India Aims to Capture 5% of the Global Semiconductor Share by 2030

In a bold stride towards technological self-reliance, India has launched the Semicon 2.0 initiative, with the aim of establishing itself as a major force in the global semiconductor industry. With rising geopolitical tensions and supply chain disruptions underscoring the importance of semiconductor independence, India is seeking to capitalise on this momentum by securing a 5% share of the global chip market by 2030. The country’s strategy focuses on infrastructure investment, international collaboration, and policy reforms.

Massive Investments to Power Domestic Manufacturing

Under the Semicon 2.0 programme, India has already approved 6 semiconductor facilities involving a cumulative investment of ₹1.55 trillion. The centrepiece of this drive is the Tata Group’s ₹91,000 crore fab plant in Gujarat, developed in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC). This plant is expected to boost India's chip fabrication capabilities significantly.

Alongside this, Kaynes Semicon is establishing an ATMP (Assembly, Testing, Marking, and Packaging) unit in Sanand, Gujarat, with an investment of ₹3,307 crore. These initiatives align with the broader goals of the Production-Linked Incentive (PLI) scheme, designed to encourage domestic and foreign players to manufacture semiconductors in India. Such developments mark a paradigm shift in India's industrial landscape.

Global Partnerships and Policy Support as Growth Catalysts

The government’s proactive stance is evident in its global outreach and partnerships. By attracting international firms and talent, India seeks to create a globally competitive semiconductor ecosystem. Collaborations with leading global companies and the alignment of academic institutions to provide skilled human resources are key to sustaining long-term growth.

Moreover, the establishment of the India Semiconductor Mission (ISM) has been pivotal in ensuring a structured and focused policy direction. The ISM provides the framework necessary to guide private investments while facilitating state-level infrastructure to support this growing sector.

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Conclusion

India’s foray into the global semiconductor industry under Semicon 2.0 marks a significant transformation in its technological narrative. With the right mix of investment, policy backing, and international collaboration, the country is well on its way to becoming a competitive and reliable player in the global chip supply chain.
 

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