1. Introduction

Semiconductors have become the backbone of the modern digital economy, powering everything from smartphones and laptops to electric vehicles, artificial intelligence systems, telecommunications networks, and defense technologies.

Recognizing their strategic importance, the Government of India has identified semiconductor manufacturing as a key pillar of its vision for technological self-reliance and economic growth.

According to the NITI Aayog’s report Future of India’s Semiconductor Industry, India imported semiconductor products worth nearly USD 150 billion between FY2017 and FY2025. If current trends continue, annual semiconductor imports could reach approximately USD 240 billion by 2035. This growing dependence on foreign suppliers exposes the country to supply-chain disruptions, geopolitical risks, and rising import costs.

The report highlights that India should not attempt to directly compete with established semiconductor giants such as Taiwan, South Korea, or the United States in cutting-edge chip fabrication. Instead, it recommends focusing on segments where India can build long-term competitive advantages and become an indispensable part of the global semiconductor value chain.

2. Origin and Intent

The roadmap has been developed as a long-term strategy to transform India into a significant semiconductor hub by 2035. It proposes the creation of a domestic semiconductor value chain worth USD 120–150 billion, supported by ecosystem investments estimated at USD 135–180 billion through an expanded India Semiconductor Mission (ISM 2.0).

To achieve this objective, the framework is built around five strategic pillars, known as the “5Ps.”

Pioneering focuses on future technologies such as chiplets, Electronic Design Automation (EDA) tools, advanced research, and innovation. Rather than replicating existing global capabilities, India aims to invest in next-generation technologies that will shape the future of semiconductor manufacturing.

Policy and Investment emphasizes financial incentives, subsidies, infrastructure support, and regulatory reforms under ISM 2.0 to attract both domestic and international investment.

Production seeks to strengthen mature-node semiconductor fabrication, outsourced semiconductor assembly and testing (OSAT), and compound semiconductor manufacturing. These areas require lower investment than leading-edge fabs while offering significant market opportunities.

People concentrates on developing a skilled workforce through initiatives such as a National Fab Academy, specialized university programs, and industry-led training.

Partnership encourages collaboration with global technology leaders and mineral-rich nations to secure access to critical raw materials and advanced technologies.

3. Key Amendments

The Vision 2035 blueprint adopts a phased implementation strategy, combining immediate actions with long-term structural reforms.

In the short term, the report recommends expanding nationwide access to EDA software and semiconductor prototyping facilities. Such resources are essential for startups, researchers, and students involved in chip design. It also advocates modernizing university curricula to align with industry requirements and introducing specialized semiconductor education programs.

Another key recommendation is the use of government procurement to create domestic demand. Strategic sectors such as defense electronics, smart metering systems, telecommunications infrastructure, and electric vehicles could be encouraged to source semiconductor solutions developed within India.

For the period between 2030 and 2035, the roadmap outlines several long-term priorities. These include securing international partnerships for critical minerals such as gallium, germanium, and rare earth elements, which are essential for semiconductor manufacturing. The strategy also calls for increased investment in silicon carbide (SiC) and gallium nitride (GaN) technologies, which are increasingly important for electric mobility, renewable energy systems, and high-performance electronics.

Additionally, the report proposes the development of advanced packaging and testing facilities capable of serving global markets, thereby strengthening India’s position within international semiconductor supply chains.

4. Impact

The successful implementation of this roadmap could significantly enhance India’s technological and economic capabilities. Speaking on the importance of semiconductors, Finance Minister Nirmala Sitharaman described them as the foundational infrastructure of the 21st century, enabling advancements in artificial intelligence, telecommunications, healthcare, defense systems, digital public infrastructure, and advanced manufacturing.

The strategy focuses on sectors where India already possesses strengths, particularly chip design and engineering talent. By expanding into advanced packaging, compound semiconductors, wide-bandgap materials, and AI-native chip design, India can build a competitive ecosystem without directly challenging global leaders in the most capital-intensive segments of semiconductor fabrication.

The roadmap also has the potential to generate high-skilled employment, attract foreign investment, strengthen supply-chain resilience, and reduce the country’s dependence on imports. Over time, these developments could support India’s ambition of becoming a major technology and manufacturing power.

5. Conclusion

India’s semiconductor roadmap represents a pragmatic and forward-looking strategy for achieving technological self-reliance. Rather than pursuing an expensive race to dominate leading-edge chip manufacturing, the country is focusing on areas where it can develop sustainable competitive advantages. Through targeted investments, policy support, workforce development, and international partnerships, India aims to establish itself as a critical player in the global semiconductor ecosystem. If implemented effectively, the Vision 2035 strategy could transform semiconductors into a major driver of economic growth, innovation, and national security in the coming decade.