May 29: India is set to play a significantly larger role in the global semiconductor ecosystem, with experts emphasizing that semiconductor production will be critical to the country’s future economic growth and technological independence.
A recent strategic report by NITI Aayog’s Frontier Tech Hub outlines an ambitious plan to build a semiconductor value chain worth USD 120–150 billion by 2035. The roadmap is designed to transform India from a downstream consumer of chips into a key participant in global semiconductor production and design.
Titled “Future of India’s Semiconductor Industry,” the report presents a phased development strategy focused on strengthening domestic capabilities across design, manufacturing support systems, and high-value niche segments. The plan is aimed at positioning India as a strategically important node in the global electronics and semiconductor supply chain.
The report follows the Union Budget 2026 announcement of the India Semiconductor Mission (ISM) 2.0, which signals a shift from initial ecosystem-building efforts to scaling up production capacity and deepening technological capabilities.
Rather than directly competing in the most advanced semiconductor fabrication nodes, the roadmap recommends a “More-than-Moore” approach. This strategy focuses on leveraging India’s existing strengths in chip design, packaging, testing, and application-specific semiconductor solutions in fast-growing sectors.
According to experts, this approach allows India to build competitive advantage in specialized and high-demand segments of the semiconductor industry, while gradually expanding its manufacturing ecosystem.
The report also highlights the importance of strengthening research and development, improving supply chain resilience, and enhancing collaboration between industry, academia, and government institutions.
Overall, the strategy reflects India’s long-term vision of achieving technological sovereignty and becoming a globally indispensable player in the semiconductor value chain by 2035.