India Aims to Join Top 5 Semicon League by 2032 with $10 Billion Investment

India aims to become one of the top five semiconductor nations by 2032, with a focus on chip design, advanced packaging, and talent development. The government has committed $10 billion for the first phase of the Semiconductor Mission and plans to build four to six new fabrication plants, 10 OSAT plants, and six to 10 compound semiconductor plants over the next five years. The ecosystem is being built through support for startups, academic institutions, and design infrastructure development.

India's semiconductor industry has shown significant growth over the past four years, driven by the Indian Semiconductor Mission (ISM), established in 2021. The mission has approved ten projects, including massive investments from Tata Electronics Private Limited and Micron Technology, highlighting a concerted effort to build a robust semiconductor ecosystem [1].

The ISM, under the Ministry of Electronics and Information Technology (MeitY), has been instrumental in attracting investments and implementing semiconductor schemes. In August 2025 alone, four new projects were cleared, including a packaging plant in Odisha, a manufacturing unit in Andhra Pradesh, and the expansion of a facility in Mohali, Punjab [1].

India's approach contrasts with China's inward-looking strategy. While China has focused on self-reliance and building its own technologies, India has sought to attract key anchor firms, such as those from the U.S. and Europe, to move to India. This strategy has the advantage of bringing in the entire supplier ecosystem [1].

The ISM's efforts have paid off, with India ranking among the top economies that benefited from U.S. trade policy measures related to supply chain onshoring. A recent report by Moody's highlights India's success in attracting new global investments for semiconductor projects [1].

Indian states are competing with each other to provide incentives, with Gujarat emerging as a frontrunner. Gujarat's dedicated semiconductor policy, the Dholera Special Investment Region (Dholera SIR), and Micron Technology's investment have been key factors in attracting semiconductor investments [1].

Looking ahead, India aims to become one of the top five semiconductor nations by 2032, with a focus on chip design, advanced packaging, and talent development. The government has committed $10 billion for the first phase of the Semiconductor Mission and plans to build four to six new fabrication plants, 10 OSAT plants, and six to ten compound semiconductor plants over the next five years [2].

References:
[1] https://carnegieendowment.org/research/2025/08/indias-semiconductor-mission-the-story-so-far?lang=en
[2] Writing Topic