Top Semi Manufacturers are Betting Big on the Country’s Success…and so is Henkel
17% production growth in 10 years. And nearly 23% export expansion over the same period. That’s the achievement of India’s electronics sector, buoyed by significant government incentives under the ‘Make in India’ program. Other statistics are even more impressive. Smartphone production – arguably the lifeblood of India’s consumer electronics sector – has seen a five-fold increase over the last decade, with exports exploding by 42% and domestic consumption at an all-time high. Today, almost 100% of the mobile phones purchased in India are made in India, according to public officials.
It’s a remarkable story, and one that the Union Government aims to replicate for the semiconductor industry through its India Semiconductor Mission (ISM) program. Though lessons from the electronics sector can certainly be applied, semiconductor production presents a complexity all its own. The tech requirements and workforce skill set requirements are entirely different. India, however, is confident it will succeed, as the momentum is strong and initial projects with industry leaders, including Micron and Kaynes Semicon, are already underway. Top suppliers like Henkel are also firmly in the mix, having supported the growth of India’s electronics sector and now lending its semiconductor packaging materials expertise to the country’s next tech frontier.
Semiconductor Manufacturing: A New Regional Paradigm
To date, most of India’s semiconductor success has centered on chip design. By some estimates, 20% of the world’s semiconductor design workforce is in India, but accounts for less than 1% of global fab capacity. Upskilling the workforce, continued accelerated investment, infrastructure expansion, and leveraging technical expertise across the value chain – from semiconductor front-end to back-end to suppliers – will be critical to close the gap, all while keeping up with the rapid pace of technology advancement.
India has identified power semiconductors, advanced packaging and chiplets, and RF/mobile technologies among its biggest semiconductor opportunities, tapping into surging demand in the AI, industrial, and automotive sectors. These are also the areas where Henkel, one of the world’s top innovators in semiconductor packaging materials, has broad experience, deep technical know-how, and is confident it can have the greatest impact.
“Advanced packaging architectures are vital for AI cloud and edge capability, while wirebond innovations are fueling the power semiconductor market for automotive electrification, says Henkel’s Global Semiconductor Head, Ram Trichur, in a conversation with EFY earlier this year. “Our product line supports all these applications – from adhesives, underfills, encapsulants, and liquid compression molding materials to enable the most complex 2.5D and 3D advanced packaging designs; to high thermal die attach, as well as pressure-less and pressure-assisted sintering materials to support more efficient power discretes and power modules. Our innovations and engineering know-how can offer tremendous value to India’s semiconductor manufacturers, streamlining the concept to commercialization timeline.”
Developing A Vibrant, Experienced Ecosystem
Establishing semiconductor front-end and back-end production, as well as a reliable local supply chain, is well underway. There is an ongoing effort to upskill over 85,000 engineers in design and manufacturing roles and committed semiconductor investment for ten approved projects totals nearly $20 billion to date. These developments are promising indicators that India will meet its aggressive growth ambitions.
Experienced partners are a key component of ecosystem success. Henkel is among them. Unlike other suppliers, Henkel has been a contributor to the Indian electronics production community for over 30 years. The company operates five manufacturing sites, two innovation centers, a customer experience center, and earlier this year announced expansion of its Kurkumbh facility to include key electronics products. Henkel has also established a state-of-the-art Application Engineering Center in Chennai, Tamil Nadu, to further support its semiconductor and consumer device customers.
As Ram emphasizes, “Henkel is an enduring part of the Indian electronics fabric and is investing even more resources to support our semiconductor customers expanding in the region. We are already seeing memory manufacturers, OSATs, and power semiconductor companies staking a presence here, and Henkel’s portfolio and established application expertise are well-aligned with the types of products being made in India.”
Semiconductor Chip Manufacture and Design are the Start: Building Reliable Packages is the Finish Line
While chip design and manufacture, a skilled workforce, policy stability, global alliances, and experienced supplier partners are the foundation of this burgeoning ecosystem, package integration is where the proverbial rubber hits the road. This is how Henkel’s semiconductor materials innovation, proven success with top global semiconductor packaging customers, and process expertise can play an influential role, especially as India gets its semiconductor footing.
“We engage early with customers – during the design and development phase – to identify material needs and deliver solutions,” comments Ram, explaining Henkel’s co-engineering framework. “Whether improving performance, efficiency, reliability, or cost, our team works in unison with our customers through every stage to address operational and innovation goals.” Though the complexities are many, Ram believes the opportunity is vast. “This is definitely not a plug-and-play situation,” he says, comparing electronics manufacturing success to growth in the semiconductor space. “Semiconductor production is notoriously more capital-intensive and technically challenging than other electronics manufacturing processes. However, with the muscle of the central government alongside the will and significant investment of major players – Henkel included – India will become vital to global semiconductor expansion and sourcing diversification.”
References
- Electronics manufacturing, exports saw significant growth in 10 years of Make in India, Govt says
- Semiconductor mission pushes India from being aspirant to becoming global powerhouse
- India’s Smartphone Manufacturing Surge: 15% Growth with 32% Export Jump – Best Business Magazines for CEOs, Entrepreneurs, Senior Executives | CEO Reporter Business Magazine
- India’s semiconductor push faces key manufacturing gap despite design strength, says report – The Economic Times
