India’s semiconductor strategy aims to:
- Reduce import dependency (currently 100% for high-end chips).
- Strengthen supply chain resilience.
- Position India as a global semiconductor hub.
- Align with the goals of Atmanirbhar Bharat.
Key Pillars:
- Semicon India Programme (2021) – ₹76,000 crore (~$10B).
- India Semiconductor Mission (ISM) – the nodal implementation agency.
- Incentive schemes: PLI, DLI, SPECS, and EMC 2.0.
🔧 Key Government Schemes & Incentives
1. Semicon India Programme
- Focus: Develop fabs, display units, and packaging facilities.
- Incentives:
- 50% subsidy for semiconductor fabs, display fabs, ATMP/OSAT units.
- Support for compound semiconductors, R&D, and chip design.
2. Modified Semicon India Programme (MSIP – 2023)
- Expanded eligibility to mature nodes (>40nm).
- Open-ended application window to attract more proposals.
- Added infrastructure support: water, power, logistics, R&D zones.
- Customs duty exemption on capital goods for chipmaking.
3. India Semiconductor Mission (ISM)
- Attracts global investments (Intel, TSMC, Micron, etc.).
- Chips to Startup (C2S) programme: Train 85,000 engineers.
- Semiverse by Lam Research: Train 60,000 engineers.
- R&D boost: Bharat Semiconductor Research Centre, SCL (Mohali).
4. Other Schemes
| Scheme | Budget | Objective |
| PLI (2021) | ₹2 lakh crore | Boost electronics manufacturing |
| DLI | ₹1,000 crore | Support fabless chip startups |
| EMC 2.0 | ₹3,000 crore | Build electronics clusters |
| SPECS | ₹5,000 crore | Promote component manufacturing |
🏭 Major Semiconductor Projects in India
| Project | Location | Investment | Partners | Type |
| Tata Fab | Dholera, Gujarat | ₹91,000 Cr | Tata & Powerchip (Taiwan) | 28nm Fab |
| Tata OSAT | Morigaon, Assam | ₹27,000 Cr | Tata | ATMP |
| Micron ATMP | Sanand, Gujarat | ₹22,516 Cr | Micron (USA) | Memory Testing |
| Tower-Adani | Sanand, Gujarat | ₹83,947 Cr | Tower (Israel), Adani | Fab |
| CG Power | Sanand | ₹7,600 Cr | CG, Renesas, Stars | ATMP |
| Kaynes Semicon | Sanand | ₹3,300 Cr | Kaynes | ATMP |
| RRP Electronics | Maharashtra (TBD) | ₹36,573 Cr | RRP | OSAT |
⚠️ Vedanta-Foxconn Fab was cancelled in 2023 due to lack of tech partner.
🌐 International Partnerships & Chip Diplomacy
- US-India: Micron’s ATMP facility; Indo-Pacific Semiconductor Alliance.
- EU-India: MoU on chip supply chain resilience.
- Japan-India: Renesas-Tata collaboration.
📈 India’s Semiconductor Market Projections
| Year | Market Size (USD) | CAGR |
| 2021 | $27B | 16% |
| 2026 | $64B | 16–18% |
| 2030 | $85–100B | 20%+ |
Key Drivers:
- Smartphones, 5G, EVs, AI, IoT, defense, aerospace.
Challenges to Overcome
1. High Capital Cost – A fab costs $5–7B+; India’s current budget (~$10B) is modest vs. China/USA.
2. Lack of Advanced Technology – India lacks experience with sub-7nm processes & EUV lithography.
3. Infrastructure Gaps
- Shortage of ultra-pure water, stable power, cleanrooms.
- Heavy import dependence for chemicals & equipment.
4. Skilled Talent Shortage
- India has strong chip design talent but weak in fab engineering.
- Only 20,000 fab-trained professionals vs. China’s 500,000.
5. Global Competition – Taiwan, China, South Korea, and USA already lead with massive investments.
6. Execution Delays – Vedanta-Foxconn collapsed; others face land, policy, and bureaucracy issues.
Way Forward: Phased Roadmap
Short-Term (2024–26)
- Focus on ATMP/OSAT (Micron, Tata).
- Expedite Tata & Tower-Adani fabs.
- Develop Semicon City (Dholera) and reliable infrastructure.
Medium-Term (2026–30)
- Move to 14nm–7nm fabs.
- Create semiconductor R&D hubs and national semiconductor institute.
- Establish state-level semiconductor clusters.
Long-Term (Post-2030)
- Build sub-5nm fabs, EUV capability.
- Develop domestic fab equipment industry.
- Create a “Chip Valley” for R&D and manufacturing.
- Reach 10% global market share.
India can succeed if it ensures:
- Timely project execution.
- Long-term policy clarity.
- Strong global tech partnerships.
- Talent development & infrastructure investment.
With the right strategy, India can capture 8–10% of the global semiconductor market by 2030, and potentially rival Taiwan and South Korea by 2040.