India is swiftly rising as a serious contender in the global semiconductor space, backed by a surge in demand for chips across AI, 5G, EVs, IoT, and advanced computing. As the global semiconductor market touches $656 billion in 2024, India is investing heavily to be at the forefront of this revolution.
Government Backing Through the ‘Semicon India’ Programme
The Union Government has launched the ‘Semicon India’ initiative with a ₹76,000 crore ($10 billion) incentive package to support chip manufacturing, semiconductor design, and advanced packaging within the country. The aim: to reduce dependence on imports and build a robust, self-reliant chip ecosystem.
Ashok Chandak, President of SEMI IESA, noted that global and domestic players have already committed over $20 billion in semiconductor-related investments. “This strong industry participation is evidence of growing confidence in India’s semiconductor roadmap,” he stated.
States Compete with Semiconductor-Friendly Policies
Leading the way, Gujarat introduced India’s first dedicated semiconductor policy, attracting major fabrication proposals. Other states, Karnataka, Tamil Nadu, Uttar Pradesh, Madhya Pradesh, Assam, Odisha, and Chhattisgarh, have also rolled out progressive policies offering tax breaks and infrastructure support.
Several companies, including Polymatech, HCL, CDIL, Suchi Semiconductors, RRP Electronics, and RIR, are already executing chip manufacturing and design projects. These ventures underline India’s capability and intent to be a long-term player in this strategic sector.
With a vast pool of chip design engineers and a growing electronics manufacturing base, India presents an attractive destination for global semiconductor firms seeking supply chain resilience and diversification.
IESA Vision Summit Highlights India’s Deep-Tech Rise
The recently concluded IESA Vision Summit 2025 in Gandhinagar drew 2,500 delegates, including 300 international participants, 100 exhibitors, and multiple country roundtables. The summit underscored the rising global interest in India’s semiconductor ambitions.
Demand Forecast: $103 Billion Domestic Market by 2030
According to the latest IESA market report, India’s domestic semiconductor demand is projected to reach $103 billion by 2030, while the global market is set to cross the $1 trillion threshold.
Dr. Veerappan, Chairperson of IESA, stated, “With focused efforts on innovation, skill development, and infrastructure, India is not just building for itself but also contributing significantly to the global semiconductor supply chain.”
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