New Delhi [India]: India’s semiconductor market is on track to exceed $150 billion by 2030, with AI semiconductors alone presenting a $21 billion opportunity, according to a report by Basic Roots Consulting.
Key Highlights from the Report:
1. Semiconductor Startups & Workforce
- Over 100 semiconductor startups are currently operating in India.
- Bengaluru dominates the startup ecosystem, with two-thirds of semiconductor startups based in the city.
- India contributes 20% of the global semiconductor integrated circuit (IC) design workforce.
- The number of semiconductor design startups has grown 2.4x since 2014, showing strong momentum.
2. India’s Semiconductor Manufacturing Growth
- $18 billion has been invested across five semiconductor projects, shaping India’s semiconductor ambitions.
- Companies like Tata, Micron, and Keynes are actively investing in advanced chip packaging and testing.
- Growing OSAT and ATMP ecosystem:
- OSAT (Outsourced Semiconductor Assembly and Test) refers to companies specializing in chip packaging and testing.
- ATMP (Assembly, Testing, Marking, and Packaging) focuses on final chip assembly.
3. Government Support & Incentives
- 50% of semiconductor manufacturing costs are set to be fulfilled by the central government.
- The Semicon India Programme has been launched with ₹76,000 crore ($9 billion) to support semiconductor and display manufacturing.
- India Semiconductor Mission (ISM) has been set up as an independent division within Digital India Corporation to drive long-term strategies.
4. Key Challenges for India’s Semiconductor Industry
Despite rapid growth, the report identifies several challenges:
- Lack of advanced semiconductor fabs: The industry is still dominated by foreign players like TSMC and Samsung.
- Supply chain dependencies: Heavy reliance on imports for wafers, photomasks, specialty gases, and chemicals.
- Capital-intensive industry: Building semiconductor fabs requires multi-billion-dollar investments.
Conclusion
India’s semiconductor ecosystem is expanding rapidly, fueled by rising digital adoption, strong government incentives, and a growing startup base. However, overcoming supply chain dependencies, building advanced fabrication plants, and securing large investments will be crucial to achieving self-sufficiency in semiconductor manufacturing.