With the global semiconductor industry—involving countries such as Taiwan, South Korea, Japan, China, and the US—projected to reach USD 1 trillion by 2030, India is emerging as a trusted and reliable partner in diversifying global chip manufacturing. These chips act as the “brain” of devices ranging from smartphones to satellites.
According to official estimates, India’s domestic market is expected to touch USD 100–110 billion by 2030.
Currently, Taiwan alone produces over 60 per cent of the world’s semiconductors and nearly 90 per cent of the most advanced chips.
India, which was earlier focused on chip designing and packaging, decided to venture into manufacturing after the chip scarcity during the COVID-19 pandemic. Within four years, the country is on its way to building a strong manufacturing ecosystem, a government document said.
“India is transitioning from assembling devices to advanced chip design and manufacturing. The focus is on designing and producing chips in India for the world,” it said.
Earlier this week, Union Electronics and IT Minister Ashwini Vaishnaw said that India’s growing pool of skilled talent is attracting global semiconductor design companies in large numbers.
“We are working on the complete semiconductor stack — designing chips, manufacturing them, building the equipment and materials that go into making them, and developing the talent pipeline. The progress is very good, and this is just the beginning,” he said.
Addressing a gathering after inaugurating chip design giant ARM’s new office in Bengaluru, the minister said that one of the key goals of India’s Semiconductor Mission is to build a strong and deep talent pipeline, and this effort is now showing results.
“Under the Semiconductor Mission, one of our major targets is to develop a deep talent pipeline, and this is reflected in the way so many global design companies are coming to India because the talent is here,” the minister added.
The government highlighted that the Semiconductor Mission is supporting 278 universities and institutions across the country, where students now have access to the world’s latest EDA tools for chip design.
“So far, 28 chips have already been designed by students. This reflects the confidence that global semiconductor companies have in India,” the official document said.
Semiconductors are the essential building blocks of modern electronics, acting as the hidden brains that make devices work. They are tiny electronic chips that control how modern devices function. They can store, process, and transfer information, helping devices perform tasks.
Each chip contains millions—or even billions—of micro-scale switches called transistors on a fingernail-sized surface, which control electrical signals much like brain cells pass messages.
Thinner chips allow more processing capacity in less space, resulting in lighter products. Smaller transistors provide greater efficiency and reduced power consumption.
They hold strategic importance for national security, space exploration and defence applications.
According to the document, India is producing a 2 nm chip for the first time.
This technology, it said, would support next-generation devices in AI, mobile computing, and high-performance systems.
Total approved projects under the India Semiconductor Mission now stand at ten across six states with cumulative investments of Rs 1.6 lakh crore. The mission has an outlay of Rs 76,000 crore to strengthen the ecosystem.
In May this year, the Union Electronics and IT Minister inaugurated two state-of-the-art semiconductor design facilities in Noida and Bengaluru.
These are India’s first centres focused on advanced 3-nanometer chip design.
The minister had then highlighted that while India had earlier achieved 7 nm and 5 nm designs, reaching 3 nm marks a new frontier in innovation. India is now going into 2 nm chip technology.
Electronics manufacturing in India has expanded sixfold in the last decade, creating a surge in semiconductor demand.
Also, the communique said, domestic startups supported under the Design Linked Incentive (DLI) scheme are accelerating chip design.
As many as 23 chip design projects have been sanctioned, and 72 companies are now using advanced design tools.
Student innovation is also on the rise, with 28 chips taped out by teams from 25 institutions. Almost three hundred institutions and universities are engaged in semiconductor design and research, building a large talent pool, it said.
The upcoming 2 nm milestone represents a decisive step in technological self-reliance, it said, adding that this progress strengthens India’s vision of ‘Atmanirbhar Bharat’ and positions the nation as a leader in the global semiconductor industry.