, he explained that it takes 3-4 years to build a fab, by the time the fab comes up, whoever is building the fab and the government are putting together a plan to essentially say that this is the number of technicians that we need, so let's get them trained. He noted that we're getting them trained in Taiwan; we're getting them trained in India, drawing an analogy to the scale-up of Apple iPhone manufacturing in the country.
Beyond capital and labour, Thirumalai identified access to technology as the key structural gap requiring resolution. As reported by Business Standard, he described this as a call for action for multinational OEMs to partner with Indian firms and share technology and know-how. He explained that for us to build a fab or an OSAT or even bring in some material or chemicals for requires someone who has done that before to come and teach us how to do it, or partner with us. This represents a critical hurdle that needs to be bridged in India's semiconductor development journey.
On India's long-term standing in the global supply chain, Thirumalai cautioned that building scale requires time, noting that it took Taiwan and South Korea 35 to 40 years, and Japan 50 years, to build their industries. According to Business Standard, he emphasized that all the macro conditions and tailwinds are in favour of India, with India's policy focus targeting areas such as advanced packaging and compound semiconductors, while working to evolve into a 'product nation' that builds its own domestic brands over the next decade. He noted that global majors such as Lam Research and Merck are showing interest in India, indicating positive momentum in the sector.
