Semiconductor Market To Reach $1 Trillion By 2030, India To Play A Key Role

NDTV

15 hours ago

New Delhi:
India is expected to emerge as a significant player in the global semiconductor market, which is expected to reach USD 1 trillion by 2030.
In an official statement released on Sunday, the central government highlighted that India's semiconductor market, valued at around USD 38 billion in 2023, is projected to grow to USD 45-50 billion by 2024-2025 and further expand to USD 100-110 billion by the end of the decade.
This rapid growth reflects the country's growing focus on strengthening its position in the global semiconductor value chain.
The government stated "The global semiconductor market is expected to reach USD 1 Trillion by 2030 with India's market occupying a substantial portion of it".
India's chip ecosystem is evolving rapidly, moving from policy formulation to production readiness. Several fabrication, assembly, and design hubs are taking root across the country, translating vision into reality.
Major investments have been announced in various parts of India.
In June 2023, Micron Technology committed Rs 22,516 crore to set up an ATMP facility in Sanand, Gujarat.
In February 2024, Tata Electronics, in partnership with Taiwan's Powerchip Semiconductor Manufacturing Corporation, announced a Rs 91,000 crore investment in Dholera, Gujarat, with an output capacity of 50,000 wafers per month.
The same month, CG Power & Industrial Solutions, in collaboration with Renesas and Stars, proposed a Rs 7,600 crore plant in Sanand, capable of producing 15 million chips per day. Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will set up a Rs 27,000 crore facility in Morigaon, Assam, with a daily capacity of 48 million chips.
In September 2024, Kaynes Semicon Pvt Ltd plans to begin operations in Sanand with an investment of Rs 3,307 crore and a production capacity of 6.33 million chips per day.
By May 2025, HCL and Foxconn's joint venture is expected to start a facility in Jewar, Uttar Pradesh, with an investment of Rs 3,700 crore and a production capacity of 20,000 wafers per month, or 36 million units annually.
These developments highlight India's growing momentum in becoming a global semiconductor hub.
The government noted that India has the potential to contribute significantly to the three key pillars of semiconductor manufacturing: equipment, materials, and services.
On the equipment front, India is leveraging its robust base of Micro, Small, and Medium Enterprises (MSMEs) to produce essential components for semiconductor equipment.
In terms of materials, India is rich in chemicals, minerals, and gases, making it well-suited to support the raw material requirements of the semiconductor supply chain.
On the services side, India possesses a large talent pool in fields like research and development, logistics, and emerging technologies such as artificial intelligence (AI), big data, cloud computing, and the Internet of Things (IoT).
To support this vision, the government has also launched the India Semiconductor Mission (ISM) in December 2021.
Approved by the Union Cabinet with an outlay of Rs 76,000 crore, the mission aims to provide financial assistance for investments in semiconductor fabrication, display manufacturing, and chip design.
The objective is to deepen India's integration into global electronics value chains and establish the country as a hub for electronics manufacturing and design.
ISM is envisioned to be led by global experts in the semiconductor and display industries and acts as the nodal agency for the seamless implementation of various semiconductor-related schemes.
The govt also highlighted that country's electronics industry is expanding rapidly, and semiconductors are at the core of this transformation.
In a bid to meet rising domestic demand and reduce import dependency, the government has launched initiatives like the India Semiconductor Mission, the SEMICON India Programme, and international collaborations such as the India-U.S. Initiative on Critical and Emerging Technology (iCET).
These steps reflect India's transition from a consumer of chips to a critical contributor to the global semiconductor supply chain.
As approved facilities begin their operations and new projects move forward, India is fast positioning itself as a trusted semiconductor manufacturing hub.
This transformation is expected to boost the country's digital economy, enhance national security, and strengthen technological self-reliance. From dependence to dominance, the semiconductor revolution is taking shape across India.
Semiconductors are the invisible engines behind modern electronics, acting as the brains of devices ranging from mobile phones to satellites.
These materials have electrical conductivity between that of conductors and insulators, enabling them to function under different conditions.
This unique property allows for the creation of chips that can control and direct the functioning of advanced machines. In the Chandrayaan-3 mission, the Vikram lander relied on Indian-made technology and AI to identify a safe landing site and make decisions independently, showcasing the power of semiconductors in space and defence technologies.
With strong government backing, international partnerships, and increasing private sector participation, the country is laying a strong foundation for a self-reliant and technologically advanced future, powered by chips, designed and made in Bharat.