According to indiagazette.com, India’s goal of meeting 25% of global semiconductor demand by 2032 hinges on scaling fabrication and advanced packaging units, building a robust domestic supply chain, and expanding its broader manufacturing ecosystem — per a report by JM Financials.
Capital, Talent and Infrastructure Requirements
The report states that projects approved under the India Semiconductor Mission (ISM) 1.0 alone will require capital equipment worth USD 12–13 billion. It also emphasizes the need for a large pool of technical talent and dedicated maintenance facilities to sustain long-term operations. The global semiconductor market is projected to grow from USD 775 billion in 2024 to USD 1.6 trillion by 2030, while India’s domestic market is expected to reach USD 110–120 billion in the same year.
Local Supplier Network and Vendor Parks
A reliable local supplier base is critical: Tata Electronics’ fabrication facility in Dholera relies on more than 400 suppliers, which must be geographically proximate to minimize equipment downtime and enable rapid maintenance. To support this, Tata Electronics is developing a vendor park spanning over 350 acres in Dholera, offering plug-and-play infrastructure for global suppliers.
Global Equipment Makers Expand in India
ASML is considering bringing advanced lithography capabilities to India as domestic manufacturing capacity scales up. Meanwhile, Applied Materials has announced its India Vision 2035, committing USD 5 billion to expand local supply-chain capacity tenfold and build a network of over 100 suppliers. LAM Research has pledged INR 100 billion to establish its first vertically integrated silicon-component manufacturing unit in India.
Policy Progress and Project Execution
ISM 1.0 led to approval of 12 facilities, including fabrication and packaging units; ISM 2.0 now expands focus to semiconductor design. The report notes,
“The Prime Minister in his address indicated that work on ISM 3.0 is already underway.”
Execution timelines are accelerating: Tata Electronics secured approvals within 100 days of proposal submission. Its Dholera facility is scheduled to begin commercial operations by 2028, while Micron’s Sanand plant began manufacturing in February 2026 and employs over 2,000 people.
Source: indiagazette.com
Compiled from international media by the SCI.AI editorial team.
