India

The semiconductor industry is not new to India. India’s semiconductor design industry, over the years, has carved a worldwide niche and the Indian semiconductor ecosystem is now preparing to expand from design-only to design and large-scale assembly, testing, manufacturing and packaging capabilities. 

India’s semiconductor market is on an impressive 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 establishing 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, stands as 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’s an opportunity to leverage Dutch technological prowess and innovation methodologies. For The Netherlands, it offers access to one of the fastest-growing semiconductor markets, abundant in talent and potential for R&D collaborations. Together, the India-Netherlands partnership in semiconductors can advance not just 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 firms have established their back-end design operations in India.
  • Diverse Semiconductor Design Firms: India hosts a variety of semiconductor design firms characterized by diverse skills, scales, and certifications. This presents an excellent base for Dutch firms to collaborate with.
  • Government Incentives: The Indian Government, along with State Governments, are strongly pushing for incentives to facilitate semiconductor design in India, making it an attractive proposition.
  • Talent and Cost-Effectiveness: The availability of a large pool of highly skilled workforce in India, coupled with reasonable costs, adds a significant advantage for collaboration in this sector.

Networks

Indian support entities present in the Netherlands 

How to connect with the Netherlands Innovation Network in India? 

Netherlands Innovation Network (“Innovatie Attaché Netwerk” in Dutch) is part of the Dutch Ministry of Economic Affairs that operates in multiple countries with a strong innovation capacity and/or potential. This network aims to improve the innovation capabilities of the Netherlands by linking global and Dutch innovation networks. Focal areas for the organization are science, research, technology and innovation. The Network operates in more than 17 countries including 3 offices in India.  

Events

Commitment to the Paris Agreement

India has ambitious goals under the Paris Agreement: cutting emissions of greenhouse gases by 33-35% and achieving 450 GW of non-fossil power generation capacity by 2030. India and The Netherlands are collaboratively working to meet these targets.

Establishment of 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 tentatively agreed to supply Ford plants in Europe with ‘green’ steel post-2030. Tata plans to start producing green steel at its Dutch facility in Ijmuiden by 2030, a steel made without using fossil fuels.

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 rigid packaging post-consumer waste and produce 50,000 tonnes 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 crucial sectors such as Water, Agriculture, and Health (WAH agenda), Science and Technology, climate innovation, and renewable technologies. The re-launch of Free Trade Agreement negotiations and the Connectivity partnership between India and the EU were acknowledged as key drivers by both sides.

Interesting reads:

Publications | GTI (globaltechinterface.com)

Semicon opportunity report

The semiconductor value chain is built on international relations and is blooming, but fragile. Recent years have shown that geopolitical tension, trade conflicts, pandemics and natural disasters can lead to major supply problems. It is therefore important for the Dutch semicon sector to constantly look for cooperations with new and upcoming countries, such as India.

India is now the fifth economy of the world, and the prospect is that it will soon take over number 3&4, Japan and Germany. India has the third largest startup ecosystem in the world, and some 150 of the Fortune 500 companies have R&D facilities in the country.

India has high ambitions to become a semiconductor hub. The government launched Mission Semicon and, more recently, approved three semicon fabs, entering a new phase as a chip-producing country. The country offers financial incentives for foreign investors and has high-quality knowledge institutions, as well as a strong software sector. For example, NXP has been based in India for decades and, with >4000 FTE, mainly works on chip design and R&D.

This semicon opportunity report gives an overview of the Indian semiconductor sector, provides a stakeholder mapping, insights in the policy framework, an opportunity list for Dutch firms, and a rationale for exploring India as a semicon investment opportunity.

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