The Silicon Spark: India’s Quest for a Semiconductor Future
Why Semiconductors Matter
Rising Demand, Rising Dependence: India’s Electronics Consumption vs. Imports
As semiconductors form the backbone of everyday technology, India’s increasing electronics usage underscores the critical need to boost domestic manufacturing and cut down on imports.
This table highlights India’s growing electronics trade and consumption from FY 2019–20 to 2023–24 in USD billions. While imports steadily increased, exports nearly tripled, and domestic consumption showed a significant rise, reflecting strong internal demand and improving export performance.
India ranks as the fifth-largest market globally for consumer durables.The consumer electronics market in India was valued at USD 73.73 billion in 2022 and is projected to grow at a CAGR of 6.8% from 2023 to 2030.This growth is driven by factors such as increasing household incomes, urbanization, and a burgeoning middle class.Grand View ResearchGlobal Semiconductor Landscape: Key Players, Strengths, and Economic Impact by Country
Challenges to become a semiconductor hub
Impact of India's Delay in Semiconductor Manufacturing:
The Global Flow of Semiconductors: How Countries Without Fabs Access Critical Chips
The Role of Fab Labs and Innovations in India’s Semiconductor Journey:
India's initiatives to establish foot in Semiconductor:
India’s push to become self-reliant in semiconductor production is backed by the Atmanirbhar Bharat initiative and the Semicon India Program, aims to roll out its first indigenous semiconductor chip, by 2025. Here’s an overview of the key initiatives:
● Tata Electronics is establishing a semiconductor fab in Dholera, Gujarat, with an investment of ₹91,526 crore.
● Outsourced semiconductor assembly and test (OSAT) facility in Assam, costing ₹27,120 crore.
● States like Gujarat and Uttar Pradesh have introduced semiconductor policies offering additional subsidies and support to attract investments in the sector.
● U.S.-based Lam Research is investing over $1 billion to set up a semiconductor equipment manufacturing facility in Bengaluru, Karnataka. This move supports India’s push to build a robust domestic semiconductor ecosystem.
● Over 300 colleges across India are now offering specialized courses in semiconductor technology, supported by updated curriculum and industry partnerships.
● 🏭 Micron Technology and Tata Electronics are set to significantly strengthen India’s semiconductor ecosystem by 2025. Micron’s $2.75 billion ATMP facility in Sanand, Gujarat—launched in July 2023—is expected to generate 20,000 jobs (5,000 direct and 15,000 indirect), while Tata Electronics is investing ₹27,000 crore (approx. $3.6 billion) in Jagiroad, Assam, to create 27,000 jobs, including 15,000 direct roles. 📊 Together, these projects will add 47,000 jobs, marking a major leap toward semiconductor self-reliance. To support this growth, the government launched a training program in February 2025 to skill 20,000 engineers in advanced chip technologies over the coming years.
● L&T Semiconductor Technologies also plans a $10B fabrication facility by 2027.
● Semicon India Program supports India’s goal of building a complete semiconductor ecosystem—from fabrication and testing to packaging and chip design. This vision is being powered by global partnerships, startup support through Fab Labs, and academic R&D contributions like IISc’s work on gallium nitride technology and IIT Madras’s indigenous “Shakti” microprocessors, which are based on the open-source RISC-V architecture.
● The Centre for Nano Science and Engineering (CeNSE) at IISc Bengaluru houses India’s leading semiconductor research and fabrication hub. Its National Nano fabrication Centre (NNfC) offers advanced clean room facilities for chip prototyping, while the Micro and Nano Characterization Facility (MNCF) supports material testing. CeNSE also runs INCeNSE, an incubator for deep-tech startups, and conducts training programs to build a skilled semiconductor workforce.
● The All India Council for Technical Education (AICTE) has announced that more than 600 engineering and technical institutions will soon offer undergraduate and postgraduate courses in semiconductor technology. This move is expected to create over 16,000 seats for students pursuing careers in this field in upcoming years. (ETEducation.com)
● Chips to Startup (C2S) Program: The Ministry of Electronics and Information Technology (MeitY) has launched the C2S program to train 85,000 engineers in chip design over the next five years. The program provides access to Electronic Design Automation (EDA) tools and hands-on experience in chip design and fabrication. (DD India)
● ChipIN Centre at C-DAC: The ChipIN Centre, located at the Centre for Development of Advanced Computing (C-DAC), offers one of the country’s most advanced semiconductor design facilities. It provides a wide range of tools and workflows necessary for chip design, covering the entire design cycle, including the latest 5 nm technology. This facility supports students and entrepreneurs in mastering semiconductor design. (DD News).
● Industry Collaborations: Global technology leaders like Siemens are contributing to these initiatives by extending the scope of their EDA tools to more educational institutions across India, further enhancing the country’s semiconductor capabilities. (DD India)
● These projects enhance India’s regional economies, support import substitution, and contribute to digital self-reliance. India is also strengthening ties with global allies through initiatives like iCET(India Initiative on Critical and Emerging Technologies) with the U.S. and Japanese collaborations. Japan’s FDI in India rose 700% from 2021 to 2024.
These efforts are aimed at making India a leader in segments like automotive electronics, 5G chips, and AI accelerators while reducing dependence on imports and fostering domestic innovation. The semiconductor market is expected to reach $63 billion by 2026, underlining the economic significance of this transition.
From Vision to Silicon: How Semi Con India Is Shaping a Self-Reliant Tech Future
IoT’s Role in Driving Semiconductor Innovation and Demand in India
The Internet of Things (IoT) is revolutionizing connectivity, and semiconductors are the silent engines powering this transformation. From smart homes and wearables to factories and farms, every IoT device depends on semiconductors to sense, compute, and communicate. In India, IoT is playing a crucial role across sectors—agriculture (smart irrigation, soil monitoring), healthcare (remote patient monitoring), manufacturing (predictive maintenance, automation), logistics (real-time tracking), energy (smart grids, meters), and urban planning (smart cities and traffic management). This growing adoption is pushing the need for compact, low-power, and cost-efficient chips tailored to India’s unique environments. With IoT enabling real-time data and automation, India benefits through increased productivity, better resource management, improved healthcare access, and enhanced public services. It’s also opening doors for local innovation, startups, and semiconductor design talent. Ultimately, IoT is not just reshaping technology—it’s becoming a catalyst for inclusive growth and digital transformation in India.
