India is on track to become a major player in the global semiconductor industry, with the country’s chip market expected to grow from USD 38 billion in 2023 to over USD 100 billion by 2030. As the global semiconductor market races toward a USD 1 trillion valuation by the end of the decade, India aims to occupy a substantial share of that growth, according to a government statement released on Sunday.
Backed by strong government initiatives, strategic partnerships, and major private investments, India’s semiconductor ecosystem is quickly transitioning from policy planning to production. The country is witnessing rapid development of fabrication, assembly, testing, and design hubs across states like Gujarat, Uttar Pradesh, and Assam.
Key investments fueling this growth include:
- Micron Technology’s Rs 22,516 crore ATMP facility in Sanand, Gujarat
- Tata Electronics and Powerchip (Taiwan): Rs 91,000 crore project in Dholera, Gujarat
- CG Power, Renesas, and Stars: Rs 7,600 crore chip plant in Sanand
- Tata Semiconductor (TSAT): Rs 27,000 crore facility in Morigaon, Assam
- Kaynes Semicon Pvt Ltd: Rs 3,307 crore plant launching in September 2024
- HCL-Foxconn JV: Rs 3,700 crore unit in Jewar, UP, expected to start by May 2025
These projects will collectively deliver tens of millions of chips daily and significantly reduce India’s dependency on imported semiconductors.
The government emphasized India’s strengths in the three pillars of semiconductor production:
- Equipment: Strong MSME base manufacturing critical components
- Materials: Rich reserves of chemicals, minerals, and gases
- Services: Skilled talent in R&D, logistics, AI, IoT, cloud computing, and big data
To steer this transformation, the India Semiconductor Mission (ISM)—launched in December 2021 with a ₹76,000 crore outlay—acts as the nodal agency for implementing related schemes. The goal is to integrate India deeper into the global electronics value chain and promote indigenous innovation in semiconductor design and manufacturing.
India’s initiatives are also supported by international collaborations, including the India-U.S. Initiative on Critical and Emerging Technology (iCET), and programs like SEMICON India.
As new facilities become operational, India is evolving from a chip consumer to a global manufacturing powerhouse—boosting its digital economy, reinforcing national security, and powering sectors from consumer electronics to defence and space.
This transformation was exemplified in the Chandrayaan-3 mission, where Indian-made semiconductor technology enabled the Vikram lander to autonomously identify and land on a safe lunar site, showcasing the strategic importance of semiconductor self-reliance.
With rising domestic demand, expanding global partnerships, and strong policy support, India’s semiconductor journey is set to redefine its technological future — from dependence to dominance.