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Modi And Biden Announce New Semiconductor Plant

Prime Minister Modi and U.S. President Biden have announced plans to establish a new semiconductor fabrication plant in Kolkata.

Both leaders praised this landmark agreement, which aims to create a facility focused on advanced sensing, communication, and power electronics, essential for national security, next-generation telecommunications, and green energy applications, according to a White House statement.

The plant will be developed with the backing of the India Semiconductor Mission and a strategic technology partnership involving Bharat Semi, 3rdiTech, and the U.S. Space Force.

The GlobalFoundries Kolkata Power Center is expected to foster collaborative research and development in chip manufacturing, paving the way for significant advancements in zero and low-emission vehicles, Internet of Things (IoT) devices, artificial intelligence, and data centers. The White House also noted GlobalFoundries’ intentions to pursue long-term cross-border manufacturing and technology partnerships with India, which would create high-quality job opportunities in both nations.

India’s workforce faces significant challenges. While overall unemployment rates appear manageable, many young people are underemployed, trapped in low-paying informal jobs without stability. This underemployment is largely due to a skills gap, as the education system often fails to equip graduates with the necessary expertise sought by employers.

The situation is exacerbated by automation, which threatens job security, and regional disparities that push people to migrate for better prospects. Additionally, the leading authority for technical education has been cutting various degrees and programs in electronics and telecommunications, citing low student interest, which has left many electronics graduates facing job uncertainty.

Semiconductor Industry Set to Create Job Opportunities in Kolkata

The government’s initiatives in the semiconductor sector present exciting opportunities for electronics graduates. Recognizing the crucial role of semiconductors in technology, the Indian government is working towards semiconductor self-reliance, planning to establish three manufacturing units under the India Semiconductor Mission (ISM) with an investment of ₹1.26 trillion (about $15.2 billion).

This ambitious initiative marks a major shift in India’s technological landscape, fostering domestic semiconductor fabrication capabilities. Graduates in electronics are now able to pursue careers in semiconductor design and fabrication rather than being limited to traditional IT roles, potentially revitalizing the electronics industry and creating high-skilled research and development jobs.

The semiconductor industry is vital for India’s technological progress and economic growth. By bolstering domestic production and design, India aims to reduce import dependency, enhancing resilience against external factors and supply chain disruptions. A robust domestic chip industry also strengthens national security and boosts India’s competitive edge in the global market.

As major manufacturers from the U.S., Japan, and other countries look to India instead of China, this signals India’s growing potential as a global manufacturing hub.

To further support this shift, the All-India Council for Technical Education (AICTE) has introduced courses such as BTech in Electronics VLSI Design & Technology and Diploma in IC Manufacturing. This step will encourage many top universities and colleges to offer semiconductor courses. A survey by Randstad Company indicates a job demand of 40,000 to 50,000 employees in the sector, with projections suggesting around 100,000 job opportunities by 2025. The Indian semiconductor market is expected to reach $85 billion by 2028.

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Kanika Sharma