Tamil Nadu Has the Talent Pool to Become a Semiconductor Hub

Tamil Nadu Has the Talent Pool to Become a Semiconductor Hub

The book Chip War, released in 2022, has emerged as the most incisive take on the global semiconductor industry. It has virtually no mention of India. Talking to TOI on the sidelines of the TN Global Investors Meet 2024, its author Chris Miller says if he writes the second part of the book, it may have a full chapter on Tamil Nadu. Excerpts: In your book, you talk about how semiconductor manufacturing involves companies and capabilities across multiple countries and no one country has been able to dominate it. When asked about India’s position in the industry, Miller acknowledges that companies are looking to shift manufacturing out of China and considers India’s potential. He mentions that India’s growing economy and lower costs make it an attractive destination for electronics manufacturing. He believes that India, particularly Tamil Nadu, will play a larger role in the semiconductor sector in the next ten years. Tamil Nadu is witnessing a substantial increase in its device manufacturing ecosystem and is emerging as a center for smartphone assembly, which is crucial for building a chip industry. Miller also highlights the presence of a talented chip design pool in Tamil Nadu. However, he notes that currently, most of the talent works for multinational companies (MNCs) on their chips. He suggests that Indian chip designers need to find products for chips and build brands over time to become global players. Governments in India, as well as its states like Tamil Nadu, are providing significant subsidies to semiconductor companies to set up operations. However, Miller cautions that governments should carefully consider how much money they want to invest and where they want to allocate those funds. He notes that while governments often overestimate the returns from semiconductor manufacturing, the competition in the industry is global, and infrastructure, including specific manufacturing infrastructure, is critical for success. Miller’s advice for Tamil Nadu is to remain focused, realistic, and patient in their long-term goals for developing the semiconductor industry. He cites examples of Taiwan, Japan, and South Korea, which took decades to develop their electronics industries, as lessons for Tamil Nadu.

TIS Staff

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