- India needs $135-180 billion over a decade to build a competitive semiconductor ecosystem
- Government expected to fund one-third to de-risk projects and attract private investment
- Semiconductor value chain target set at $120-150 billion by 2035 amid rising domestic demand
India will need investments of $135-180 billion over the next decade to build a globally competitive semiconductor ecosystem, with the government expected to fund at least one-third of that amount to de-risk projects and crowd in private capital, according to a new NITI Aayog roadmap.
The report, titled Future of India's Semiconductor Industry, said India should target building a $120-150 billion semiconductor value chain by 2035 as domestic demand for chips surges rapidly.
India's semiconductor demand is projected to rise from around $90 billion by FY30 to nearly $200 billion by FY35, growing at a compound annual rate of 19%, the report noted.
To support that scale-up, NITI Aayog recommended that the government commit $45-60 billion over ten years as anchor capital, arguing that semiconductor manufacturing globally requires sustained state backing because of its high capital intensity and long gestation periods.
The report said India's production strategy should focus on selective depth rather than attempting to replicate the entire global semiconductor manufacturing chain. It identified wafer fabrication, advanced packaging and OSAT, semiconductor materials and substrates, and mission-critical chip manufacturing as priority areas.
NITI Aayog also recommended creation of large semiconductor manufacturing zones with standardised governance and utilities to improve scale and integration into global supply chains.
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The roadmap placed significant emphasis on advanced packaging technologies such as chiplets, 2.5D and 3D integration, and system-in-package solutions, suggesting India should position itself as a global packaging and integration hub rather than compete head-on in the most capital-intensive advanced-node fabrication race.
The report also flagged talent development as a critical challenge, calling for a national fab academy, dedicated semiconductor-focused engineering programmes and global talent partnerships to build a semiconductor-ready workforce.
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