India's semiconductor sector is experiencing a surge in global confidence, with Prime Minister Narendra Modi highlighting the world's trust in India's capabilities and its readiness to collaborate in building the future of semiconductors within the country. This confidence is underpinned by a rapidly growing domestic market, strategic government initiatives, and increasing recognition of India's potential as a key player in the global semiconductor ecosystem.
The Indian semiconductor market is projected to more than double, reaching $100-110 billion by 2030, up from $45-50 billion in 2024-2025 and $38 billion in 2023. This growth is fueled by increasing demand for semiconductors in various sectors, including electronics, automotive, and telecommunications. The global semiconductor market is also expected to reach $1 trillion by 2030, with India poised to capture a significant share.
The Indian government has launched several initiatives to promote domestic semiconductor manufacturing and reduce reliance on imports. A key initiative is the Production Linked Incentive (PLI) scheme, with a committed investment of ₹76,000 crore, of which nearly ₹65,000 crore has already been allocated. This scheme provides financial incentives to companies that set up semiconductor manufacturing facilities in India. Furthermore, the government has sanctioned 23 design projects under the Design Linked Incentive scheme and has approved 10 semiconductor manufacturing projects with investments exceeding ₹1.6 lakh crore across multiple states.
At the Semicon India 2025 event in New Delhi, Union IT Minister Ashwini Vaishnaw presented the first "Made in India" chip to PM Modi, marking a significant milestone in the nation's journey toward semiconductor self-reliance. The chip, named Vikram, is a 32-bit processor developed by ISRO’s Semiconductor Lab and is qualified for use in harsh launch vehicle conditions. Vaishnaw emphasized that the achievement reflects India's rapid progress under the India Semiconductor Mission, launched in 2021. He also highlighted India's emergence as a "lighthouse of stability and growth" amidst global policy turmoil, emphasizing the stability of Indian policies as an incentive for international companies to invest in the country.
Industry leaders are also acknowledging India's growing importance in the semiconductor landscape. Tim Archer, CEO of Lam Research, stated that India is laying the foundation for a resilient semiconductor ecosystem. The establishment of the Outsourced Semiconductor Assembly and Test (OSAT) Pilot Line Facility in Sanand, Gujarat, with CG-Semi expected to begin chip production soon, further demonstrates India's commitment to developing a comprehensive semiconductor ecosystem.
India's strategic location, growing economy, and supportive government policies make it an attractive destination for semiconductor companies looking to diversify their manufacturing operations. As countries worldwide seek to reduce their dependence on a single region for semiconductor supply, India presents a viable alternative. With approximately 20% of the world's chip design engineers based in India, the country possesses a significant talent pool that is crucial to the global semiconductor ecosystem. The collaboration between India and countries like Japan, particularly in the semiconductor sector, further strengthens India's position.
