NITI Aayog, India's premier policy think tank, has released a report forecasting that the country's semiconductor market is projected to reach approximately $200 billion by 2035. The report, titled 'Future of India's Semiconductor Industry', outlines a strategic roadmap for the nation to become a global hub for semiconductor manufacturing and design.
Key Recommendations for Public Funding
The report emphasizes the need for targeted public investment in critical areas to accelerate growth. It suggests that fabs (fabrication units), advanced packaging technologies, compound semiconductors, and critical design infrastructure should be prioritised for public funding. These segments are identified as foundational for building a self-reliant semiconductor ecosystem in India.
Focus on Fabs and Advanced Packaging
Fabs are essential for chip manufacturing, and the report recommends establishing multiple fabrication units to reduce import dependency. Advanced packaging is highlighted as a key enabler for high-performance chips used in AI, 5G, and automotive applications. Compound semiconductors, such as gallium nitride and silicon carbide, are noted for their efficiency in power electronics and RF devices.
Design Infrastructure as a Priority
The report also underscores the importance of strengthening design infrastructure, including electronic design automation tools, intellectual property cores, and skilled talent. By nurturing design capabilities, India can capture higher value in the semiconductor value chain.
Published on 29 May 2026, the report comes at a time when global supply chains are diversifying, and India is positioning itself as a reliable partner. NITI Aayog's projections align with the government's broader push for 'Atmanirbhar Bharat' (self-reliant India) in electronics manufacturing.
Industry experts have welcomed the report, noting that achieving the $200 billion target will require sustained policy support, industry collaboration, and significant investment in research and development. The report serves as a blueprint for stakeholders to drive India's semiconductor ambitions over the next decade.
