When we talk about the India semiconductor industry, the ecosystem of companies designing, manufacturing, and assembling electronic chips within India. Also known as India chip industry, it’s no longer just a future dream—it’s becoming a reality fueled by policy, investment, and urgent global supply needs. For years, India imported nearly all its chips—from smartphones to cars to defense systems. But now, with the Semiconductor Mission, a government-led initiative to build domestic chip production capacity in India, things are changing fast. The goal? To cut imports, create jobs, and make India a hub for electronics manufacturing under Make in India, a national program encouraging local production across industries, including high-tech sectors like semiconductors.
The India semiconductor industry isn’t about building giant fabs like Taiwan or South Korea—not yet. It’s starting with assembly, testing, and packaging (ATP), where India already has strong skills from decades of electronics repair and component handling. Companies like Tata Electronics, a major Indian industrial group investing heavily in semiconductor packaging and electronics manufacturing are building new plants. Others, like Vedanta, a resource conglomerate entering the semiconductor space with plans for a silicon wafer plant, are betting big on raw material processing. Even startups are popping up, focusing on chip design for AI, IoT, and automotive use cases. This isn’t just about making chips—it’s about building an entire supply chain, from design tools to skilled engineers to testing labs.
What’s holding it back? Access to cutting-edge equipment, high energy costs, and a shortage of engineers trained in advanced lithography. But the momentum is real. With global brands like Apple, Intel, and Qualcomm looking for alternatives to China, India’s low labor costs, large tech talent pool, and supportive policies are turning heads. The electronics manufacturing industry, the broader sector that includes smartphones, wearables, and home appliances made in India is already booming—and semiconductors are the missing link. Without local chips, India’s electronics factories will keep depending on imports. With them, the entire value chain can stay home.
What follows is a collection of real insights, data, and stories from India’s manufacturing landscape—some directly about chips, others about the industries that depend on them. You’ll find what’s working, who’s leading, and where the gaps still exist. This isn’t theory. It’s what’s happening on the ground, right now.
India's electronics industry produced $180 billion in 2024, growing ninefold since 2014. It now manufactures smartphones, TVs, laptops, and components, with exports hitting $40 billion. Government incentives and local firms are driving rapid expansion.