NEW DELHI, MAY 30 : India should aim to build a USD 120-150 billion semiconductor value chain by 2035 and emerge as a global leader in the sector, according to a report released by NITI Aayog on Friday.
The report, titled Future of India’s Semiconductor Industry, recommends cumulative investments of USD 135-180 billion over the next decade across semiconductor design, fabrication, advanced packaging, materials and supporting infrastructure. It suggests that the Government of India contribute at least one-third of the required investment to reduce risks, attract private capital and strengthen investor confidence.
Emphasising the need for a distinct strategy, the report says India should focus on strategic self-sufficiency, ecosystem development and global relevance rather than merely trying to catch up in the global wafer manufacturing race.
India’s semiconductor market is projected to reach around USD 200 billion by 2035, driven by rising demand from sectors such as artificial intelligence, telecommunications, electric mobility, defence, healthcare and digital infrastructure. However, nearly 90-95 per cent of the country’s semiconductor requirements are currently met through imports, creating significant foreign exchange outflows and exposing critical sectors to supply-chain disruptions.
Describing this dependence as both a strategic vulnerability and a historic opportunity, the report calls for prioritising public funding in semiconductor fabrication plants (fabs), advanced packaging, compound semiconductors and critical design infrastructure. It also stresses the importance of policy stability, predictable incentives and coordinated execution across the value chain.
NITI Aayog Vice Chairman Ashok Kumar Lahiri said technological sovereignty is essential for achieving the vision of Viksit Bharat and warned that dependence on imported “black-box technologies” poses a major strategic risk. He noted that semiconductors form the foundation of modern technologies, powering AI, manufacturing, defence, energy systems, communications and public services.
The report highlights that the global semiconductor supply chain remains highly specialised, with design largely concentrated in the United States and manufacturing and packaging dominated by East Asian countries. India, it says, must establish credibility by consistently meeting global quality and performance standards through sustained efforts and long-term investment.
Global semiconductor revenues grew at a compound annual growth rate (CAGR) of 6.5 per cent between 2014 and 2024 and are expected to expand at around 8.5 per cent annually over the next decade. India’s semiconductor demand, meanwhile, is projected to grow at a much faster CAGR of 19 per cent, reaching nearly USD 90 billion by FY2030 and potentially exceeding USD 200 billion by FY2035.
The roadmap outlined by NITI Aayog is built around five key pillars: frontier research and design intellectual property, policy and investment support, advanced packaging and compound semiconductor production, talent development across the semiconductor value chain, and strategic partnerships with trusted nations and global industry leaders.
Releasing the report, Finance Minister Nirmala Sitharaman said India is committed to moving from being a major consumer of chips to becoming an indispensable part of the global semiconductor value chain. She noted that advanced packaging, compound semiconductors, wide-bandgap materials and AI-native chip design offer significant opportunities for India.
Union Minister Ashwini Vaishnaw said semiconductors will shape the next phase of global economic and technological leadership. He said India is focused on developing the entire ecosystem—from design and talent to materials, equipment, fabrication and advanced packaging—to position itself as a trusted and dependable partner in the global semiconductor supply chain.
