India’s semiconductor industry is entering a defining decade, with market projections estimating a surge from around $38 billion in 2023 to $100–110 billion by 2030. This rapid growth is being driven by an ambitious blend of government policy, domestic manufacturing incentives, and private sector investments. At the core of this momentum is the India Semiconductor Mission (ISM), a ₹76,000 crore initiative launched in 2021 to position India as a global hub for chip design, fabrication, and testing.
The mission not only funds semiconductor fabs and display units but also supports startups through a ₹1,000 crore Design-Linked Incentive scheme. Already, ₹234 crore has been allocated to 22 chip design startups working on solutions for CCTV systems, automotive electronics, smart devices, and telecom infrastructure.
Private players have responded strongly. Companies such as Micron, Tata Electronics (in collaboration with Taiwan’s PSMC), and Kaynes Semicon, along with HCL-Foxconn and CG Power-Renesas, have collectively committed investments exceeding ₹1.5 lakh crore (approximately $18 billion) to establish a domestic semiconductor manufacturing ecosystem.
These ventures span Gujarat, Assam, Uttar Pradesh, and Karnataka, marking a national footprint for what has long been a globally concentrated industry. The government recently approved the HCL-Foxconn joint venture’s chip facility in Uttar Pradesh, further expanding domestic capacity in back-end chip packaging and display driver manufacturing.
As part of its efforts to globalize the ecosystem, India is hosting SEMICON India 2025 from September 2–4 at Yashobhoomi, New Delhi. Co-organized by ISM and SEMI (Semiconductor Equipment and Materials International), the event will bring together more than 300 companies from 18 countries, including Japan, South Korea, Singapore, and Malaysia.
The summit will feature global pavilions, roundtables with policymakers, and dedicated zones for workforce development and design innovation. A new startup pavilion and skill development areas will also spotlight India’s intent to build a robust talent pipeline to meet semiconductor demands.
One of India’s greatest advantages lies in its capacity to contribute to all three pillars of the semiconductor supply chain equipment, materials, and R&D services. With a strong base of MSMEs, abundant raw materials and chemicals, and a skilled workforce in fields like AI, cloud computing, and IoT, India is well-positioned to emerge as a credible and secure alternative to traditional manufacturing hubs like Taiwan and South Korea.
This move is strategically important in light of the global chip shortage during the COVID-19 pandemic, which exposed vulnerabilities in over-reliance on single-region suppliers. Countries like the U.S., EU, and Japan have already rolled out similar initiatives to diversify supply chains, and India’s growing role is now being recognized on the world stage.
The global semiconductor market is expected to reach $1 trillion by 2030, and India aims to occupy a substantial share of this, not just as a consumer but as a contributor. Reforms such as easing Special Economic Zone (SEZ) policies and introducing state-level semiconductor incentives are designed to attract even more high-tech investments. Companies like Lam Research have announced plans to set up facilities in South Karnataka, while L&T Semiconductor Technologies has declared intentions to build a $10 billion fab by 2027.
As Phase 1 of the India Semiconductor Mission nears full deployment, attention now shifts to execution, speed of project delivery, and integration with global supply chains. SEMICON India 2025 is expected to be a milestone moment—providing a platform for new partnerships, innovation showcases, and a reaffirmation of India’s ambition to be more than just a market, but a manufacturing and innovation engine in the global chip ecosystem. If successful, India could redefine the global semiconductor map and mitigate the risks of geographic concentration by becoming a reliable, high-capacity alternative.
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