India's Semiconductor Manufacturing Expansion
India is accelerating its semiconductor manufacturing capabilities through strategic government incentives that are attracting major global players. Recent approvals include a sixth semiconductor facility—a joint venture between HCL and Foxconn in Uttar Pradesh—set to produce display driver chips for mobile devices, laptops, and automotive systems. This development is part of India's $10 billion semiconductor incentive program launched in 2021.
Key Investments and Projects
Tata Group is constructing a $11 billion mega-fab in Gujarat with Taiwan's Powerchip Semiconductor Manufacturing Corporation, targeting automotive and AI applications. Micron Technology is establishing a Special Economic Zone in Gujarat with a $1.51 billion investment. Meanwhile, Renesas Electronics plans to begin chip production at its Gujarat OSAT facility by mid-2026. These projects are expected to create over 20,000 direct jobs.
Innovation in 2D Materials
India is exploring 2D materials like graphene and phosphorene for next-gen semiconductors, which could surpass current 3nm chips in efficiency. The government will soon invite Expressions of Interest for research hubs focused on this cutting-edge technology. This positions India to compete in advanced chip development alongside the US, China, and Japan.
Economic Impact and Future Outlook
India's semiconductor market is projected to grow from $38 billion in 2023 to $109 billion by 2030. The first domestically produced chips using 28-90nm technology are expected by late 2025, serving automotive and telecom sectors. Collaborations with the US, Japan, and the EU aim to strengthen supply chains. These initiatives could reduce India's semiconductor import dependency from 65% to 30% by 2030.