India’s semiconductor sector is entering a new era. A country that once relied heavily on others for chips is now rapidly becoming an integral part of the global semiconductor supply chain. According to industry estimates, the Indian semiconductor market will more than double by 2030.
Let us understand what is driving this extraordinary growth and what it means for investors.
What’s Happening?
Global demand for semiconductors is rising rapidly, but production is still concentrated in only a few countries. Currently, Taiwan, South Korea, Japan, China, and the United States dominate the industry. Taiwan alone produces over 60% of the world’s semiconductors, including nearly 90% of the most advanced chips. However, the COVID-19 pandemic, wars, and geopolitical tensions have highlighted the risks of depending too much on other countries.
Recognising this strategic need, India launched the India Semiconductor Mission (ISM) in 2021. So far, six major units have been approved under ISM. These include facilities in Sanand and Dholera in Gujarat, Morigaon in Assam, and Jewar in Uttar Pradesh, with companies like Micron, Tata, Foxconn, and HCL investing in them.
Read About: What’s Holding Back India’s Chip Dream?
India’s Semiconductor Mission
The Government of India launched the India Semiconductor Mission (ISM) in December 2021 with a budget of Rs 76,000 crore. The mission provides financial support for investments in semiconductor fabrication, display manufacturing, and chip design.
Under ISM, there are four major schemes. The Semiconductor Fabs Scheme offers up to 50% financial support for fabrication units. The Display Fabs Scheme, the Compound Semiconductor and ATMP/OSAT Scheme, and the Design Linked Incentive (DLI) Scheme are also part of the initiative.
Under the DLI Scheme, the government has allocated Rs 1,000 crore. Out of this, Rs 234 crore had been disbursed as financial support to 22 startups by 2022. The chips developed under these initiatives will be used in CCTV cameras, mobile networks, satellites, automobiles, and smart devices.
Contribution of Major Companies
Leading domestic and international companies in the semiconductor sector have expressed interest in investing over Rs 1.55 lakh crore in India.
Several manufacturing projects are already underway, with Tata, Micron, Foxconn, and HCL actively involved.
In May 2025, the Minister of Electronics and IT, Ashwini Vaishnaw, inaugurated two state-of-the-art semiconductor design facilities in Noida and Bengaluru. These are the first facilities in India dedicated to 3-nanometer chip design and mark an important milestone in the country’s semiconductor innovation journey.
What is in it for Investors?
India’s semiconductor market is expanding rapidly. In 2023, it was valued at around $38 billion, rising to $45–50 billion in 2024–25. It is expected to reach $100–110 billion by 2030. Similarly, the global semiconductor market could touch $1 trillion by 2030.
The expected doubling of India’s semiconductor market by 2030 reflects the nation’s growing technical capabilities and vast potential.
However, it is worth noting that US President Donald Trump has recently proposed a 100% tariff on imported semiconductors into the US, with exemptions only if a company sets up a factory in the US or shifts production there.
What’s Next?
Events under the Semicon India Program are playing a crucial role in strengthening India’s semiconductor ecosystem. The fourth edition of Semicon India 2025 will be held from September 2 to 4 at Yashobhoomi in New Delhi. This year, over 300 exhibitors from 18 countries will participate, including international pavilions from Japan, South Korea, Singapore, and Malaysia.
India’s electronics industry is growing rapidly, and semiconductors lie at the heart of this transformation. To meet rising demand and reduce import dependence, the government has rolled out strategic initiatives like the India Semiconductor Mission, the Semicon India Program, and global partnerships such as iCET. As the approved facilities begin operations, India is positioning itself as a trusted hub for semiconductor manufacturing.
*The companies mentioned in the article are for information purposes only. This is not investment advice.
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