Powering the Future of Electronics
India’s chip market is booming and set to hit $100-110 billion. India is far emerging as a global semiconductor hub
What makes a phone smart, a computer process millions of commands in fraction of seconds, a TV bring out the reality as it is happening right now, a satellite collect data and send signals across the world? It all comes down to that tiny thing called semiconductor chip, that one can hold between one’s fingers.
Semiconductors are the essential building blocks of modern electronics, acting as the hidden brains that make devices work. Semiconductors are materials whose electrical conductivity lies between that of conductors and insulators. They can behave as either, depending on the conditions, making it ideal for electronic devices. This unique property allows semiconductors to be used in the creation of tiny electronic chips that control how modern devices function – not just your everyday devices but even satellites and defence systems. In Chandrayaan 3 Mission, Vikram lander used Indian made technology and AI to find a safe landing spot all on its own, all by taking complex decisions. Thus acting as a brain, semiconductor chips, help machines take decisions while processing heavy data, giving them iterative direction.
These chips are therefore the backbone of modern electronics, enabling the functioning of devices such as smartphones, computers, electric vehicles, satellites and even defence systems like Aaksh teer.
The chips are made from semiconductor material and can store, process, and transfer information, helping devices perform tasks such as calling, storing data, or sensing electrical signals. Each chip contains millions (or even billions) of microscale switches called transistors, which control electrical signals much like brain cells pass messages in our bodies. It also has other tiny components like resistors, capacitors, and wiring. Together, these elements process and move information.
Why Semiconductor Industry Matters: A Strategic Context
Semiconductors are at the heart of modern technology. They power essential systems in healthcare, transport, communication, defence, and space. As the world moves toward greater digitalization and automation, semiconductors have become integral to economic security and strategic independence. We can recall the acute shortage of chips that the world faced following the Covid 19 pandemic and the Ukraine Russia war that affected the manufacturing of cars, mobile phones and other electronics.
The main drivers of growth in the semiconductor industry include the accelerating pace of digitization across sectors, which is increasing the demand for faster, more efficient, and compact electronic components. There is a growing reliance on advanced semiconductor-based systems to process and store vast amounts of data generated by digital platforms, smart devices, and connected infrastructure. The rapid adoption of artificial intelligence and machine learning, both at the edge and in cloud data centres is fuelling the need for high-performance, energy-efficient chips that can handle complex computing tasks in real time.
Currently, countries like the Taiwan, South Korea, Japan, China and US dominate the semiconductor industry. Taiwan produces more than 60% of the world’s semiconductors, including nearly 90% of the most advanced ones. Such dependence on a single region has exposed global supply chains to significant risks—from pandemics and natural disasters to geopolitical tensions. Recognizing this challenge, many countries are now building secure and diversified supply chains. The United States, European Union, Japan, and South Korea have launched national strategies to support domestic chip manufacturing and reduce over-reliance on a single region. India is emerging as an important and trusted partner in this global shift.
India in the Semiconductor Market
The global demand for chips is skyrocketing, but the supply chain remains very fragile owing to the concentration of the industry in a few limited geographies. There is a clear need for global diversification of manufacturing. India is emerging as a dominant player in this regard. Initiatives like including Electronics Systems Design and Manufacturing (ESDM) as one of the key sectors under Make in India, or the India Semiconductor Mission and Semicon India programme have helped create an ecosystem to support the industry. The global semiconductor market is expected to reach USD 1 Trillion by 2030 with India’s market occupying a substantial portion of it. India 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.
As per industry estimates, the size of the Indian semiconductor market was about $38 Bn in 2023, $45-$50 billion in 2024-2025 and is expected to reach $ 100-110$ Bn by 2030.
India Semiconductor Mission was approved by the Union Cabinet in December 2021. With an outlay of ₹76,000 crore, the programme aims 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.
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
Objectives of ISM
• Formulate a long-term strategy for developing sustainable semiconductors and display manufacturing facilities and semiconductor design eco-system in the country.
• Facilitate the adoption of secure microelectronics and developing trusted semiconductor supply chain, including raw materials, specialty chemicals, gases, and manufacturing equipment.
• Enable a multi-fold growth of Indian semiconductor design industry by providing requisite support in the form of Electronic Design Automation (EDA) tools, foundry services and other suitable mechanisms for early-stage start-ups.
• Promote and facilitate indigenous Intellectual Property (IP) generation.
• Encourage, enable and incentivize Transfer of Technologies (ToT).
• Establish suitable mechanisms to harness economies of scale in Indian semiconductor and display industry.
• Enable cutting-edge research in semiconductors and display industry including evolutionary and revolutionary technologies through grants, global collaborations and other mechanisms in academia / research institutions, industry, and through establishing Centres of Excellence (CoEs).
• Enable collaborations and partnership programs with national and international agencies, industries and institutions for catalysing collaborative research, commercialization and skill development.
The India Semiconductor Mission is driven by the Indian government in collaboration with various industry associations, research organizations, and educational institutions. It operates under the guidance of the Ministry of Electronics and Information Technology (MeitY) and other relevant government bodies. ISM is crucial for strengthening India’s position in the semiconductor market, which is expected to reach $63 billion by 2026. [1] With these initiatives, India seeks to build a self-reliant electronics ecosystem, lessen its reliance on imports, and establish itself as a significant contributor to the global semiconductor supply chain.
To conclude, India’s electronic industry is growing rapidly, with semiconductors at the heart of this transformation. To meet rising demand and reduce import dependence, the government has launched strategic initiatives like the India Semiconductor Mission, the SEMICON India Programme, and global partnerships such as iCET. These efforts signal India’s shift from a consumer to a key player in the global semiconductor value chain. As approved facilities begin operations and new projects take shape, the country is positioning itself as a trusted hub for semiconductor manufacturing, strengthening its digital economy, national security, and technological self-reliance. From dependence to dominance, the chip revolution is real and its happening right here, right now in Bharat.
