India aims to build $120‑150 billion semiconductor value chain by 2035

India should target to build a $120‑150 billion semiconductor value chain by 2035, NITI Aayog said on Tuesday. The think‑tank emphasized that the scale of investment will require the centre to shoulder at least one‑third of the funding to de‑risk projects and anchor long‑term investor confidence. The announcement comes as Delhi seeks strategic self‑sufficiency and a stronger foothold in the global chip market.

What happened

NITI Aayog released a detailed proposal outlining a roadmap for a domestic semiconductor ecosystem worth between $120 billion and $150 billion by the year 2035. The plan calls for coordinated public‑private partnerships, with the central government committing roughly 33 percent of the total capital required. By de‑risking early‑stage ventures, the agency hopes to attract multinational chip makers and nurture home‑grown firms. The proposal also flags technology sovereignty and national security as core motivations, noting that a robust semiconductor supply chain reduces dependence on external sources.

Why it matters

A home‑grown semiconductor value chain would transform India’s tech landscape. Chips are the backbone of everything from smartphones to defence systems, and current import dependence leaves the country vulnerable to supply shocks. By committing a sizable share of the investment, the government signals confidence that could unlock foreign direct investment, accelerate skill development, and create high‑value jobs. Moreover, a domestic ecosystem would enable Indian companies to design and manufacture chips tailored to local needs, potentially lowering costs for downstream industries such as automotive, IoT and renewable energy.

The bigger picture

Globally, the semiconductor industry is projected to exceed $600 billion in annual revenues, with Asia‑Pacific accounting for more than half of production capacity. India, despite a large software services base, lags behind neighbours like Taiwan, South Korea and China in chip fabrication. Recent policy moves—such as the Production‑Linked Incentive (PLI) scheme for electronics and the establishment of a semiconductor design hub in Bengaluru—show a growing appetite for building the missing links. NITI Aayog’s $120‑150 billion target aligns with these efforts, aiming to bridge the gap between design talent and manufacturing capability.

What’s next

Implementation will hinge on how quickly the centre can mobilise the promised one‑third investment and translate it into tangible projects. Watch for the rollout of dedicated semiconductor parks, tax incentives and streamlined regulatory approvals. Industry observers expect the first wave of fab construction to begin within two years, followed by a focus on advanced nodes and packaging technologies. Success will also depend on upskilling the workforce; partnerships with academic institutions and vocational training programs are likely to expand. International collaboration—particularly with countries that have mature chip ecosystems—could accelerate technology transfer.

Key takeaways

• NITI Aayog sets a $120‑150 billion semiconductor value‑chain target for 2035.
• The government plans to fund at least one‑third of the required investment to de‑risk projects.
• A domestic chip ecosystem is framed as essential for strategic self‑sufficiency and national security.
• The proposal dovetails with existing PLI schemes and new semiconductor parks.
• Monitoring early‑stage fab construction, policy incentives and skill‑development initiatives will indicate progress.