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  • Semiconductor Industry
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  • High-tech Sector
  • Technology
  • Expansion

Last Update 15 April 2024

India investing big in semiconductor manufacturing: Will this reshape global innovation and economic landscapes?

Indian Aspirations for Semiconductor Industry


Semiconductor Aspirations

India is traditionally recognized for its excellence in software services, is now boldly venturing into becoming a prominent contender in the global semiconductor industry. With this industry projected to surpass a market size of $600 billion worldwide by 2026, it presents a lucrative opportunity for India to expand and enhance its presence in the high-tech sector.

The country has strategically forayed into semiconductor industry and at large the move is considered timely. In an era where AI is going to dominant self sufficiency in semiconductor shall serve India a world of good. Semiconductors are backbone for virtually all modern technological spaces from smart phones, wireless communication, electric vehicles to AI and the demand shall be consistently building up and reach a high in coming few years. The supply-chain disruptions are the biggest challenge for the world in production & distribution of semiconductors and currently with more geopolitical tensions in fray, India’s entry into the sector could bolster the technological sovereignty and easily position itself as a leading and crucial player in the industry. venturing into becoming a prominent contender in the global semiconductor industry. This transition from software to hardware and services to manufacturing could mark a significant turning point in India’s technological and economic trajectory.

Challenges for Semiconductor Industry in India – Semiconductor  Productization

India has been home to semiconductor design center's, including startups catering quite well in research & development especially with respect to design aspect. Yet, creating a semiconductor product entails numerous stages. It requires the transformation of a silicon concept into a manufacturable product, involving various critical phases of development to guarantee a defect-free design during mass production. Ultimately, a country that can manage all these stages for 100% of the productization process domestically will spearhead semiconductor technological progress. There are multiple compelling reasons why developing a comprehensive semiconductor productization ecosystem in India is crucial for economic progress. Such an initiative would promote self-sufficiency by minimizing reliance on semiconductor imports, covering aspects from fabrication, assembly, and testing to post-tape out services. This entails providing all requisite technical support throughout these essential phases.  In essence, establishing a semiconductor productization chain in India serves as a diverse catalyst for economic growth. It boosts technological autonomy, drives job creation by aligning with evolving career options beyond traditional chip designing, safeguards national interests, and positions India as a global leader in the semiconductor industry by managing the entire process domestically, from ideation to delivery.



Mr. Ravi Shekhar, Director & Head, of Eninrac Consulting says “For India to transition to global manufacturing hub semiconductors will be boon for the country in coming years. First it shall cut the country’s reliance upon expensive semiconductor imports and transform it to be self-reliant. Secondly, it will enable India as a major hub for semiconductor manufacturing which augurs well in favor of the country given the dominance of Taiwan in the global segment apart from China. With investments plan exceeding ₹2.5 Trillion in the segment and the flagging off three manufacturing units in the country will shape the AI age in India’s side.

With almost all global semiconductor majors planning to invest in India the advent of the country in global ecosystem is predicted to be a meteoric rise. If the technology segment continues to grow at the same pace India’s semiconductor market will breach $100 Billion mark by 2030/31. The CAGR is estimated to be more than 15%-20% for the control period 2024-2032 with both datacenters and edge expected to grow at the fastest rate in near future and shall drive the demand for semiconductors in the country"


Semiconductor Productization – What is it?


Productization of semiconductors plays a pivotal role within the silicon technology value chain by converting theoretical and technical prowess into concrete semiconductor products. This intricate process necessitates seamless collaboration among engineering, manufacturing, marketing, supply chain management, and various other domains. The goal of productization is to create semiconductor products that are not only commercially viable and responsive to market demands.


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