India`s High-stakes Bid to Become a Global Semiconductor Hub: Will it Succeed?

India`s High-stakes Bid to Become a Global Semiconductor Hub: Will it Succeed?
Case Code: ECON104
Case Length: 13 Pages
Period: 1960-2024
Pub Date: 2024
Teaching Note: Available
Price: Rs.400
Organization :
Industry : Technology & Communications
Countries : India
Themes: Government & Economy, Business Environment,Government Policies,Technology Strategy
India`s High-stakes Bid to Become a Global Semiconductor Hub: Will it Succeed?
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

This case study examines the evolution of India's semiconductor industry over six decades, focusing on key milestones, challenges, and their impacts on the country's technological landscape. Starting from the 1960s, it traces the establishment of the Semiconductor Complex Ltd. (SCL) in 1984 and the subsequent struggles due to inadequate infrastructure and bureaucratic hurdles. The liberalization of the economy in the 1990s brought an influx of companies but the industry continued to face significant issues. Renewed efforts began with the 'Make in India' initiative in 2014 and the India Semiconductor Mission (ISM) in 2019, culminating in a $15.2 billion investment plan approved in 2024 to reduce reliance on imported chips. The case highlights India's journey to secure a position in the global semiconductor ecosystem, addressing both historical and current challenges.

Targeted at MBA and Executive MBA students, this case study is ideal for courses in Economics, Politics, and Business Environment. It provides a comprehensive view of quick wins, short-term ambitions, and long-term goals for developing a robust semiconductor ecosystem in India. Professors can use this case to teach about global industry structures, value chain activities, policy development, public-private partnerships, and strategic initiatives in high-tech manufacturing.

Issues

The case is structured to achieve the following teaching objectives:

  • Discuss the impact of bureaucracy and policy on growth of an industry.
  • Identify the drivers and restraints in the semiconductor industry.
  • Describe the opportunities and challenges for developing nations like India to become a major global player in the semiconductor industry.
  • Examine the pivotal role of global partnerships in the growth of the technology sectors.

Contents

Keywords

Business Environment; Industry Structure; Open Economy Framework; Global technological supply chains, Government Policies; Ecosystem development; Competitive advantage,India's semiconductor market, Semiconductor manufacturing, Integrated circuit (IC) technology, Germanium semiconductors; Silicon technologies

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