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Source:ContentCompiled fromtimesofindia.
India aims to catch up with global leaders in chip manufacturing, such as the United States and China, within ten years, with plans progressing rapidly. The government has launched a $10 billion incentive program as a foundational step to enhance manufacturing, assembly, and design capabilities. By 2031-2032, India is expected to compete with the current global leaders, leveraging its engineering talent and design capabilities.
In the next decade, India’s semiconductor industry is poised to match the global chip manufacturing leaders like the United States and China. Federal Minister Ashwini Vaishnaw outlined the government’s most ambitious technological goals on Thursday, stating that the country’s plans are advancing much faster than expected.
Speaking at the Bloomberg New Economy Forum in Singapore, he noted that the $10 billion semiconductor incentive program aimed at building manufacturing, assembly, and design capabilities is the foundation of this push.
“In terms of the semiconductor sector, by 2031-2032, we will reach the levels of many countries currently,” he said. “At that point, it will be a very fair competition,” the Economic Times quoted him as saying.
Vaishnaw emphasized that despite India’s semiconductor strategy being implemented for only three years, the progress made has attracted numerous well-known domestic and international companies. “For example, we only started developing the semiconductor industry three years ago. Now, we have a complete semiconductor ecosystem,” he stated.
Companies like Micron Technology have begun establishing testing and packaging operations in Gujarat, while the Tata Group is preparing to bring chip manufacturing to the domestic market.
According to Vaishnaw, three semiconductor plants in India are expected to begin commercial production early next year, marking a milestone as countries from the U.S. and China to Taiwan, South Korea, and Japan are increasing investments to ensure future supplies for artificial intelligence, electric vehicles, and advanced computing technologies.
The minister stated that India’s advantages lie not only in financial incentives but also in its engineering talent and increasingly robust chip design capabilities. “Our design capabilities, problem-solving skills, and talent pool that can be deployed in any major technology area will help us accelerate our development,” he said.
He added that India’s approach is to enhance its capabilities without undermining the strengths of other countries. “We should strengthen our own capabilities rather than weaken the potential of others, as our Prime Minister has said,” Vaishnaw told Bloomberg.
He also pointed out that India’s plans align with the global shift in how countries view technological infrastructure. “Digital sovereignty is a concern that every country is thinking about today, as we have the ability to control our own future,” he said.
Data shows that under the impetus of India’s semiconductor plan, the country’s semiconductor industry is developing robustly. So far, the Indian government has approved ten strategically significant projects covering large-scale manufacturing units (fabs), 3D heterogeneous packaging, compound semiconductors (including silicon carbide – SiC), and outsourced semiconductor assembly and testing (OSAT).
“Our goal is to make India one of the top five semiconductor countries in the world by 2032,” Vaishnaw stated on the first day of the India Semiconductor Expo.
India’s Minister of Electronics and Information Technology, Krishnan, confirmed that the central government has committed nearly ₹629 billion (approximately $7.17 billion), accounting for about 97% of the ₹650 billion (approximately $7.41 billion) semiconductor production incentive funds allocated under India’s semiconductor plan. The remaining funds are only sufficient to support a few small projects. Of the allocated budget, ₹100 billion (approximately $1.14 billion) is for chip production, ₹10 billion (approximately $114 million) for modernizing the semiconductor laboratory in Mohali, Punjab, and ₹10 billion (approximately $114 million) for design-linked incentive programs.
Indian corporate groups and semiconductor startups need to collaborate to fully leverage various favorable conditions, as the global supply chain has been disrupted, exposing potential risks in the global semiconductor value chain. Increased foreign investment is expected to stimulate the enhancement of India’s domestic semiconductor manufacturing and R&D capabilities. This means that investments in infrastructure, technology transfer, and skills development will increase. Therefore, companies and startups in India’s semiconductor sector may experience accelerated growth and technological advancement.
India is significantly behind Taiwan, South Korea, and countries or regions like the United States and Japan, which are investing hundreds of billions of dollars to build domestic chip manufacturing capabilities. Vaishnaw stated that India’s three chip plants will begin commercial production early next year.
In recent months, the Indian federal cabinet has approved four new semiconductor manufacturing projects under the India Semiconductor Manufacturing Strategy (ISM): SiCSem Private Limited, Continental Device India Private Limited (CDIL), 3D Glass Solutions Inc., and Advanced System in Package (ASIP) Technologies.
India’s chip market is booming, expected to reach $100 billion to $110 billion by 2030.
*Disclaimer: This article is original by the author. The content reflects the author’s personal views, and Semiconductor Industry Observation reproduces it solely to convey a different perspective, not representing Semiconductor Industry Observation’s endorsement or support of the views. If there are any objections, please contact Semiconductor Industry Observation.
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