Semiconductor sector now ranks third globally in profits, says SEMI CEO

Ajit Manocha says India must accelerate semiconductor development, build strategic capabilities, strengthen STEM education and develop talent for the next growth phase

Amid geopolitical tensions and surging demand for artificial intelligence (AI) chips, the global semiconductor industry has emerged as the third-most profitable major industrial sector, said Ajit Manocha, president and chief executive officer (CEO) of global industry association Semiconductor Equipment and Materials International (SEMI).

 

Speaking during a fireside chat on the theme, “Future of the semiconductor sector and its role in global development and productivity,” Manocha said, “The semiconductor industry is now number three in ranking in terms of profitability of all the industries. The reason for bringing this up is very important. We all now have learned a very hard way during Covid that semiconductors are very important for our lives.”

  

Manocha added that during the pandemic, dependence on devices like laptops and smartphones for purposes such as telemedicine and home schooling skyrocketed. “In addition, now we realise how important semiconductors are for drones, national security, and overall economic security and prosperity.” 

 

The broader opportunity, according to Manocha, extends to more industries and areas. He said that semiconductor technology is increasingly converging with automotive, healthcare and other sectors. “Semiconductors are important for humanity; for example, the technology can be helpful for someone who is specially-abled. We can potentially use it for disease prevention and gene editing, to avoid diseases and not just cure them,” Manocha said. 

 

According to Manocha, India is becoming a popular destination for semiconductor manufacturing and investments post the launch of India Semiconductor Mission in December 2021.

 

Based on the data available, India’s chip demand is doubling and is expected to reach $100-$110 billion by 2030. 

 

Manocha said India must accelerate development and progress in the semiconductor space. 

 

He added, “The message for India is to accelerate, build capabilities in strategically important parts of the semiconductor ecosystem, strengthen science, technology, engineering, and mathematics (STEM) education and develop the talent required for the industry's next phase of growth.”