India’s Chip Leap: From Import Dependency to Global Semiconductor Leadership by 2030

India Eyes a Major Share in the $1 Trillion Global Semiconductor Market

India is accelerating toward a landmark transformation in electronics manufacturing, aiming to capture a substantial portion of the projected $1 trillion global semiconductor market by 2030, according to a central government statement issued on Sunday.

India’s semiconductor market, valued at $38 billion in 2023, is projected to grow to $100–110 billion by the end of this decade. In the near term, it is expected to reach $45–50 billion by 2024–25, reflecting a double-digit growth trajectory aligned with national ambitions to become a core node in the global chip value chain.

Major Investments: India’s Chip Infrastructure Takes Root

India’s chip ecosystem has shifted from policy planning to production readiness. Several billion-dollar fabrication and packaging units have been announced across the country, including:

  • Micron Technology: ₹22,516 crore investment for an ATMP (Assembly, Testing, Marking & Packaging) facility in Sanand, Gujarat (June 2023).

  • Tata Electronics & Powerchip (Taiwan): ₹91,000 crore chip fabrication plant in Dholera, Gujarat, with 50,000 wafer/month output (Feb 2024).

  • CG Power & Renesas (Japan) & Stars Microelectronics (Thailand): ₹7,600 crore facility in Sanand, capable of producing 15 million chips per day.

  • Tata Semiconductor Assembly and Test (TSAT): ₹27,000 crore unit in Morigaon, Assam, with a production capacity of 48 million chips/day.

  • Kaynes Semicon: ₹3,307 crore plant launching in Sanand by Sept 2024, with a capacity of 6.33 million chips/day.

  • HCL-Foxconn JV: ₹3,700 crore investment in Jewar, Uttar Pradesh, set to launch in May 2025 with 20,000 wafers/month or 36 million chips/year.

Equipment, Materials & Services: Building India’s Semiconductor Backbone

India is also working to secure leadership across all three pillars of chip manufacturing:

  1. Equipment: MSMEs are being incentivized to produce critical machine components.

  2. Materials: India’s rich reserves of chemicals, minerals, and gases can support raw material demands for semiconductor manufacturing.

  3. Services: India’s massive talent pool, strong in R&D, logistics, and cutting-edge tech such as AI, IoT, and cloud, provides global leverage.

Strategic Policy Architecture: India Semiconductor Mission (ISM)

Launched in December 2021 with a total outlay of ₹76,000 crore, the India Semiconductor Mission (ISM) is the nodal body for implementation of government-led chip initiatives.

ISM aims to:

  • Provide financial support for fabrication, design, and display units.

  • Drive foreign investment and strategic partnerships.

  • Serve as the central agency for approving and monitoring project execution.

Led by global experts, ISM is ensuring India's shift from being a chip consumer to a chip contributor.

International Collaboration & National Strategy

Key initiatives supporting India’s chip ambition include:

  • SEMICON India Programme

  • India-US iCET (Initiative on Critical and Emerging Technologies)

  • Collaborations with Japan, Taiwan, and the EU

  • Indigenous innovation in space and defence (e.g., Chandrayaan-3’s Vikram Lander powered by AI and Indian chips)

These efforts are designed not just for manufacturing—but to integrate India into the global electronics and semiconductor value chain.

Why Semiconductors Matter: Strategic & Economic Stakes

Semiconductors are the brains of modern devices, from smartphones to satellites, medical devices to missiles. Their strategic importance is magnified by:

  • National security imperatives

  • Digital economy growth

  • Supply chain independence

  • Inflation control through stable energy and electronics pricing

India’s semiconductor push addresses all these areas, especially as global chip supply chains diversify away from single points of dependency.

Conclusion: From Dependence to Dominance

India’s bold semiconductor ambitions are no longer theoretical. With over ₹2 lakh crore in private investments announced, government-led missions in execution, and geopolitical backing through bilateral frameworks, India is fast becoming a credible alternative to East Asia in global chip production.

The road to 2030 is lined with opportunity—and India is positioning itself not just to participate, but to lead.

“India will not just be assembling chips. It will design, fabricate, test, and lead—from Bharat to the world.”

📌 Stay tuned to #PolicyPulse | #TechTalks | #SemiconductorIndia
For more updates on India’s digital and industrial transformation.

Location: Pune, Maharashtra, India

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