India is making significant strides toward becoming a global semiconductor manufacturing hub, a crucial step in its journey toward technological self-reliance. As of 2023, the country ranks 39th in global semiconductor readiness, reflecting a growing capability in this critical industry. By 2030, India aims to capture at least 10% of the global semiconductor market, but achieving this goal will require more than just scaling up production—it demands a commitment to sustainability.
Semiconductor manufacturing is resource-intensive, consuming vast amounts of energy and water while generating significant emissions and waste. Addressing these environmental impacts is not just an ethical obligation but a strategic imperative if India is to maintain a competitive edge in the global market.
India’s Semiconductor Push and Environmental Hurdles
The semiconductor industry’s dependence on energy and water presents significant environmental challenges. Fabs, the facilities where semiconductors are manufactured, consume millions of liters of water annually and require substantial energy inputs. As India ramps up domestic semiconductor production, these resource demands are set to increase.
Recognizing these challenges, the Indian government launched the India Semiconductor Mission (ISM), a $10 billion initiative aimed at fostering semiconductor manufacturing, display fabs, and compound semiconductor development. The mission emphasizes creating high-tech clusters equipped with infrastructure for energy and water conservation, striking a balance between economic growth and environmental responsibility.
Strategies for Sustainable Semiconductor Manufacturing
To ensure that semiconductor manufacturing aligns with sustainability goals, India is focusing on several key strategies:
1. Energy Efficiency and Renewable Energy Integration
Indian fabs are incorporating energy-efficient technologies and exploring renewable energy options. This aligns with the country’s broader renewable energy ambitions, including a target of 500 GW of renewable capacity by 2030. Solar panels, microgrids, and energy-efficient lighting are being integrated into fabs to reduce their environmental footprint. Collaborative efforts with power providers are also helping the industry transition toward sustainable energy solutions.
2. Water Conservation and Recycling
Water scarcity is a pressing concern, especially in semiconductor hubs like Karnataka and Maharashtra. Advanced fabs are implementing water recycling systems, enabling the reuse of up to 75% of the water consumed. These measures are crucial for maintaining operations without depleting local water resources, particularly in drought-prone areas.
3. Carbon Emission Reductions Through Technology
Fabs are investing in process-gas abatement systems and adopting materials with lower environmental impacts. Advanced air filtration systems are being deployed to curb emissions, aligning with India’s commitments under the Paris Agreement to reduce industrial greenhouse gases.
4. Strengthening Supply Chains and Workforce Development
India is building a resilient semiconductor ecosystem by encouraging local sourcing and reducing reliance on imports. The government’s Production-Linked Incentive (PLI) scheme is incentivizing domestic production of semiconductor components, bolstering supply chain security while minimizing emissions from transportation.
In tandem, workforce development initiatives are addressing the skills gap in the semiconductor sector. Programs led by the Electronics Sector Skills Council of India (ESSCI) and partnerships between industry, academia, and government are training a new generation of workers to support the country’s semiconductor ambitions.
5. Circular Economy and E-Waste Management
India is also turning its attention to the end-of-life stage of semiconductor components. The National E-Waste Management Policy and state-level recycling initiatives are promoting the responsible disposal and reuse of electronic materials. These efforts are part of a broader push to adopt circular economy principles, where resources are reused, refurbished, or recycled to reduce waste and lower environmental impacts.
A Vision for Sustainable Growth
India’s ambitious semiconductor goals must go hand in hand with sustainability. By integrating energy-efficient technologies, advanced water management practices, and circular economy principles, the country is positioning itself to compete in the global semiconductor market while safeguarding the environment.
The India Semiconductor Mission (ISM) and initiatives like the PLI scheme highlight the government’s commitment to creating a resilient and eco-friendly semiconductor industry. These efforts will not only drive economic growth but also support India’s environmental objectives.
As the global semiconductor market grows, so does the opportunity for India to lead by example. Recent estimates project the Indian semiconductor market to expand from $15 billion in 2020 to over $64 billion by 2026. To sustain this growth responsibly, integrating sustainable practices into every stage of semiconductor production is essential.
