India’s Semiconductor Mission: Pioneering a Self-Reliant Chip Ecosystem
Driving Innovation and Manufacturing in Power Semiconductors and Beyond
India's Semiconductor Mission (ISM) empowers domestic chip manufacturing through project approvals and strategic acquisitions, aiming for self-reliance in the growing semiconductor market. Discover key players, market trends, and future growth opportunities in India's semiconductor landscape.
The India Semiconductor Mission (ISM) has announced a fresh round of project approvals, signalling a renewed push to build a self-reliant chip ecosystem. This move dovetails with L&T Semiconductor Technologies’ strategic acquisition of Fujitsu General’s power module business, underlining India’s commitment to fortifying its power semiconductor capabilities in the automotive and energy sectors.
Strengthening Power-Semiconductor Expertise
L&T Semiconductor Technologies’ takeover of Fujitsu General’s power module business brings advanced IP, manufacturing know-how, and a global customer base under one roof.
This enhances L&T’s design and R&D footprint, accelerates market expansion in electric vehicles and renewable energy, and showcases India’s ability to innovate in speciality semiconductors.
Building Domestic Chip Manufacturing
India’s drive to reduce dependence on imported chips has spurred several greenfield and expansion projects under the ISM umbrella:
Catalysts for a Thriving Chip Ecosystem
A large domestic market is hungry for chips across consumer electronics, automotive, and defence.A deep pool of skilled engineering graduates is annually produced from premier institutes.
Robust government incentives, subsidies, and policy support under the Make in India and ISM frameworks.
Here’s a snapshot of the most critical numbers underpinning India’s chip ecosystem:
Segment Breakdown and Growth Drivers
Integrated Circuits held 61.5% of revenue in 2024 and will grow at a 14.1% CAGR through 2030.
The fabless design model accounted for 53.5% of the market in 2024, while pure-play foundries are set for a 16.1% CAGR.
Silicon-based semiconductors dominated with 88.8% market share in 2024; silicon carbide devices are forecast to expand at a 21.2% CAGR through 2030.
India’s semiconductor industry is on a steep upward trajectory, buoyed by strong domestic demand, targeted government incentives, and accelerating capacity additions. As design–manufacturing linkages strengthen, these statistics underscore India’s potential to transform into a significant global semiconductor hub.
Challenges & the Road Ahead
Establishing a full-stack semiconductor industry demands massive capital outlays, secure supply chains for specialised gases and substrates, and sustained talent development. Yet with strategic partnerships, localised manufacturing footprints, and a laser focus on chip design, testing, and advanced packaging, India is poised to emerge as a formidable player in the global high-tech arena.
Let’s continue to make India a semiconductor innovation hub!
