Synopsis
India is becoming a significant player in the global semiconductor ecosystem, driven by rising demand for technology like AI and 5G. With government initiatives and investments from major firms, it is establishing itself as a hub for semiconductor manufacturing and innovation.Key Takeaways
- India's semiconductor industry expected to reach $656 billion by 2024.
- Government's 'Semicon India' initiative offers a $10 billion incentive.
- Over $20 billion in investments pledged by industry leaders.
- States like Gujarat and Chhattisgarh are leading semiconductor policy frameworks.
- Domestic demand projected to hit $103 billion by 2030.
New Delhi, April 12 (NationPress) As global demand for semiconductors surges due to factors like AI, 5G, electric vehicles (EVs), the Internet of Things (IoT), and advanced computing, India is harnessing its skilled workforce, policy initiatives, and strategic geographic advantages to establish itself as a hub for semiconductor innovation and manufacturing, according to industry experts.
India is rapidly establishing itself as a pivotal player in the global semiconductor ecosystem, with the industry projected to reach a record $656 billion in 2024, marking a growth rate exceeding 21 percent year-on-year. A recent report by Gartner indicates that Nvidia dominates the top 10 chip suppliers, with significant contributions from GPU, CPU, Memory, and Mobile SoCs.
Through the government’s ‘Semicon India’ initiative, a substantial Rs 76,000 crore ($10 billion) incentive package has been introduced to enhance domestic chip manufacturing, advanced packaging, and semiconductor design.
“In conjunction with robust industry participation, over $20 billion in investments have been pledged by IESA member companies and global entities across various Indian states,” stated Ashok Chandak, President of SEMI IESA.
Alongside MeitY-approved key initiatives, numerous semiconductor projects have received notable backing from different state governments, with several leading Indian corporations actively involved—illustrating the sector’s increasing momentum across the nation.
Key active projects include those by Polymatech, HCL, RRP Electronics, Suchi Semiconductors, RIR, and CDIL, showcasing a widespread commitment to enhancing India’s semiconductor capabilities, as informed by Chandak.
Gujarat has pioneered India's first dedicated semiconductor policy and has already attracted significant fabrication proposals. Similarly, states like Chhattisgarh, Assam, Uttar Pradesh, Karnataka, Tamil Nadu, Madhya Pradesh, and Odisha have developed progressive frameworks providing policy support and tax incentives.
India’s strengths—spanning a large talent pool of chip design engineers, esteemed academic institutions, and an expanding electronics manufacturing base—position it as a prime collaborator for global companies seeking resilient and diversified supply chains.
The recent ‘IESA Vision Summit’ in Gandhinagar highlighted the vast potential and growing interest in India's semiconductor and electronics sector, attracting over 2,500 delegates, 300 international participants, seven country roundtables, 100 exhibitors, and 100 research poster presentations—underscoring India’s elevating status as a global hub for deep-tech innovation and collaboration.
According to a recent IESA report on India’s semiconductor market, domestic demand is anticipated to reach $103 billion by 2030, while the global market is likely to exceed $1 trillion.
“With an emphasis on innovation, advanced R&D, and skill development, India’s burgeoning semiconductor ecosystem will be instrumental in realizing the vision of ‘Atmanirbhar Bharat’ and ‘Make in India’, while also making significant contributions to the global semiconductor supply chain,” remarked Dr. Veerappan, Chairperson of IESA.
