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India’s Semiconductor Industry: A Growing Manufacturing Hub

India is evolving swiftly from being a major consumer of semiconductors to a significant global manufacturing hub. The domestic semiconductor market is anticipated to expand from $38 billion in 2023 to between $100 and $110 billion by 2030. This transformation is backed by strategic policies and a surge in global demand, positioning India as a crucial participant in the trillion-dollar global semiconductor value chain.

Driving Forces Behind Semiconductor Growth in India

As per an official announcement, growth is being propelled by initiatives such as the India Semiconductor Mission, which has an allocated budget of ₹76,000 crore, along with the Semicon India Programme. Furthermore, international collaborations like the Initiative on Critical and Emerging Technology (iCET) have significantly bolstered India’s involvement in the sector.

Strategic Independence in Semiconductor Production

India’s ambitions in the semiconductor realm are also linked to a broader goal of reducing reliance on foreign suppliers and fostering technological self-sufficiency. The upcoming Semicon India 2025 event, scheduled for September 2-4 in New Delhi, aims to highlight this transformative approach. This fourth edition will host participants from 18 countries, uniting industry veterans, innovators, academia, and government officials to enhance collaboration and develop innovative solutions across the semiconductor supply chain.

Infrastructure Development in Chip Manufacturing

Gradual progress is being made in India’s chip manufacturing infrastructure. In May 2025, the Union Cabinet sanctioned the establishment of another semiconductor fabrication facility under the India Semiconductor Mission, a collaborative effort between HCL and Foxconn. This facility will produce display driver chips for various devices, including smartphones, laptops, automobiles, and PCs. Designed to handle 20,000 wafers monthly, it is projected to deliver 36 million chips each month.

Indigenous Innovation in Semiconductor Production

This year will also witness the production of India’s first indigenous semiconductor chip, with five fabrication units currently under development. These advancements signify a pivotal achievement in the country’s quest to create a comprehensive and self-sufficient semiconductor ecosystem.

Capitalising on Supply Chain Strengths

India is maximising its potential in three vital areas within the supply chain:

• Equipment: A robust network of Micro, Small, and Medium Enterprises (MSMEs) is being utilised to manufacture essential components for semiconductor production equipment.
• Materials: India’s natural reserves of chemicals, minerals, and industrial gases offer the necessary raw materials for chip fabrication.
• Services and Talent: With an extensive talent pool in research and development, logistics, and advanced technologies such as AI, big data, IoT, and cloud computing, India is well-equipped to provide value-added services to the global semiconductor sector.

To further address industry needs, the government has launched a program to train 85,000 engineers specifically in advanced semiconductor and electronics manufacturing.

India’s Strategic Position in Global Supply Chains

With global supply chains remaining precarious due to their concentration in a limited number of regions, India’s ascent provides a promising alternative. As the global semiconductor market moves towards a projected valuation of $1 trillion by 2030, India is set to hold a substantial share, emerging not just as a market player but also as a formidable production powerhouse.

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