India’s semiconductor industry is poised for massive growth, with the market expected to more than double by 2030. According to government and industry estimates, the sector may reach $100–110 billion (₹9.6 lakh crore), up from $45–50 billion in 2024–25.
India Rises as a Trusted Global Chip Partner
In a recent government statement, officials emphasized India’s growing role in reshaping the global chip supply chain. The push follows the global disruption caused by the COVID-19 pandemic and the world’s over-reliance on Taiwan, which currently produces over 60% of global semiconductors and nearly 90% of advanced chips.
With geopolitical risks and supply shocks looming large, many countries—including the U.S., EU, Japan, and South Korea—have launched national strategies to diversify chip production.
“India is emerging as a reliable, strategic partner in this global shift,” the statement noted.
Massive Investment Backing India’s Chip Drive
The Indian government has launched the India Semiconductor Mission (ISM) with a budget of ₹76,000 crore, aiming to support chip manufacturing, display fabs, and design innovation.
So far, major players have pledged over ₹1.55 lakh crore in investments, including:
- Micron Technology (USA)
- Tata Electronics & PSMC (Taiwan)
- CG Power with Renesas
- Tata Semiconductor Assembly and Test Pvt Ltd (TSAT)
- Kaynes Semicon
- HCL-Foxconn JV
Focus on Chip Design and MSME Participation
Under the Design Linked Incentive (DLI) scheme, the government has committed ₹234 crore to support 22 startups working on chip design, with total project investments of ₹690 crore. These chips will be used in sectors like:
- CCTV surveillance
- Smart devices
- Mobile networks
- Automobiles
- Satellite systems
India also plans to tap into its strong base of MSMEs for semiconductor equipment production and its rich resource base of chemicals and minerals critical for chipmaking.
Semicon India 2025 to Highlight India’s Role
The upcoming Semicon India 2025 conference, co-hosted by the India Semiconductor Mission (ISM) and SEMI, will be held in New Delhi from September 2–4, 2025 at Yashobhoomi (IICC). The event will bring together global tech leaders, policymakers, academia, and startups to showcase India’s rising role in the global semiconductor supply chain.
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