US multinational technology giant IBM on October 21, 2023, inked three agreements with the Indian Ministry of Electronics and Information Technology (MeitY) in the areas of semiconductors, artificial intelligence (AI), and quantum computing. The agreements are aimed at boosting India’s capabilities in these cutting-edge technologies and creating jobs in the country.

Advantages to the semiconductor ecosystem in India

The agreements will bring a number of advantages to the semiconductor ecosystem in India. First, they will provide access to IBM’s expertise and resources in semiconductor design, manufacturing, and packaging. This will help Indian companies to develop and produce their own chips, reducing the country’s reliance on imports.

Second, the agreements will support the development of a semiconductor research and development ecosystem in India. IBM will establish a semiconductor research center in India, which will work on developing new semiconductor technologies and applications. This will help to build a pool of skilled engineers and researchers in the country, which is essential for the growth of the semiconductor industry.

Third, the agreements will promote the adoption of semiconductors in a variety of industries in India. IBM will work with Indian companies to develop and deploy semiconductor-based solutions in areas such as healthcare, education, agriculture, and manufacturing. This will help to create new markets for semiconductors and drive the growth of the industry.

Jobs that will be created

The agreements are expected to create a significant number of jobs in India. IBM plans to hire 1,000 new employees in India over the next three years to support its work on semiconductors, AI, and quantum computing. Additionally, the agreements are expected to create indirect jobs in the semiconductor ecosystem, such as jobs at suppliers and partners of IBM.

Overall, the agreements between IBM and MeitY are a positive development for the semiconductor industry in India. They will provide access to IBM’s expertise and resources, support the development of a semiconductor research and development ecosystem, and promote the adoption of semiconductors in a variety of industries. These factors are expected to create a significant number of jobs in India and boost the growth of the semiconductor industry in the country.

In addition to the above, the agreements are also expected to have the following benefits:

• Accelerate the development of India’s digital economy: Semiconductors, AI, and quantum computing are essential technologies for the digital economy. By investing in these technologies, India can accelerate the development of its digital economy and create new opportunities for businesses and individuals.
• Enhance India’s global competitiveness: Semiconductors, AI, and quantum computing are also key technologies for global competitiveness. By investing in these technologies, India can enhance its global competitiveness and attract more foreign investment.
• Improve the quality of life for Indians: Semiconductors, AI, and quantum computing can be used to develop solutions to a wide range of social and economic challenges. For example, they can be used to develop new healthcare solutions, improve the efficiency of agriculture, and create new educational opportunities.

Overall, the agreements between IBM and MeitY are a significant development for India. They will help India to become a leader in semiconductor, AI, and quantum computing, and create new opportunities for businesses, individuals, and the country as a whole.