India’s Leap Towards 5% Global Semiconductor Market Share by 2030

India’s Semiconductor Mission, "Semicon 2.0," targets capturing 5% of the global chip market by 2030. Supported by a $10 billion incentive plan, five projects have been approved, with a combined capacity of 91 million chips per day. Key players include Suchi Semicon, Polymatech Electronics, and Micron Technology. India aims to expand its ecosystem and compete globally, challenging Taiwan and Malaysia. A ₹1.55 trillion investment across six plants underpins this initiative, aiming to meet domestic and export demands while bolstering India's tech ambitions.

India is gearing up to carve a significant niche in the global semiconductor chip manufacturing landscape with a bold target of capturing 5% of the worldwide market by 2030. This ambitious vision marks the next phase of the India Semiconductor Mission, aptly dubbed "Semicon 2.0." The government has already allocated funds from its $10 billion incentive package to support semiconductor fabrication (fab) facilities, Outsourced Semiconductor Assembly and Test (OSAT) units, and Assembly, Testing, Marking, and Packaging (ATMP) companies. Five projects have already received approval under this initiative, setting the stage for India’s semiconductor journey.

A senior official from the Ministry of Electronics and Information Technology (MeitY) expressed optimism about the mission while acknowledging the challenges ahead: “We are just at the beginning of this journey and have a long way to go. Achieving a 5% share in global semiconductor production requires substantial effort.”

Progress So Far: A Snapshot

The India Electronics & Semiconductor Association (IESA) reports that MeitY has cleared projects with a combined capacity to produce over 75 million chips daily. When adding state-approved projects, the figure rises to an impressive 91 million chips per day.

Ashok Chandak, president of IESA and Semiconductor Equipment and Materials International (SEMI) India, highlighted the significance of these numbers: “The approved projects under MeitY alone will generate 75 million chips daily. With state-backed initiatives contributing an additional 16 million chips per day, India is well-positioned to meet a portion of its domestic demand while also exploring export opportunities.”

Key Projects and Their Contributions

Several notable projects are contributing to India's semiconductor ambitions:

• Suchi Semicon in Gujarat, RRP Electronics in Maharashtra, and RIR Power Electronics in Odisha are collectively set to produce 10 million chips per day once operational.

  
  

• Polymatech Electronics, headquartered in Chennai, is already functional with a capacity of 6 million chips daily. The company is also expanding with a new facility in Chhattisgarh.

  
  

• Micron Technology is expected to release its first "Make in India" chips by the end of this year. While its production capacity has not been officially disclosed, industry estimates suggest it will produce approximately 4.8 million chips per day.

  
  

These developments signify only the initial phase of India’s semiconductor strategy, with more investments and expansions expected in the coming years.

Global Context and Competition

Globally, semiconductor manufacturing capacity stood at 31 million wafers per month in 2024, equating to roughly 1 million wafers per day, according to SEMI’s World Fab Forecast. Ajit Manocha, president of SEMI Global, noted that this capacity is measured in terms of 200-millimeter-equivalent wafers.

India faces stiff competition from established players. Malaysia holds a 14% share of the global OSAT market, while Taiwan dominates with over 40%. Despite this, India has set its sights on claiming 25% of the ATMP/OSAT market within the next decade, as stated by MeitY Minister Ashwini Vaishnaw during an interview last year.

Building the Ecosystem

Under Semicon 2.0, the focus extends beyond chip manufacturing to include the development of a robust ecosystem. This involves establishing a reliable supply chain for specialized chemicals, gases, and other critical inputs required for semiconductor fabrication. Strengthening this ecosystem is essential for scaling up India’s chip production capacity and ensuring its competitiveness in the global market.

Investment Landscape

The total investment across the six upcoming semiconductor plants exceeds ₹1.55 trillion. Among these, the largest share—₹91,000 crore—is earmarked for Tata’s fab plant. The other five projects, focusing on OSAT and ATMP operations, will contribute to the rollout of the final "Make in India" chips.

The Road Ahead

India’s semiconductor mission is a bold attempt to position the country as a key player in the global chip manufacturing industry. While challenges like global competition and ecosystem development persist, the progress made so far reflects India’s determination to achieve its ambitious goals. If successful, this initiative could not only meet domestic demand but also establish India as a significant exporter of semiconductor chips in the near future.

India’s journey into the semiconductor sector is a testament to its aspirations of becoming a global tech manufacturing hub. With strategic investments and a clear roadmap, the country is well on its way to leaving a lasting mark on the global semiconductor industry.