Semiconductors are the backbone of modern digital infrastructure, powering devices like smartphones, laptops, satellites, and electric vehicles. Recognizing their strategic importance, India launched the ₹76,000 crore India Semiconductor Mission (ISM) in 2021 to build a robust domestic ecosystem, including fabs, design units, packaging, and testing facilities. Key initiatives under ISM—such as the Design Linked Incentive (DLI) and compound semiconductor support—promote innovation, startups, and skill development.
India’s chip market is expected to reach over US$ 100 billion by 2030. Strategic partnerships with global players like IBM, Micron, Lam Research, and Purdue University support R&D and workforce training. The flagship SEMICON India event serves as a global platform for collaboration and highlights India’s rising stature in the semiconductor value chain.
From smartphones and smart TVs to satellites, computers and autonomous vehicles, semiconductor chips are the invisible force behind modern digital innovation. These chips, built on materials that can act as both conductors and insulators, enable everything from real-time communication to advanced data processing. Whether it is a computer processing millions of instructions per second or a satellite transmitting global signals, it all boils down to the capabilities of a tiny semiconductor chip — small enough to fit between two fingers, yet powerful enough to drive entire ecosystems.
Semiconductors serve as the foundational elements of electronic devices. Their unique ability to alternate between conducting and insulating electricity makes them ideal for creating microchips that perform a wide variety of tasks. For instance, during India’s Chandrayaan-3 mission, the Vikram lander relied on AI and indigenous semiconductor-based systems to autonomously choose a safe landing site — showcasing how chips now act as decision-making units akin to a machine’s brain.
Each chip comprises millions (or billions) of transistors that function similarly to brain cells, regulating electrical signals. Alongside other microscopic components such as resistors, capacitors, and intricate wiring, these transistors enable devices to store, process, and transfer data — allowing for operations such as calling, sensing, and live streaming.
Significance of the semiconductor sector
Semiconductors power not only consumer electronics but also vital infrastructure in healthcare, defence, telecommunications, and space. As digital transformation accelerates globally, semiconductors are no longer just a technological asset but a strategic necessity.
The global chip shortage during the COVID-19 pandemic and the Ukraine-Russia war starkly revealed the world’s dependence on a fragile supply chain, disrupting the production of cars, smartphones, and other electronics. The key drivers for growth in the semiconductor sector include:
- Rising digitalization across industries;
- Increasing demand for high-speed, efficient, and compact components;
- Proliferation of smart devices and IoT;
- Growth of artificial intelligence (AI) and machine learning (ML), requiring real-time data processing at edge devices and cloud data centres.
These factors have intensified the need for energy-efficient, high-performance semiconductor systems capable of managing vast and complex data flows.
The global semiconductor market is expected to reach US$ 1 Trillion by 2030.
Currently, the global semiconductor industry is dominated by countries like Taiwan, South Korea, Japan, China, and the United States. Taiwan alone accounts for over 60% of total global chip production — including nearly 90% of the most advanced chips. However, this geographic concentration has left global supply chains vulnerable to pandemics, natural disasters, and geopolitical tensions.
To address these risks, nations such as the U.S., EU, Japan, and South Korea have launched ambitious strategies to build secure and diversified chip supply chains. India, with its skilled workforce and policy momentum, is emerging as a trusted and capable partner in this new semiconductor geography.
India’s emerging footprint in the global semiconductor landscape
India’s semiconductor market is expected to reach US$ 63 billion by 2026 and grow further to US$ 100+ billion by 2030 (up from US$ 38 billion in 2023; US$ 45-US$ 50 billion in 2024-2025).
Key enablers of India’s semiconductor growth include:
- Abundant natural resources (chemicals, gases, minerals) for chip manufacturing
- Strong MSME base for equipment components
- World-class talent in AI, cloud computing, IoT, and big data
In May 2025, India marked a milestone by launching two cutting-edge chip design centres in Noida and Bengaluru, focused on 3-nanometer designs — a global benchmark for next-gen computing. These centres follow earlier achievements in 7nm and 5nm chip design.
The integration of Electronics System Design and Manufacturing (ESDM) into the Make in India initiative, combined with the launch of the India Semiconductor Mission (ISM) and the Semicon India Programme, has played a pivotal role in establishing a strong and resilient semiconductor ecosystem within the country.
Approved in December 2021 with an outlay of ₹76,000 crore, the India Semiconductor Mission (ISM) is a strategic initiative by the Government of India aimed at making India a global hub for semiconductor design and manufacturing. The objectives of ISM include:
- Establish semiconductor fabrication (fab) plants
- Develop advanced packaging and testing facilities
- Support startups focused on chip design and innovation
- Train the next generation of skilled semiconductor engineers
- Attract global companies to invest in India
The India Semiconductor Mission is led by the Indian government in partnership with industry associations, research institutions, and academic bodies. It functions under the supervision of the Ministry of Electronics and Information Technology (MeitY) and other key government agencies.
Key schemes under ISM include:
- Semiconductor Fabs Scheme
- Display Fabs Scheme
- Compound Semiconductors & ATMP/OSAT Scheme
- Design Linked Incentive (DLI) Scheme
Since the launch of the DLI Scheme in 2022, the government has committed ₹234 crore in support for chip design projects from 22 companies, with a total project outlay of ₹690 crore. These chips are intended for use in CCTV cameras, mobile networks, satellites, automobiles, smart devices, and more.
The India Semiconductor Mission offers a wide array of skill development programs, including workshops, certification courses, and hands-on training, aimed at individuals looking to build expertise in the semiconductor industry. These initiatives provide practical experience, industry interaction, and mentorship to nurture skilled talent and support professional growth.
Academic and research institutions play a vital role in advancing the mission. Through cutting-edge research, technology innovation, and talent development, they help strengthen the ecosystem. The mission also encourages strong industry-academia partnerships to drive innovation, facilitate knowledge exchange, and launch collaborative projects that address key industry challenges and foster technological advancement.
Key Partnerships under the India Semiconductor Mission include:
- Lam Research and IISc have signed a Memorandum of Understanding (MoU) to utilize the Semiverse simulation platform to train 60,000 engineers over the next decade.
- Future Skills Program, a government initiative, that aims to train 20,000 engineers in Madhya Pradesh to strengthen the semiconductor talent pipeline.
- Micron and IIT Roorkee have partnered through an MoU to promote innovation and develop a highly skilled workforce for the semiconductor industry.
- IBM has collaborated to provide Indian students and professionals with access to advanced laboratories, internships, and research centers, enhancing hands-on experience and global industry alignment.
- Purdue University has entered into an MoU focused on advanced R&D, talent development, and commercialization in semiconductor and display technologies, emphasizing innovation-led collaboration between academia and industry.
In a bid to position India as a global leader in semiconductor innovation and manufacturing, the Government has launched the ₹76,000 crore SEMICON India Programme, executed through the India Semiconductor Mission (ISM). A cornerstone of this initiative is SEMICON India, a flagship event organized in collaboration with SEMI (Semiconductor Equipment and Materials International).
Conclusion
India is steadily positioning itself as a key player in the global semiconductor industry through robust policy frameworks, strategic investments, and global partnerships. The India Semiconductor Mission and flagship events like SEMICON India are fostering innovation, talent, and infrastructure development. With its growing capabilities in design, manufacturing, and R&D, India is poised to become a reliable and influential contributor to the global semiconductor value chain in the years ahead.
