India

The semiconductor industry is not new to India. Over the years, India’s semiconductor design industry has carved out a niche for itself on the global stage, and the Indian semiconductor ecosystem is now preparing to expand from design-only capabilities to include design, large-scale assembly, testing, manufacturing, and packaging. 

India’s semiconductor market is on an impressive growth trajectory, set to reach $64 billion by 2026. This growth is driven by rapid digitalization across various sectors, supported by the government’s push for self-reliance in electronics manufacturing. Coupled with a $10 billion commitment under the India Semiconductor Mission, the country is laying a solid foundation for substantial advancements in this vital sector.

The Unique Collaboration

The Netherlands, renowned for its semiconductor expertise and home to global industry leaders, is an ideal partner to complement and accelerate India’s ambitions. The Dutch semiconductor sector, a hub of innovation and cutting-edge research, benefits from a strong ecosystem that includes world-class R&D institutions and a thriving business environment conducive to growth and collaboration. 

The alliance between India and the Netherlands presents exceptional opportunities. For India, it is an opportunity to leverage Dutch technological expertise and innovation methodologies. For the Netherlands, it offers access to one of the fastest-growing semiconductor markets, which is rich in talent and offers great potential for R&D collaborations. Together, the India-Netherlands partnership in semiconductors can advance not only their economic and technological aspirations but also contribute to the stability and diversity of the global semiconductor supply chain.

Facts and Figures

• India as a Global Semiconductor Design Hub: Nearly 20% of the world’s semiconductor designers are based in India, making it the world’s semiconductor design hub. Most global companies have established their back-end design operations in India.
• Various Semiconductor Design Firms: India is home to a wide range of semiconductor design firms with diverse skill sets, sizes, and certifications. This provides an excellent foundation for Dutch firms to collaborate with.
• Government Incentives: The Indian government, together with state governments, is strongly promoting incentives to foster semiconductor design in India, making it an attractive proposition.
• Talent and Cost-Effectiveness: The availability of a large pool of highly skilled workers in India, combined with reasonable costs, provides a significant advantage for collaboration in this sector.

Networks

Indian support entities operating in the Netherlands 

• Embassy of India in The Hague
• Netherlands-India Chamber of Commerce and Trade (NICCT)
• Invest India
• Netherlands Foreign Investment Agency (supports Indian companies)
• India Center in the Netherlands

How can I connect with the Netherlands Innovation Network in India? 

The Netherlands Innovation Network (“Innovatie Attaché Netwerk” in Dutch) is part of the Dutch Ministry of Economic Affairs and operates in multiple countries with strong innovation capacity and/or potential. This network aims to enhance the Netherlands’ innovation capabilities by connecting global and Dutch innovation networks. The organization’s key focus areas are science, research, technology, and innovation. The Network operates in more than 17 countries, including three offices in India.  

Events

Commitment to the Paris Agreement

India has set ambitious goals under the Paris Agreement: reducing greenhouse gas emissions by 33–35% and achieving 450 GW of non-fossil power generation capacity by 2030. India and the Netherlands are working together to meet these targets.

Establishment of the Fast-Track Mechanism (FTM)

A Joint Statement to formally establish a bilateral Fast-Track Mechanism (FTM) between India and the Netherlands was signed on September 27, 2022, by the Department for Promotion of Industry and Internal Trade (DPIIT) and the Embassy of the Netherlands in New Delhi. This mechanism aims to facilitate investments by Dutch companies in India.

Tata Steel and “Green” Steel

On October 25, 2022, Tata Steel’s Dutch division reached a tentative agreement to supply Ford plants in Europe with “green” steel after 2030. Tata plans to begin producing green steel—steel made without the use of fossil fuels—at its Dutch facility in IJmuiden by 2030.

Joint Venture: LyondellBasell and Shakti Plastic Industries

LyondellBasell and Shakti Plastic Industries, India’s largest plastic scrap recycler and waste collection company, have signed a Memorandum of Understanding (MoU) to form a joint venture. This venture aims to build and operate a fully automated, mechanical recycling plant in India, designed to process post-consumer waste from rigid packaging and produce 50,000 metric tons of recycled polyethylene (PE) and polypropylene (PP) per year.

G20 Invitation Celebration

On December 1, 2022, Dutch and Indian representatives from the government and business sectors gathered to celebrate India’s decision to invite the Netherlands as a guest country to the upcoming G20. This event was a significant opportunity to promote business and investment relations between the two countries.

11th Foreign Office Consultations (FOC)

The 11th Foreign Office Consultations (FOC) between India and the Netherlands were held on December 19, 2022. Both sides discussed future directions in key sectors such as water, agriculture, and health (the WAH agenda), science and technology, climate innovation, and renewable technologies. Both sides recognized the relaunch of Free Trade Agreement negotiations and the connectivity partnership between India and the EU as key drivers.

Interesting reads:

Publications | GTI (globaltechinterface.com)

Semicon opportopportunity report

This report provides an overview of the Indian semiconductor sector, includes a stakeholder mapping, offers insights into the policy framework, presents a list of opportunities for Dutch companies, and explains why India is worth exploring as an investment opportunity in the semiconductor sector.