India’s Semiconductor Industry Set To Create 1 Million Jobs By 2026

India’s emerging semiconductor sector is on track to generate up to 1 million jobs by 2026, according to a recent report by talent solutions firm NLB Services. The projected job growth spans the full semiconductor value chain, with 3,00,000 jobs anticipated in fabrication roles and 200,000 in Assembly, Testing, Marking, and Packaging (ATMP) functions.

The sector has seen rapid advancements in government approvals for semiconductor projects across the country. In a recent example, Uttar Pradesh approved semiconductor projects worth approximately ₹32,000 crore, while West Bengal is also expected to announce its own semiconductor policy soon. Among notable private sector contributions are Tata Electronics’ collaboration with PSMC for a chip project in Dholera, Gujarat, and an assembly and test facility by Tata in Assam. Companies like CG Power, Kaynes, Adani, and Micron Technology (which recently received Cabinet approval for a project in Gujarat) are also joining the effort to expand India’s semiconductor capabilities.

Sebastian Schaal, Founder and Managing Director at electronics supply chain platform Luminovo, estimates the global annual spending on electronic components and manufacturing services at $2 trillion, with continuous growth in demand.

The PTI report highlights that some of the key roles expected to drive India’s semiconductor sector include Process Integration Engineers, Wafer Inspectors, Technical Specialists, Design Engineers, and Quality Control Specialists. Given the sector’s job growth projections, workforce development will be crucial to India’s semiconductor ambitions. NLB Services CEO Sachin Alug emphasised the need for India to upskill half a million individuals each year to meet its target of 1 million skilled workers by 2026, underscoring high-quality education as essential to building a robust talent pipeline.

In parallel, the global semiconductor industry is also experiencing growth. Market research firm Stratistics MRC values the global semiconductor fabrication materials market at $69 billion in 2024, with a forecasted increase to $104.6 billion by 2030. Meanwhile, Deloitte projects global semiconductor sales to reach $588 billion in 2024, marking a 13 per cent increase over the previous year, supported by a recovery in PC and smartphone demand.

This rapid expansion, both domestically and internationally, positions India to become a significant player in the global semiconductor landscape, provided that workforce and skill-building initiatives meet the rising demand.