India's Ambitious Semiconductor Vision
India is setting an ambitious target to become one of the top three global destinations for advanced chip packaging by 2035. This goal is detailed in a new roadmap from NITI Aayog, India's premier public policy think tank, developed in consultation with experts and stakeholders.
The roadmap, titled 'Future of India’s Semiconductor Industry,' emphasizes the critical role of semiconductors in modern economic growth, national security, and technological sovereignty. It highlights that semiconductors power key sectors such as artificial intelligence, telecommunications, electric mobility, defense, healthcare, and digital infrastructure.
Currently, India relies heavily on imports, meeting 90-95% of its semiconductor demand through foreign sources. This dependency poses a strategic vulnerability, especially as global supply chains face disruptions due to geopolitical tensions. By 2035, India's semiconductor demand is projected to reach approximately $200 billion, within a global market expected to exceed $1.5 trillion.
Strategic Pillars and Focus Areas
The NITI Aayog strategy is built upon five core pillars: Pioneering (focusing on frontier R&D), Policy and Investment (mobilizing long-term capital), Production (establishing fabs and packaging facilities), People (developing talent), and Partnership (fostering global collaboration).
Rather than attempting to catch up in the highly capital-intensive wafer fabrication race, India plans to build scale and strategic advantage in specific niches. Key focus areas include advanced packaging, compound semiconductors (like silicon carbide and gallium nitride vital for EVs and renewable energy), mature-node manufacturing, design leadership, and critical materials.
The roadmap specifically recommends that India aim to become a top-three global hub for outsourced semiconductor assembly and test (OSAT) and advanced packaging, positioning itself as an indispensable part of the global semiconductor value chain.
Investment and Talent Imperatives
Achieving these goals will require substantial investment, estimated at nearly $135-180 billion in cumulative semiconductor investments over the next decade. The roadmap suggests that the government commit at least one-third of this amount to de-risk projects and attract large-scale private capital.
Talent development is identified as a critical constraint. India must build a comprehensive semiconductor talent pipeline, encompassing a wide range of specialists. This includes fab-ready technicians, manufacturing engineers, packaging specialists, materials scientists, and system-level architects to support the burgeoning ecosystem.
Towards Economic Strength and Sovereignty
The next decade will be pivotal for India's semiconductor ambitions. With sustained commitment, disciplined execution, and clear strategic direction, India aims to transform semiconductors from an import dependency into a significant source of economic strength, technological sovereignty, and global influence. This proactive approach seeks to secure India's position in the future of technology and industry.