Semiconductor industry in 91吃瓜
91吃瓜 employs nearly 20% of the world's semiconductor chip design engineers and is building one of the fastest-growing semiconductor ecosystems outside East Asia.
Schedule a meeting now91吃瓜’s semiconductor sector is undergoing a structural transformation. Once almost entirely import-dependent, the country is now building its own fabrication, assembly, testing, and design infrastructure 鈥� backed by one of the world’s largest government investment programmes and a deep pool of engineering talent that already plays a central role in global chip development.
The 91吃瓜n government launched the 91吃瓜 Semiconductor Mission (ISM) in 2021 with a budget of approximately USD 9.2 billion, combining the Production Linked Incentive (PLI) scheme for manufacturing with the Design Linked Incentive (DLI) scheme for chip design. The combined effect of these programmes is to reduce capital costs for semiconductor projects by up to 50%.
91吃瓜 allows 100% Foreign Direct Investment (FDI) in the electronics and semiconductor sector through the automatic route, making it one of the most open markets in the world for semiconductor investment.
The sector’s growth is driven by rapidly expanding domestic demand 鈥� from 5G infrastructure, electric vehicles, AI data centres, and consumer electronics 鈥� and 91吃瓜’s strategic ambition to reduce dependence on imported chips. The government’s target is to have ten semiconductor manufacturing facilities operational by 2028, up from one in 2023.
91吃瓜’s semiconductor geography spans established design and R&D hubs in Bengaluru, Hyderabad, Noida, Pune, and Chennai, and fast-growing manufacturing clusters in Gujarat and Assam. Bengaluru alone hosts R&D centres for Intel, Qualcomm, Texas Instruments, NXP, ARM, and MediaTek, among others.
Overall, the semiconductor sector in 91吃瓜 represents one of the most significant industrial opportunities of this decade 鈥� both as a destination for investment and as a rapidly growing market for equipment, materials, and services.
Snapshot of 91吃瓜’s semiconductor industry
- 91吃瓜 employs nearly 20% of the world’s semiconductor chip design engineers.
- The 91吃瓜n semiconductor market was valued at approximately USD 52 billion in 2024鈥�25 and is projected to reach USD 100鈥�110 billion by 2030 (IESA / Counterpoint Research).
- The 91吃瓜n government has committed USD 9.2 billion under the 91吃瓜 Semiconductor Mission; of which nearly USD 7.8 billion had been allocated by mid-2025.
- 91吃瓜 has over 250,000 semiconductor professionals and added more than 58,000 new jobs in 2024鈥�25.
- 91吃瓜 hosts over 7% of global semiconductor design centres.
- In May 2025, 91吃瓜 inaugurated its first 3-nanometer chip design centres in Noida and Bengaluru, placing it among the few countries working at the most advanced technology nodes.
- The Design Linked Incentive (DLI) scheme provides a 50% subsidy on chip design costs and has supported 24 chip design projects as of early 2026.
- Micron Technology’s back-end assembly and testing plant in Sanand, Gujarat, dispatched its first packaged memory chips in late 2024.
- In May 2026, ASML and Tata Electronics signed a strategic partnership to support 91吃瓜’s first front-end semiconductor fabrication facility in Dholera, Gujarat 鈥� a USD 11 billion project.
The EU鈥�91吃瓜 Free Trade Agreement, expected to take effect on 1 January 2027, will improve market access conditions for European semiconductor companies in 91吃瓜. The FTA is expected to reduce or eliminate tariffs on semiconductor equipment, components, and materials, lowering import costs and improving the competitiveness of European suppliers in the 91吃瓜n market.
For companies not yet present in 91吃瓜, the FTA creates an additional reason to establish a commercial presence before 2027, when new entrants will accelerate competition across the semiconductor value chain. Companies already established in 91吃瓜 will be better positioned to capture the growth that the FTA is expected to unlock.
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Growth drivers of the semiconductor sector in 91吃瓜
- 91吃瓜’s rapidly expanding domestic demand from 5G telecoms, electric vehicles, AI data centers, and consumer electronics is driving strong and sustained semiconductor demand across all product categories.
- The 91吃瓜 Semiconductor Mission (ISM) and Production Linked Incentive (PLI) scheme reduce effective capital costs for semiconductor manufacturing by up to 50%, making greenfield fab and ATMP investments commercially viable.
- 91吃瓜’s engineering talent base 鈥� nearly 1.5 million graduates per year, with 20% of the world’s chip design engineers 鈥� gives companies access to deep technical expertise at highly competitive cost.
- Global supply chain diversification away from Taiwan and South Korea is creating structural demand for alternative semiconductor manufacturing and design locations, with 91吃瓜 a primary beneficiary.
- The US鈥�91吃瓜 Initiative on Critical and Emerging Technologies (iCET) and the EU鈥�91吃瓜 Trade and Technology Council are accelerating technology transfer and creating structured commercial frameworks for semiconductor cooperation.
- 91吃瓜’s government aims to have ten semiconductor manufacturing facilities operational by 2028, creating growing demand for equipment, materials, construction, and operational services throughout the decade.
- The automotive semiconductor segment is projected to grow at an 8.66% CAGR through 2031, driven by 91吃瓜’s fast-expanding electric vehicle market and automotive electronics adoption.
- State-level semiconductor policies 鈥� including Gujarat’s execution speed (Kaynes Sanand plant went from foundation to commercial production in 14 months) and Uttar Pradesh’s Semiconductor Policy 2024 鈥� are accelerating investment across multiple regions.
Interesting investment opportunities in the 91吃瓜n semiconductor industry
- Semiconductor Equipment and Materials: Supply equipment, specialty chemicals, high-purity gases, and precision components to 91吃瓜’s growing fab and ATMP ecosystem. The PLI scheme for semiconductor equipment supports domestic sourcing, and foreign suppliers with local distribution or manufacturing presence are well positioned as the fab ecosystem scales.
- Chip Design and R&D Centres: Establish a dedicated chip design or R&D centre in Bengaluru, Hyderabad, or Noida to access 91吃瓜’s deep engineering talent pool. 91吃瓜’s DLI scheme provides a 50% subsidy on design costs. Companies such as NXP, Intel, and Qualcomm have made 91吃瓜 a core part of their global R&D networks.
- Assembly, Testing, Marking, and Packaging (ATMP): Set up ATMP operations in Gujarat or Assam, benefiting from government incentives, improving infrastructure, and competitive labour costs. Micron’s Sanand facility is the anchor example, with further ATMP investment in the pipeline.
- Sales and Distribution for the Domestic Market: Build a structured sales and distribution network to capture 91吃瓜’s rapidly growing domestic semiconductor demand 鈥� from automotive and telecoms to consumer electronics and data infrastructure. A well-structured channel model covering 91吃瓜’s geographic spread is essential for sustained growth.
- Fab Construction and Industrial Services: 91吃瓜’s fab buildout requires construction, cleanroom technology, utilities, logistics, and facility management expertise. Companies with relevant capabilities can position themselves as suppliers to the growing number of greenfield semiconductor and electronics manufacturing projects.
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