India’s semiconductor industry is on a powerful growth trajectory, with projections estimating the market will more than double from $45–50 billion in 2024–25 to $100–110 billion by 2030. This surge aligns with the global semiconductor sector’s expected expansion to $1 trillion by the end of the decade, positioning India as a key emerging player.
The country’s shift from policy to production is already underway. India’s semiconductor market grew from $38 billion in 2023 to its current value, thanks to a push for domestic design, assembly, and fabrication capabilities. Officials released these updated figures during a national briefing on Sunday.
The momentum is fueled by an ambitious investment drive exceeding ₹1.55 lakh crore (approximately $18.6 billion). Six semiconductor facilities are currently in various stages of development under the India Semiconductor Mission (ISM), a ₹76,000 crore initiative launched by the government to build self-reliance in chip manufacturing.
Among the key projects:
- Tata Electronics has partnered with Taiwan’s Powerchip Semiconductor to build a ₹91,000 crore chip fabrication plant in Dholera, Gujarat, with a planned monthly capacity of 50,000 wafers.
- Micron Technology is investing ₹22,516 crore in an assembly and packaging facility in Sanand, Gujarat.
- The HCL-Foxconn joint venture will establish a ₹3,700 crore plant in Jewar, Uttar Pradesh.
Production of India’s first indigenous semiconductor chips is expected by the end of 2025. These chips, made using 28 to 90 nanometer technology, will support key sectors like automotive, telecom, railways, and power—industries that together account for roughly 60% of global chip demand.
Once operational, the total chip output capacity of Indian facilities will be about 7 crore units per day.
India’s strategy is built on several foundational strengths: a vast network of MSMEs for equipment and tooling, rich raw material resources (including gases, chemicals, and minerals), and a skilled talent base in R&D. The country is home to 20% of the global semiconductor design workforce, underscoring its potential in this space.
To further accelerate growth, the government has earmarked ₹1,000 crore for design-linked incentives. So far, 22 companies have received support for chip design projects worth ₹690 crore. These chips are being developed for use in mobile networks, satellites, surveillance systems, and smart technology devices.
India’s semiconductor push signals not only economic ambition but also a strategic step toward technological independence and global supply chain resilience.
