According to www.indiabusinesstrade.in, the Government of India is preparing to invest between $45 billion and $60 billion over the next decade to build a fully integrated domestic semiconductor supply chain, with completion targeted by 2035.
NITI Aayog Roadmap and Market Context
The initiative is grounded in a comprehensive roadmap developed by NITI Aayog, India’s premier policy think tank. The report projects that the global semiconductor market will expand from $631 billion in 2024 to $1.547 trillion by 2035. To capture value from this growth, India aims to establish a domestic semiconductor value chain worth $120–150 billion by 2035. This target includes design, fabrication, assembly, testing, packaging, and equipment manufacturing — all currently underdeveloped in India.
India imported nearly $150 billion worth of semiconductors over the last eight years, with annual import growth averaging 23%. Without domestic capacity, semiconductor imports could reach $240 billion by 2035, deepening strategic reliance on foreign suppliers.
National Security and Strategic Partnerships
The roadmap explicitly links semiconductor self-reliance to national security, citing critical dependencies in AI systems, defence platforms, telecommunications infrastructure, electric vehicles (EVs), and consumer electronics. It warns that geopolitical disruptions — particularly involving Taiwan, which accounts for over 60% of global advanced logic chip production — would severely constrain global supply. As a mitigation strategy, the plan prioritizes technology and investment partnerships with the United States, Japan, and South Korea.
This aligns with India’s broader Semiconductor Mission, launched in December 2021 with an initial outlay of $10 billion in fiscal incentives. To date, the mission has approved four proposals — including two wafer fabrication units and two compound semiconductor facilities — with total committed investments exceeding $12.5 billion.
Supply Chain Implications for Practitioners
For supply chain professionals, the scale and scope of the plan signal near-term shifts in procurement, logistics, and risk planning. Import substitution will require re-engineering of electronics bill-of-materials (BOMs) across automotive, telecom, and industrial sectors — industries where India currently sources >90% of chips from Taiwan, South Korea, and China. Localisation mandates may accelerate dual-sourcing strategies, while new domestic fabs will demand specialised logistics for ultra-pure chemicals, silicon wafers, and precision tools — all requiring temperature-controlled, contamination-free transport and customs clearance within 72-hour windows.
The initiative also reflects wider regional trends: the U.S. CHIPS and Science Act allocates $52.7 billion for domestic semiconductor manufacturing; Japan’s subsidies for chipmakers total $6.8 billion; and South Korea’s K-Chips Act commits $45.6 billion through 2030. India’s $60 billion proposal positions it as the largest public investment commitment among emerging economies pursuing end-to-end chip sovereignty.
Source: www.indiabusinesstrade.in
Compiled from international media by the SCI.AI editorial team.
