Close-up of Indian flag on a microchip symbolizing technological growth
India’s semiconductor ambitions are gaining momentum with a decisive shift toward mature-node fabrication plants in the 28nm to 65nm range. Rather than entering the crowded and capital-intensive race for advanced nodes dominated by global giants like TSMC and Samsung, India is focusing specifically on chips that are significant for the automotive, telecom, and industrial electronics sectors, where demand remains robust and resilient.
Many industry experts note that the strategy mirrors the early growth trajectories of Taiwan and South Korea, which first built capacity in widely used semiconductor technologies before progressing to advanced nodes. This pragmatic approach positions India to plug critical gaps in global supply chains while reducing its dependence on imports.
Beyond fabrication, India is emerging as a strong player in semiconductor system integration. Leveraging its vast engineering talent pool and decades of experience in electronics, Indian companies are increasingly supplying integration solutions for automotive electronics, telecom infrastructure, consumer devices, and healthcare technologies. Global trends such as the “China Plus One” strategy have further enhanced India’s attractiveness as a cost-effective, reliable alternative for chip integration and assembly.
The government’s Semicon India Programme, launched in 2021 with an outlay of Rs 76,000 crore, is the backbone of this semiconductor push. The scheme supports fabrication, OSAT (Outsourced Semiconductor Assembly and Test), ATMP (Assembly, Testing, Marking, and Packaging) facilities, and supply chain development.
In 2025 alone, four new projects worth Rs 4,600 crore have been cleared in Odisha, Andhra Pradesh, and Punjab. With these additions, the India Semiconductor Mission (ISM) portfolio now spans 10 projects across six states, with cumulative investments exceeding Rs 1.6 lakh crore.
Key developments include:
Prime Minister Narendra Modi recently announced that made-in-India semiconductor chips will reach the market by the end of 2025. Industry observers view this as a landmark moment in India’s industrial and technological growth, signalling the country’s entry into the global semiconductor manufacturing ecosystem.With the combined force of policy support, global partnerships, and industry momentum, India’s semiconductor strategy is on track to reshape its role in global electronics supply chains while powering domestic growth across critical sectors.
