NITI Aayog Unveils Roadmap to Build $150 Billion Semiconductor Industry

Semiconductors are increasingly recognised as one of the most strategically important technologies of the 21st century.

India has unveiled its first comprehensive long-term roadmap for the semiconductor sector, setting out an ambitious vision to transform the country from a major consumer of semiconductor products into a globally significant player across the chip manufacturing, design, packaging and innovation value chain.

Released by NITI Aayog's Frontier Tech Hub, the report titled "Future of India's Semiconductor Industry" outlines a ten-year strategy aimed at building a semiconductor ecosystem valued between $120 billion and $150 billion by 2035, positioning India as a trusted and indispensable partner in the global semiconductor supply chain.

The roadmap was unveiled by Finance Minister Nirmala Sitharaman and Union Minister for Electronics and Information Technology Ashwini Vaishnaw in the presence of policymakers, industry leaders, academic experts and stakeholders from across the semiconductor ecosystem.

The initiative marks one of India's most significant technology policy interventions and reflects the country's growing determination to achieve technological self-reliance, strengthen economic resilience and secure its place in the future digital economy.

Semiconductors Becoming the Foundation of Modern Economies

Semiconductors are increasingly recognised as one of the most strategically important technologies of the 21st century.

These tiny electronic components power virtually every aspect of modern life, from smartphones, computers and telecommunications networks to electric vehicles, healthcare equipment, defence systems, artificial intelligence infrastructure and industrial automation.

As nations accelerate investments in digital transformation and advanced technologies, semiconductors have become central not only to economic competitiveness but also to national security and technological sovereignty.

Global disruptions experienced during recent years exposed vulnerabilities in semiconductor supply chains, prompting governments worldwide to prioritise domestic capabilities and supply chain diversification.

Against this backdrop, India sees an opportunity to emerge as a major global semiconductor hub.

A Historic Opportunity for India

India currently represents one of the world's largest and fastest-growing markets for semiconductors, driven by expanding electronics manufacturing, rising digital adoption and growing demand for advanced technologies.

However, much of the country's semiconductor requirements continue to be met through imports.

The new roadmap seeks to change that dynamic by creating a robust domestic ecosystem spanning research, design, manufacturing, packaging, testing and innovation.

Officials believe that India's strengths—including its large engineering workforce, globally recognised design talent, expanding manufacturing base and growing domestic demand—provide a strong foundation for achieving this transformation.

The strategy aims not merely to participate in global semiconductor supply chains but to develop leadership positions in areas where India can create sustainable competitive advantages.

Five Pillars Driving the Semiconductor Vision

The roadmap is built around five interconnected pillars designed to create a comprehensive and resilient semiconductor ecosystem.

The first pillar focuses on advancing frontier research and strengthening India's capabilities in semiconductor design and intellectual property creation.

The second emphasises policy support and long-term investment frameworks capable of attracting patient capital into the sector.

The third pillar centres on manufacturing and production, particularly in advanced packaging technologies and compound semiconductors.

The fourth pillar addresses talent development, recognising that semiconductor leadership requires a highly skilled workforce across engineering, manufacturing, research and management disciplines.

The fifth pillar focuses on international partnerships with trusted nations and global industry leaders to strengthen supply chains and facilitate technology collaboration.

Together, these pillars are intended to create a self-reinforcing ecosystem capable of supporting long-term growth and innovation.

India Targets Leadership in Advanced Packaging

One of the roadmap's most notable priorities is positioning India as a global leader in advanced semiconductor packaging and OSAT (Outsourced Semiconductor Assembly and Test) services.

Advanced packaging has emerged as one of the fastest-growing segments of the semiconductor industry as manufacturers seek new ways to improve performance, reduce power consumption and support increasingly complex chip architectures.

Industry experts note that packaging is becoming nearly as important as chip fabrication itself in determining overall system performance.

India sees advanced packaging as an area where it can rapidly build scale and establish a strong global presence.

The roadmap identifies this segment as a strategic opportunity capable of generating substantial economic value while integrating India more deeply into global supply chains.

Focus on Compound and Wide-Bandgap Semiconductors

Another major focus area involves compound semiconductors and wide-bandgap materials.

Unlike conventional silicon chips, these advanced semiconductor technologies offer superior performance in applications requiring high power efficiency, faster switching speeds and greater thermal resistance.

