With $18 billion in investments and a surge in ATMP projects, India is on the semiconductor map—but scaling up to global leadership will require aggressive policy support and strategic execution.
Semicon India 2025: A Global Convergence in New Delhi
When over 500 companies and 15,000 delegates from 33 countries gather in New Delhi on September 2 for Semicon India, the spotlight will be on India’s late—but determined—entry into the global semiconductor race.
- Major players like Micron, Infineon, IBM, ASML, and Applied Materials will be present.
- Four chip powerhouses—Singapore, Japan, South Korea, and Malaysia—will showcase full-fledged national pavilions.
- Ten Indian states, including Gujarat, Tamil Nadu, Karnataka, and Odisha, will compete to woo investors with customised policies.
A Promising Demand Base, but a Long Road to Self-Sufficiency
India is already a significant consumer of chips, projected to touch $100 billion in market size by 2030, or 8–10% of global chip demand.
- However, in domestic production, India remains in early stages.
- Global semiconductor sales are expected to hit $1.2 trillion by 2030—India aims to be more than a buyer in that equation.
Government Push: $10 Billion Committed, $18 Billion Mobilised
India’s Semiconductor Mission, launched in December 2021, pledged $10 billion in subsidies to catalyse chip manufacturing.
- Result: Over $18 billion in investments committed to the Indian semiconductor sector.
- India is set to produce 95 million chips daily when current ATMP/OSAT projects become operational.
But the real milestone is the ₹91,000 crore (≈$11 billion) mega fab plant by Tata Group, expected to be operational only by 2027–28.
Focused Gains in OSAT/ATMP Segment
While full-scale chip fabrication (fab) remains limited, India has gained traction in OSAT/ATMP, where:
- 7+ plants are already approved or under construction.
- The government targets 10% global market share in this segment by 2030, competing with:
- Taiwan (40% share)
- Malaysia (14%)
This ambition is within reach, especially with Taiwanese and Malaysian firms diversifying into India.
Global Gap: Fab Plant Shortfall and Subsidy Deficit
India’s progress, though commendable, pales in comparison with global leaders:
- Fab plants under construction:
- China: 44
- Taiwan: 14
- Japan: 12
- US: 15
- India: 1
- Global subsidy pool:
- China: $200B
- South Korea: $55B
- US: $52B
- EU: $47B
- India: $10B (current)
Scaling up subsidies to at least $25 billion may be necessary to attract foreign mega fab players, particularly those like TSMC or Samsung Foundry.
Strategic Opportunity: Global Chip Shortage and Geopolitical Realignment
The pandemic-era chip shortage exposed the vulnerability of concentrated chip manufacturing, dominated by East Asia. Now, countries are:
- Localising production for economic and national security.
- Weaponising chip trade, with the US curbing China’s access and incentivising reshoring.
India must seize this window of opportunity to:
- Build strategic alliances.
- Leverage its trusted partner status in the West.
- Offer a secure and scalable ecosystem to global fab giants.
Global Partnerships Could Be Game-Changing
A major breakthrough may come from Japan, with Prime Minister Shigeru Ishiba expected to announce $68 billion in investments in India over a decade—semiconductors included.
- Such collaboration could provide:
- Advanced tech transfer
- Equipment supply chains
- Collaborative R&D hubs
India must also deepen US, EU, and Taiwan partnerships to plug expertise and technology gaps.
Building the Full Stack: Beyond Just Manufacturing
To be a top 5 semiconductor nation, India must not just make chips—but master the entire value chain:
- Chip design – where India already has a strong IT workforce
- Materials & equipment – incentivise local and foreign suppliers
- Talent development – industry-ready engineers and technicians
- Clean energy infrastructure – essential for power-intensive fabs
- Sustainable water and waste management – to support fab operations
The Road Ahead: 5-Year Execution is Critical
Electronics Minister Ashwini Vaishnaw has set an ambitious 5-year target:
- 4–6 new fabs
- 6–10 compound semiconductor plants
- 8–10 ATMP/OSAT units
Achieving even 70–80% of this roadmap would:
- Cement India’s position in the global semiconductor ecosystem
- Reduce import dependency
- Stimulate innovation, jobs, and exports
