India is fast positioning itself as a key player in the global semiconductor ecosystem, as the industry hits a record $656 billion in 2024, growing over 21% year-on-year. With rising global demand for semiconductors driven by AI, 5G, EVs, IoT, and advanced computing, India is leveraging its talent, policy push, and strategic location to become a hub for semiconductor innovation and manufacturing. As per recent report released by Gartner, Nvidia leads the top 10 chip suppliers and biggest contributions is from GPU, CPU, Memory and Mobile SoC’s.
Under the Government of India’s Semicon India Program, a ₹76,000 crore ($10 billion) incentive package has been launched to boost domestic chip manufacturing, advanced packaging, and semiconductor design. Coupled with strong participation from industry, over $20 billion in investments have already been committed by IESA member companies and global players across multiple Indian states. In addition to MeitY-approved key projects, many semiconductor initiatives have garnered strong support from various state governments, with several prominent Indian corporates actively participating—demonstrating the sector’s growing momentum nationwide. Notable live projects include those by Polymatech, HCL, RRP Electronics, Suchi Semiconductors, RIR, and CDIL, reflecting a broad-based commitment to building India’s semiconductor capabilities.
Recognizing this transformative opportunity, many Indian states have stepped up by introducing tailored semiconductor and electronics manufacturing policies. Gujarat has led the way with India’s first dedicated semiconductor policy and has already attracted major fab proposals. Similarly, Chhattisgarh, Assam, Uttar Pradesh, Karnataka, Tamil Nadu, Madhya Pradesh, and Odisha have crafted progressive frameworks offering policy support, tax incentives, ESDM clusters, and dedicated infrastructure to attract semiconductor players. IESA has been in forefront with the states in policy formulations and promotions including role as knowledge partner.
India’s strengths—ranging from a large pool of chip design engineers, academic institutions, and a growing base of electronics manufacturing—position it as a natural partner for global companies seeking resilient and diversified supply chains. The recent IESA Vision Summit held in Gandhinagar showcased the immense potential and rising interest in India’s semiconductor and electronics sector, drawing over 2,500 delegates, 300 international participants, seven country roundtables, 100 exhibitors, and 100 research poster presentations—highlighting India’s growing stature as a global hub for deep-tech innovation and collaboration.
According to a recent IESA report on India’s semiconductor market, domestic demand is projected to reach $103 billion by 2030, while the global market is expected to surpass $1 trillion. This presents a significant opportunity for Indian semiconductor players to tap into both domestic and international markets, especially as chip manufacturing continues to evolve as a truly global industry. With a focus on innovation, advanced R&D, and skill development, India’s growing semiconductor ecosystem will play a pivotal role in achieving the vision of Atmanirbhar Bharat and Make in India, while also contributing significantly to the global semiconductor supply chain.
Most Importantly, Under the visionary leadership of Prime Minister Shri Narendra Modi and the dynamic stewardship of Union Minister for Electronics & IT, Railways, and Communications, Shri Ashwini Vaishnaw, India’s semiconductor and electronics sector has gained unprecedented momentum. Their focused push through flagship programs like Digital India, Make in India, and the Semicon India Program , PLI for Electronics manufacturing and Components, DLI for chip design , R&D , etc has catalysed massive investments, policy reforms, and global interest in India’s semiconductor and electronics journey. Both leaders have been engaging with global industry leaders, and fostering strategic partnerships that are accelerating India’s rise as a trusted and competitive destination for semiconductor manufacturing and innovation.
By : Ashok Chandak, President SEMI IESA and Dr. Veerappan , Chairperson IESA.
