India is making a bold move to establish itself as a global powerhouse in the semiconductor industry. Prime Minister Narendra Modi, at the inaugural edition of Semicon India, unveiled a visionary plan to create a $500 billion domestic market for electronics by 2030, positioning India as a prime destination for semiconductor companies worldwide.
The Prime Minister emphasized India’s strategic importance in the sensitive semiconductor supply chain, declaring, “When the chips are down, you can rely on India.” He highlighted India’s robust infrastructure, skilled workforce, and stable geopolitical environment as key factors that make the country an attractive investment destination.
To strengthen its semiconductor capabilities, India is investing heavily in training, research, and development. Over the next decade, the country will train over 85,000 technicians, engineers, and research scientists in the semiconductor field. The government is also collaborating with prestigious institutions like the Indian Institutes of Technology (IITs) and establishing a semiconductor research facility at the Indian Institute of Space Science. Furthermore, India has allocated a ₹1 trillion fund for research on deep technologies.
The Prime Minister also highlighted India’s existing $150 billion domestic electronics market, which is projected to expand to a staggering $500 billion by the end of the decade. This growth is expected to attract more chipmakers and component suppliers to India, further strengthening its position in the global semiconductor landscape.
The government is backing its words with concrete actions. A revamped incentives package, aimed at boosting local sourcing of components and manufacturing of products, has been submitted for cabinet approval. This package, estimated at a whopping $15 billion, will complement the existing $10 billion semiconductor production-linked incentive (PLI) package announced three years ago.
India Semiconductor Mission (ISM), the nodal body responsible for approving chip investments, is actively working on a new incentives package that will include incentives for electronics components, further bolstering India’s appeal to investors.
India’s strong bilateral partnerships with global leaders like the US, the European Union, Japan, and Singapore are further cementing its position as a critical part of the global semiconductor supply chain. The US Department of Space has announced a partnership with ISM to conduct market surveys and invest in India’s chip ecosystem, fueled by a $500 million government fund.
Leading semiconductor companies have expressed their confidence in India’s semiconductor journey. Tata Electronics, which has already announced an $11 billion chip fab in Dholera, Gujarat, is poised to create 50,000 jobs, marking just the beginning of its contribution to the growing semiconductor ecosystem. Renesas, a Japanese semiconductor giant, has also established an OSAT plant in Sanand, Gujarat, and is planning to double its workforce in India to drive value-added advanced semiconductor design activities for both domestic and international markets.
NXP Semiconductors, a US-based semiconductor leader, has announced its intention to double its R&D investments in India to over $1 billion, underlining the company’s commitment to India’s technological advancement.
With five semiconductor projects already approved and construction underway on two, India is making rapid progress in its semiconductor ambitions. Micron, a US memory maker, has already shipped its first commercial chips from its facility in India. The government is also focusing on specialized materials to further strengthen the semiconductor ecosystem.
The upcoming Semicon 2.0 incentives package, slated to be rolled out within the next three to four months, will further accelerate India’s semiconductor journey. The government is reviewing several promising proposals and will be selecting them for cabinet approval in the near future.
India’s vision for becoming a global semiconductor powerhouse is taking shape, with a strong focus on attracting investments, developing talent, and building a robust semiconductor ecosystem. This ambitious plan has the potential to transform India’s technological landscape and solidify its position as a key player in the global economy.
