Les politiques publiques, talents et effet d’échelle : pourquoi l’Inde est en train de devenir le prochain grand pôle mondial des semi-conducteurs
India’s ambition to become a global semiconductor and artificial intelligence hub is gaining tangible momentum, backed by multi-billion-dollar government incentives, rising domestic demand, and a rapidly expanding innovation ecosystem.
As global supply chains face realignment due to geopolitical tensions and lessons from pandemic-era disruptions, India is positioning itself as a stable and scalable alternative in the semiconductor value chain.
India’s semiconductor market, valued at approximately $38 billion in 2023, is projected to reach $45–50 billion by 2025 and exceed $100 billion by 2030. The global semiconductor industry, meanwhile, is expected to approach $1 trillion by the end of the decade, creating space for new manufacturing hubs.
Policy at the Core of the Strategy
India’s semiconductor drive formally accelerated in 2021 with the launch of the Semicon India Programme and the India Semiconductor Mission (ISM 1.0). The initiative, backed by a $9–10 billion incentive framework, offers fiscal support of up to 50% of project costs for fabrication plants, assembly and testing facilities, and semiconductor design.
The programme marked a structural shift in India’s industrial policy by targeting the entire semiconductor value chain, from design and fabrication to packaging and materials, rather than focusing on isolated segments.
To date, more than 10 semiconductor manufacturing and packaging projects have been approved, with total investment commitments exceeding $20 billion. These projects are spread across multiple states, including Gujarat, Assam, and Uttar Pradesh, and are expected to generate tens of thousands of direct and indirect jobs.
The coordinated involvement of both central and state governments, through infrastructure support, tax incentives, and fast-track approvals, has significantly improved project viability and strengthened investor confidence.
ISM 2.0 Signals Long-Term Policy Continuity
In the Union Budget 2026–27, the government launched ISM 2.0, reinforcing its long-term commitment to the semiconductor sector, an important signal for investors in capital-intensive industries.
The second phase broadens the focus beyond fabrication to include semiconductor equipment manufacturing, advanced materials, resilient supply chains, and the development of indigenous intellectual property, while also promoting industry-led research and training centres.
Complementing this effort, the Electronics Components Manufacturing Scheme has seen its outlay increased to approximately $5 billion, with the objective of strengthening domestic production of critical inputs such as printed circuit boards and advanced electronic materials.
Analysts note that this policy continuity, scale of support, and ecosystem-driven approach are key factors enhancing India’s attractiveness as a global semiconductor investment destination.
Major Projects Take Shape
India’s semiconductor ambitions are increasingly reflected in large-scale industrial projects.
Tata Electronics is developing a fabrication facility in Gujarat in partnership with Powerchip Semiconductor Manufacturing Corporation, involving an estimated $10 billion investment and a planned capacity of 50,000 wafers per month.
Meanwhile, Micron Technology is investing approximately $2.7 billion in a semiconductor assembly and testing facility, strengthening India’s role in the memory segment.
Additional collaborations with Renesas Electronics and Foxconn are further expanding India’s packaging and electronics manufacturing ecosystem.
These projects are contributing to the emergence of semiconductor clusters supported by infrastructure, reliable power supply, and logistics connectivity.
Talent and Market Scale
India’s advantages extend beyond policy incentives.
The country accounts for nearly 20% of the global semiconductor design workforce, with an estimated 200,000 engineers working in chip architecture, verification, and embedded systems.
Global firms such as NXP Semiconductors and Analog Devices are expanding research and engineering operations in India.
At the same time, India’s electronics production is projected to reach $300 billion by 2026, generating strong domestic demand for chips across automotive, telecom, industrial, and consumer sectors.
AI Strategy Adds Momentum
India’s semiconductor strategy is closely aligned with its artificial intelligence ambitions. The government-backed IndiaAI Mission is investing in shared compute infrastructure, datasets, and responsible AI frameworks.
The recent India AI Impact Summit 2026 in New Delhi underscored the country’s intent to shape global AI governance discussions while driving sectoral AI adoption in healthcare, agriculture, and manufacturing, further increasing demand for advanced semiconductors.
Strategic Implications
Global semiconductor production remains heavily concentrated in Taiwan, South Korea, and the United States. Supply chain diversification has therefore become a priority for both governments and corporations.
India’s combination of policy support, domestic market scale, engineering talent, and geopolitical positioning as a democratic economy is increasingly seen as a compelling alternative.
Outlook to 2030
With investment commitments nearing $20 billion, policy backing across two phases of its semiconductor mission, and growing alignment with AI development, India is entering a critical execution phase.
If implementation continues at pace, industry observers say India could emerge as a significant global semiconductor manufacturing and innovation hub by 2030.
For investors reassessing global supply chains, the shift is becoming clearer: India is moving beyond being a technology consumer and positioning itself as a strategic technology producer.
Biren Shah
International Project Management Expert, Advisor of column Opinion Indian
