New Delhi: India’s semiconductor chip market is growing at a rapid pace. The chip industry is expected to hit $100-110 billion by 2030. As the demand for chips is increasing globally, and the supply chain remains very fragile, India is fast emerging as a dominant player in becoming one of the manufacturing hubs of semiconductor chips.
The global semiconductor market is expected to reach USD 1 trillion by 2030 with India’s market occupying a substantial portion of it. The government believes that through sustained efforts, the country “has the capacity to emerge as a key contributor to the 3 primary pillars of the semiconductor manufacturing supply chain – Equipment – leveraging strong base of MSMEs to produce components for semiconductor equipment: Materials – India is a rich source of chemicals, minerals and gases which can be utilized by semiconductor supply chain companies; and Services (R&D, Logistics and supply chain, major talent in AI, big data, cloud computing and IoT.”
The Modi government had launched the India Semiconductor Mission in December 2021 with an outlay of Rs 76,000 crore. The mission’s aim was to provide financial support for investments in semiconductor fabrication, display manufacturing & chip design to strengthen India’s integration into global electronics value chains.
“Envisioned to be led by global experts in the Semiconductor and Display industry, ISM aims to build a strong semiconductor and display ecosystem, positioning India as a global hub for electronics manufacturing and design, while serving as the nodal agency for the efficient and seamless implementation of semiconductor and display schemes,” the government release mentioned.
Mission focus of ISM
- Set up Chip Manufacturing plants(fabs)
- Create packaging and testing units
- Supporting startups in chip design
- Training young engineers
- Bring Global companies to Invest in India
(Inputs taken from government’s PIB release)