How Automation and Workforce Development are Shaping Chip Production

By Shetal Mehta, Co-Founder of Suchi Semicon

Worldwide discussions on semiconductor chips often involve geopolitics and supply chain security. For India, it’s two things that are connected: increasing production by automating it and building expertise. It isn’t an industrial strategy alone; it is the foundation on which India will shift from being a consumer of technology to becoming a world producer. Development of a design center into a mass producer behemoth is based on synergy between cutting-edge machinery and human intellect. This is accomplished through enormous investments, 10 semiconductor ventures, most of which are in advanced stages of completion and operations. This growth positions India to dominate more than half of the global semiconductor business, which is forecasted to grow up to $1 trillion by 2030.

The Automated Core of Contemporary Production

The shift to local chip production is a technology revolution, spurred on by automation. Semiconductors are a precise and sensitive process that no other industry is. A dust particle can ruin a wafer. Thus, human contact at the most critical points in the process is not just wasteful but also dangerous. With India getting huge investments in a few projects, precision and sterility necessary for high yields are ensured by automation.

Apart from automated machinery, new plants also employ AI-driven software to optimise operations. These systems dug deep into massive amounts of production data, forecast possible equipment breakdowns in advance, and automate process adjustments to enhance quality and output. This phase of smart automation represents the contrast between a modern chip plant and its predecessor, enabling it to produce millions of units with precision far beyond what was achievable with traditional methods. These technologies not only make production more effective but also less wasteful and allow for a cleaner method of production by optimising the use of energy and resources.

Building India’s Talent Pipeline

Despite automation providing the capability for manufacturing, there must be a productive workforce for the same. The machines have to be developed, programmed, and maintained. Experts must decipher the data they produce to understand how to streamline production.

India has just one ace up its sleeve in fulfilling this demand through its excess of engineers. Specialised expertise for manufacturing semiconductors, however, is in high demand. The industry is said to need a new generation of professionals in areas of mechatronics, statistical process control, and advanced materials science. A report by TeamLease Degree Apprenticeship predicts a shortage of 250,000 to 300,000 professionals in the sector by 2027. To counter this, the government’s India Semiconductor Mission (ISM) is sponsoring the skilling of 85,000 engineers in semiconductor streams.

Educational institutes are leading the charge. They collaborate with industry to develop industry-specific curriculum and provide access to industry-specific tools. For instance, the India Semiconductor Workforce Development Program (ISWDP), which is a collaborative program of the India Institute of Science (IISc). Similarly, the National Skill Development Corporation (NSDC) joined hands with IIT Mandi and NorthCap University to launch a B.Tech in semiconductor technology and design. Such collaboration typically involves international academic experts and industry participants and must bridge the skills gap through experiential, industry-connected education. Electronics industry apprenticeships increased more than twelve-fold from 2019-2020 to 2023-2024, proving an unmistakable interest in work-integrated learning.

The Synergy of Machine and Mind

The future of India’s semiconductor industry will lie neither in automation nor in human ability but in their synergy. Automation is transforming the nature of work towards critical thinking, analysis, and problem-solving, and away from labor. It is transforming its workforce into a higher-value knowledge-based one.

With new plants springing up across the nation, they will need engineers who can drive sophisticated automated equipment and use AI data to optimise efficiency. This balance is a self-strengthening loop: automation maximises plant output, creating demand for highly skilled engineers and technicians who drive technology advancement. New professional paths emerging are not only conventional engineering but also disciplines such as AI/ML hardware, hardware security, and sustainability management.

The government’s pluralistic agenda, such as providing monetary assistance for new manufacturing activities and subsidising skill building, is designed to promote this synergy. It has further utilised approximately Rs 62,900 crore of the Rs 76,000 crore India Semiconductor Mission corpus on ongoing projects. The goal is to build a sustainable ecosystem where there would be innovation. This policy is making India an acceptable member of the global supply chain, a position that is in greater demand as nations seek to diversify sources of high-stakes technology.

The Path to Self-Reliance

The bottom-up effort India is making today, combining high-tech automation with creating a new generation of skilled workers, is a careful step towards defining the country’s technology destiny. By accepting investments in equipment as well as men and women, India is not simply building factories; it is creating a viable, long-term business.

Success of the undertaking will be measured in terms of more than the mere production of chips. This will encompass whether Indian companies can innovate, whether their own talent pool can innovate, and whether India is a dependable partner for the world. The fine balance between mechanisation and human progress will be the difference-maker to unlock India’s complete potential and establish India as a global leader in the semiconductor sector for years to come. As India sets up its capital-based factories, there is a strategic benefit that can be derived by integrating sustainability and security into their initial design, utilising cutting-edge technology to create a model of ethical manufacturing. This forward-looking approach makes the industry competitive and sustainable as well while adhering to global best practices.

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