How 2024 Defined the Roadmap for 2025 and Beyond During the Semicon India 2024 event, the Hon'Ble Prime Minister unveiled a bold vision: To see an "Indian chip in every device"
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
I ndia's semiconductor industry is projected to grow to USD 80 billion by 2028 from the current USD 23 billion, as per SEMI. The major factor behind this development can be attributed to surging demand for electronics, the rise of smart connected devices highlighted the urgent need for self-reliance in chip design and manufacturing; In this, India has grown significantly in prioritizing local production.
BUILDING A COMPLETE ECOSYSTEM WITHIN THE BORDERS
During the SEMICON India 2024 event, the Hon'ble Prime Minister unveiled a bold vision: to see an "Indian chip in every device." This statement reflects not just ambition but a strategic direction for the nation's semiconductor industry. The government has reemphasised on a range of tailored initiatives, most notably the Design Linked Incentive (DLI) and Production Linked Incentive (PLI) schemes. Under the DLI scheme, several comprehensive incentives have been implemented to support the growth of fabless semiconductor companies and bolster the broader ecosystem. By definition, a fabless company is a semiconductor company that designs and markets semiconductors but outsources their fabrication to a third-party foundry.
Through this initiative, the government offers financial incentives as well as design infrastructure support across various stages of development and deployment of semiconductor design(s) for Integrated Circuits (ICs), Chipsets, Systems on Chips (SoCs), Systems & IP Cores and semiconductor linked design(s) over a period of 5 years. The scheme covers up to 50 per cent of eligible expenses for designing semiconductor goods, with a cap of 15 crore per DLI-awardee. The scheme also provides tooling and other infrastructure to these companies. Regarding the fab ecosystem, a standout development was the Tata Group's decision to establish a semiconductor manufacturing facility in Dholera, Gujarat, in collaboration with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC).
Complementing this initiative is Tata's INR 27,000 crore investment in Assam to set up a semiconductor assembly and testing facility designed to produce an astounding 48 million chips daily. Together, fab (fabrication) and fabless semiconductor design developments have positioned India to craft a global identity in this critical domain, ensuring that every component, from chip design to advanced manufacturing, is seamlessly built within its borders. Undoubtedly, the India Semiconductor Mission (ISM) is at the core of this transformation, a strategic initiative to enhance domestic manufacturing capabilities and attract investments in chip design, fabrication, and packaging.
2025 AND BEYOND
Going forward, we need to make sure that we make good the investments that have been committed. One must remember that chip design has a longer gestation period than other verticals. Staying the course and seeing the currently approved projects to fruition will be the most important step in achieving self-sufficiency in chip design and production.
The upcoming years are vital for developing indigenous design and fabrication capabilities, improving R&D infrastructure, and educating a talented workforce. A strong domestic supply chain that can satisfy local and export demands will be a critical driver for India, in industries like IoT, telecom, automotive, industry 4.0 and so on. Collaborations with international entities also will play a major role in establishing a global semiconductor value chain.
