India's burgeoning semiconductor industry is attracting significant interest from global players, who recognize the strategic opportunity presented by the technological gaps within the country's ecosystem. These companies are eager to support India's ambition to become a prominent hub for chip manufacturing.
Many international firms are expanding their operations in India, focusing on localizing equipment manufacturing, investing in research and development (R&D), providing skilled workforce training, and developing infrastructure. Semiconductor companies are increasingly seeking partners with specialized expertise and a strong local presence within the Indian ecosystem.
The participation of numerous companies in Semicon India 2025, a flagship event focused on the semiconductor industry, underscores this growing trend. Scheduled to take place in New Delhi from September 2-4, the event anticipates participation from over 30 countries. SEMICON India 2025 aims to foster global collaboration, promote domestic innovation, and strengthen India's position as a reliable, scalable, and competitive electronics manufacturing hub.
Anil Chaudhry, Head of Robotics & Solutions at Delta Electronics (India), a Taiwan-based company, views India as a promising market due to increasing investments and government initiatives such as the announcement of new semiconductor fabrication plants. Chaudhry also highlighted the existing technological gap in high-speed precision machinery, which currently relies heavily on imports. Delta Electronics has initiated localization efforts and envisions further expansion in the future.
To support the development of the semiconductor industry, the Indian government launched the India Semiconductor Mission (ISM). The ISM encourages manufacturers to establish semiconductor facilities in India. The government has committed an outlay of INR 760 billion for the Semicon India Program, which aims to support companies and consortiums involved in silicon semiconductor fabs, display fabs, compound semiconductors, silicon photonics, sensors fabs, semiconductor packaging, and semiconductor design. The government offers financial support of up to 50% of the project cost for setting up silicon-based semiconductor wafer fabrication facilities.
India is also actively collaborating with other major semiconductor-producing countries to foster the growth of its domestic industry by attracting foreign investments. In March 2023, India signed a Memorandum of Understanding (MoU) with the United States to establish a semiconductor supply chain. Similar agreements have been signed with the European Union and Japan.
The Indian government is also addressing the anticipated shortage of skilled professionals in the semiconductor industry. Minister of Electronics and IT, Ashwini Vaishnaw, stated that the world is expected to face a shortage of one million semiconductor professionals by 2030, and India is well-positioned to bridge a significant portion of this gap. The India Semiconductor Mission (ISM) has a key goal of developing a global workforce for the sector. The government has partnered with 270 universities, equipping them with advanced semiconductor design tools. In 2025 alone, these tools were used over 120 million times, leading to the successful fabrication of 20 chips designed by 17 institutions at the Semi-Conductor Laboratory (SCL) in Mohali.
Several foreign companies have already invested in the Indian semiconductor industry. Micron Technology is constructing a semiconductor manufacturing plant in Gujarat. Foxconn has partnered with HCLTech for an outsourced semiconductor assembly and testing (OSAT) plant. CG Power and Industrial Solutions has partnered with Renesas Electronics America and Stars Microelectronics to establish a semiconductor assembly and testing facility in India. Tower Semiconductor and the Adani Group are jointly establishing a chip manufacturing plant in Panvel, Maharashtra.
The technological gaps in India's semiconductor sector are attracting global players who see a significant opportunity to contribute to the country's growth as a chip manufacturing hub. With government support, international collaborations, and a focus on workforce development, India is taking significant strides toward establishing a robust and competitive semiconductor ecosystem.