They are increasingly used in electric vehicles, renewable energy systems, industrial automation, telecommunications infrastructure and aerospace technologies.

The roadmap envisions India becoming a significant global supplier in this rapidly growing segment, recognising its strategic importance for future industries.

As global demand for clean energy and advanced electronics continues to increase, compound semiconductors are expected to play an increasingly important role in technological innovation.

Strengthening Semiconductor Design Capabilities

India already enjoys a strong reputation as a global centre for semiconductor design.

Many of the world's leading chip companies operate major design centres in India, employing thousands of highly skilled engineers.

The roadmap seeks to build on this advantage by strengthening domestic design capabilities and encouraging the development of indigenous intellectual property.

One of its key objectives is the creation of more than 100 advanced semiconductor design IPs over the coming decade.

Officials believe that greater ownership of semiconductor intellectual property will enhance India's technological independence while creating high-value economic opportunities.

The emphasis on design reflects a broader strategy of moving beyond manufacturing and establishing leadership across multiple stages of the semiconductor value chain.

India Semiconductor Mission 2.0 Gains Momentum

The roadmap closely aligns with the priorities outlined under the India Semiconductor Mission (ISM) 2.0, announced in the Union Budget 2026.

According to government leaders, the next phase of India's semiconductor journey will place a strong emphasis on ecosystem deepening rather than simply attracting investment.

This means strengthening capabilities across design, materials, manufacturing, packaging, research and development, workforce development and international collaboration.

Officials describe this shift as moving from ecosystem creation to ecosystem maturation.

The objective is to ensure that investments translate into sustainable capabilities capable of supporting long-term competitiveness.

Building Technological Sovereignty

A recurring theme throughout the roadmap is the concept of technological sovereignty.

As geopolitical competition increasingly revolves around control over critical technologies, countries are seeking greater independence in areas considered essential to national security and economic resilience.

Semiconductors sit at the centre of this debate because they underpin virtually every modern technology platform.

Government leaders have argued that reducing dependence on externally controlled technologies is essential for safeguarding long-term national interests.

The roadmap therefore positions semiconductor development not merely as an industrial policy objective but as a strategic national priority.

Creating a World-Class Semiconductor Workforce

The semiconductor industry requires specialised skills across engineering, research, manufacturing and management.

Recognising this challenge, the roadmap places significant emphasis on talent development.

India already produces a large number of engineering graduates each year, but expanding semiconductor capabilities will require targeted education, specialised training and industry-academia collaboration.

Developing a comprehensive talent pipeline is viewed as essential for supporting future growth and maintaining competitiveness in a highly specialised global industry.

The roadmap therefore encourages investments in education, research institutions and workforce development initiatives.

Strengthening Global Partnerships

The report also recognises that semiconductor ecosystems are inherently global.

No single country currently controls every aspect of semiconductor production, making international collaboration essential.

India plans to deepen partnerships with trusted nations, global manufacturers, research institutions and technology companies to accelerate capability development and strengthen supply chain resilience.

Such partnerships are expected to facilitate knowledge transfer, investment flows, research collaboration and access to advanced technologies.

Officials view these relationships as critical for positioning India within the evolving global semiconductor landscape.

Supporting Viksit Bharat 2047

The semiconductor roadmap is closely linked to India's broader vision of becoming a developed nation by 2047.

Advanced technologies such as artificial intelligence, electric mobility, digital public infrastructure, defence systems and smart manufacturing all depend on reliable access to semiconductors.

By strengthening domestic capabilities, India hopes to support innovation across multiple sectors while reducing external dependencies.

Government leaders have described semiconductor development as a long-term national mission requiring sustained commitment over decades rather than years.

Looking Ahead

The release of the "Future of India's Semiconductor Industry" roadmap represents a significant milestone in India's technological development journey.

With clear targets, strategic priorities and a long-term vision extending to 2035, the roadmap provides a structured framework for building a globally competitive semiconductor ecosystem.

Its focus on advanced packaging, semiconductor design, compound semiconductors, talent development and trusted international partnerships reflects a pragmatic approach that leverages India's existing strengths while preparing for future opportunities.

As global demand for semiconductors continues to surge, India's efforts to establish itself as a major player in this critical industry could have far-reaching implications for economic growth, technological leadership and national security.

If successfully implemented, the roadmap may ultimately transform India from one of the world's largest semiconductor markets into one of its most influential semiconductor powers, helping shape the future of the global digital economy.