| MS Seminar


Name of the Speaker: Mr. Abhishek Krishnan (EE22S300)
Guide: Prof. Deleep R Nair
Venue: ESB-244 (Seminar Hall)
Date/Time: 7th February 2025 (Friday), 4:00 PM
Title: Divergence in the Development of Semiconductor Industry: A Comparative Study of India and East Asia.

Abstract :

This study compares the development trajectory of India’s semiconductor industry with that of East Asia to identify the factors behind its limited progress. We first map the divergence in technology capabilities between India and its East Asian counterparts. We consider the specialization of countries in key areas—research, innovation, and manufacturing—across the main stages of the value chain: Design, Fabrication, and Assembly, Test, and Package (ATP). These activities differ in terms of skills, knowledge intensity, and financial resource requirements, which in turn necessitate varying levels of capabilities. To account for these differences, we adopt the economic complexity approach. The analysis reveals that while Korea, Taiwan, and China still lag the US in overall technology capabilities in the semiconductor industry, they have surpassed it in industrial research and high volume manufacturing, which is found to have the highest complexity in the value chain. This finding suggests a high level of capabilities. In contrast, India’s specialization is limited to academic research and engg design service.

Further, we explore the possible reasons behind this divergence by examining the industrial policy landscape in the four countries, with a particular focus on policies targeting semiconductor fabrication. We characterize them in terms of their targets and the instruments used, and adopt the sectoral innovation system framework to further account for the various factors that shape the effectiveness of industrial policies. The analysis finds that, while all four countries implemented various industrial policies, India’s policy initiatives were least active in this regard. Despite similarities and differences in the policies adopted, the distinct development experiences of each country help us identify key factors crucial for catching up in semiconductor fabrication. These factors include the presence of a robust downstream industrial base before initiating catch-up efforts, a policy environment that positions the private sector as the primary driver of catch-up, and active government interventions focused on supply-side support and technology upgrading until the private sector becomes self-sustaining.