India's semiconductor sector: Growth fueled by strategic investments and global partnerships
New Delhi: Massive investments and strategic global partnerships have positioned India as a competitive hub in the global semiconductor supply chain, according to a new report.
Backed by government schemes offering up to 50% fiscal support, India’s semiconductor market is projected to expand from $45–50 billion in 2024–25 to $100–110 billion by 2030, the report published in India Narrative said.
The India Semiconductor Mission (ISM), under the Ministry of Electronics and Information Technology, runs several schemes including the Semiconductor Fabs Scheme, Display Fabs Scheme, Compound Semiconductors and ATMP/OSAT Scheme, and the Design Linked Incentive (DLI) Scheme.
The Fabs and Display Fabs Schemes provide up to 50% financial aid for eligible projects. The DLI Scheme offers incentives of up to ₹15 crore per chip design start-up or MSME, with 22 chip design projects funded so far.
Earlier this month, the government sanctioned four new semiconductor projects in Odisha, Punjab and Andhra Pradesh, taking the total approved projects to 10.
In his 79th Independence Day address from the Red Fort, Prime Minister Narendra Modi announced that Made-in-India semiconductor chips will reach the market by the end of 2025.
Global industry giants such as Tata Electronics, Micron and Foxconn are setting up facilities in Gujarat, Uttar Pradesh and Assam, boosting job creation and reducing import dependency.
The 2025 SEMICON India Exhibition is expected to draw over 300 exhibitors from 18 countries, reinforcing India’s reputation as a rising global semiconductor destination.
The semiconductor industry underpins critical sectors including communications, healthcare, transportation, defence and space, making it vital for economic security and strategic autonomy.
At present, the industry is dominated by Taiwan, South Korea, Japan, China and the United States. Recent supply chain disruptions highlighted the risks of such concentration, prompting India to push for diversification.
India has also forged global partnerships with Lam Research, IBM, Purdue University and Applied Materials to enhance technology transfer. Training initiatives across the country aim to skill 85,000 semiconductor specialists by 2032.
IANS inputs