India’s push to build a domestic semiconductor industry could reduce chip imports by $10–20 billion, according to a McKinsey report. With the country’s semiconductor market projected to grow from $34.3 billion in 2023 to $100.2 billion by 2032, the report emphasizes the need for targeted government incentives and global tech partnerships to realize this potential.
India currently excels in semiconductor design, contributing 20% of the global design workforce and hosting major R&D hubs. The government has committed $10 billion in incentives to attract large-scale investments in outsourced semiconductor assembly and testing (OSAT) and legacy-node fabrication. Several mega-projects worth $3–11 billion have already been announced in the past year.
Despite this momentum, India faces challenges in scaling up to advanced fabrication, such as high capital costs, limited access to cutting-edge tech, and domestic supply chain gaps—especially in high-purity gases and ultrapure water.
India aims to achieve fabrication at nodes above 14nm by 2030, with sub-10nm nodes expected later. Strategic alliances with leading global chipmakers are seen as crucial to accelerate progress and position India within the global semiconductor value chain.
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