India's Growth in Semiconductor Manufacturing

Semiconductor Manufacturing in India - Key Highlights

1. Government Initiatives and Programmes:

   • Inauguration of SEMICON India 2026 by Prime Minister Narendra Modi.
   • Launch of Semicon 2.0, a Rs 1.27 lakh crore programme focusing on diverse semiconductor areas such as equipment, materials, design, R&D, and skilled workforce.
   • Accelerated growth to commercial production of semiconductor chips within four years; a process typically taking a decade.

2. Semiconductor Mission:

   • 12 projects approved under the first phase of the India Semiconductor Mission; three already underway in commercial production.
   • Aimed at building a comprehensive semiconductor ecosystem as a national priority.

3. Market Demand and Economic Data:

   • Semiconductor market demand projected to reach $110 billion by FY30 and exceed $200 billion by FY35.
   • India spent approximately $150 billion on semiconductor imports from FY17 to FY25, with a CAGR of 23%. Annual imports could rise to $240 billion by 2035 if trends continue.

4. Private Sector Engagement:

   • PM Modi emphasized the need for greater private sector involvement in R&D and advanced tech development.
   • Calling for the bridging of Indian and overseas expertise in the semiconductor sector.

5. International Investment:

   • Applied Materials: $5 billion investment over the next decade, including the establishment of a 140-acre semiconductor research park and increasing supply-chain capacity.
   • Lam Research: Plans to invest Rs 10,000 crore to build a silicon-component manufacturing facility focused on advanced semiconductor technologies.
   • Micron Technology: Began shipping products from its Sanand facility in Gujarat; aims to scale production significantly in the coming years.

6. Global Perspective:

   • Shift noted in the industry from planning to actual production, reflecting trust and confidence in India's semiconductor potential.
   • Infineon Technologies expanding its workforce in India; more than 2,800 employees, indicating the growing global involvement in the Indian semiconductor ecosystem.

7. Technological Development:

   • Indian researchers contributing significantly to R&D with over 3,700 patents and inventions recorded by Micron Technology.
   • Emphasis on developing domestic capabilities in the semiconductor value chain.

Conclusion: India is positioning itself as a global alternative for semiconductor manufacturing amid rising global demand. The government's strategic initiatives and partnerships, alongside private sector investments and technological advancements, underscore a significant shift towards self-reliance in semiconductor production.