India is rapidly transforming from a software services hub into a major player in the global semiconductor and AI sectors, driven by significant investments, government incentives, and strategic initiatives aimed at achieving technological self-reliance.

Projections indicate that India's semiconductor market will reach $55 billion by 2026, fueled by increased local manufacturing and integration into the global supply chain.

The country aims to diversify supply chains, reduce reliance on East Asian manufacturing, and leverage its extensive human capital, with over 20% of the world's semiconductor design workforce and 1.5 million engineers graduating annually.

India has approved multiple projects for silicon carbide (SiC) semiconductor fabrication, marking a move into next-generation materials essential for power electronics and high-frequency applications.

Despite challenges such as high capital requirements and skill gaps, ongoing projects and international collaborations suggest a strong long-term growth trajectory for India’s semiconductor industry.

The government, along with domestic and international stakeholders, is working to develop a comprehensive ecosystem for semiconductor research, manufacturing, and innovation to achieve self-sufficiency and global leadership.

Major advancements include the launch of new fabrication plants and advanced packaging facilities, such as Micron's $2.75 billion ATMP plant in Gujarat and Tata Electronics' $11 billion fab in Dholera, with production expected by 2025-2026.

India is establishing high-volume manufacturing capabilities with facilities like Micron's assembly and testing plant and Tata's semiconductor fab, focusing on 28nm technology for automotive, mobile, and AI applications.

India emphasizes self-reliance in semiconductors to reduce import dependency and strengthen domestic manufacturing.

India is expanding its outsourced semiconductor assembly and testing (OSAT) capacities, exemplified by Kaynes Semicon's new Gujarat facility, which plans to produce up to 6.3 million chips daily, including India's first commercial chip module in October 2025.

India has established advanced chip design centers for 3nm and 2nm nodes in Noida and Bengaluru, with global companies like ARM investing, positioning the country among the few capable of designing cutting-edge chips for AI and energy efficiency.

Major projects like the Tata-PSMC fabrication plant in Gujarat, with an investment of around $11 billion, are set to begin chip production by late 2025, supporting sectors such as automotive and embedded AI with up to 50,000 wafers per month.

India’s semiconductor advancements contribute to global technology sovereignty, economic growth through high-tech jobs, and enhanced national security through self-reliance in critical digital infrastructure.