Introduction
India is preparing for a once-in-a-generation transformation: India’s Semiconductor Rise of its semiconductor industry. With government incentives worth billions of dollars, new fabs under construction, and global tech giants investing heavily, the country is reducing its dependence on chip imports.
Semiconductors—tiny but powerful devices—are the foundation of modern technology. They power cars, smartphones, satellites, renewable energy systems, and medical devices.
As India develops its semiconductor ecosystem, a wave of industries will benefit directly, creating jobs, reducing imports, and boosting exports.
5-Point Overview Of India’s Semiconductor Rise
Automotive & EV Growth: Chips for sensors, inverters, and battery systems will make India’s $110 billion EV market more secure and cost-effective.
Telecom & 5G Expansion: With $30+ billion invested in 5G rollout, local chip supply will power next-gen connectivity and edge computing.
Consumer Electronics Boom: Local fabs will reduce $65 billion in imports, enabling India to become a global hub for smartphones, laptops, and smart TVs.
Defense & Healthcare Independence: Indigenous chips will strengthen strategic security and enable affordable healthcare devices.
Green Energy & AI Future: Power semiconductors, embedded systems, and AI accelerators will support renewable energy, robotics, and cybersecurity.
techovedas.com/why-renesas-backs-out-of-the-sic-power-chip-race-amid-ev-market-slowdown
1. Automotive & Electric Vehicles (EVs)
The automotive sector is one of the largest consumers of semiconductors.
- Modern cars require 1,000–1,500 chips.
- Electric vehicles need even more, powering battery management, ADAS sensors, infotainment, and inverters.
- India’s EV market is expected to reach $110 billion by 2030.
Domestic chip production will reduce dependency on global suppliers, cut costs, and prevent supply disruptions.
Example: Tata Motors, Ola Electric, and BYD India are scaling EV operations. With local chips, their production costs will drop, accelerating adoption.
techovedas.com/how-will-texas-instruments-layoffs-in-china-impact-local-and-global-chipmakers/
2. Telecommunications & 5G Infrastructure
The telecom sector is undergoing rapid transformation.
- India has committed $30+ billion for 5G infrastructure.
- 5G networks rely on semiconductors for base stations, routers, modems, and fiber optic systems.
- Future 6G deployments will increase chip demand even further.
A local fab ecosystem will strengthen India’s telecom supply chain.
Example: Reliance Jio and Airtel can reduce their reliance on imported networking gear if chips are produced domestically.
Follow us on Linkedin for everything around Semiconductors & AI
3. Consumer Electronics
Consumer electronics is the backbone of India’s semiconductor opportunity.
- India imports $65+ billion worth of electronics annually.
- Smartphones, laptops, smart TVs, and wearables all depend on semiconductors.
- Local fabs will not only reduce imports but also open up export opportunities.
Example: Apple, Samsung, and Xiaomi already assemble devices in India. A domestic chip supply could encourage them to expand production and even export from India.
techovedas.com/why-investing-in-display-fab-could-be-a-game-changer-for-india
4. IoT, Smart Devices & Smart Cities
The Internet of Things (IoT) is expanding rapidly in homes, factories, and urban infrastructure.
- By 2030, India will have 2 billion IoT devices.
- Smart homes, connected factories, and city infrastructure require chips for sensors, controllers, and communication modules.
- Local production will accelerate smart city adoption.
Example: L&T Smart World and Tata Power are rolling out smart meters and smart grids, which will benefit directly from local semiconductor supply.
techovedas.com/how-indias-100-gw-solar-push-could-transform-semiconductors-5-things-you-must-know/
5. Defense, Aerospace & Security
For a country like India, strategic independence in semiconductors is non-negotiable.
- Chips are vital for radars, avionics, communication systems, and satellites.
- Import dependence creates national security risks.
- Indigenous chips ensure self-reliance and supply chain resilience.
Example: ISRO and DRDO rely on imported semiconductors for satellite missions and defense systems. Local fabs will reduce vulnerability.
6. Healthcare & Medical Devices
Healthcare technology is increasingly digital.
- India’s medical device market is expected to touch $50 billion by 2030.
- Chips power everything from MRI scanners, CT machines, and ventilators to wearable health trackers.
- Local chip production can bring down costs and enable affordable devices.
Example: Wipro GE Healthcare and Siemens India can expand domestic production of diagnostic devices when local semiconductor supply is available.
7. Research, Design & IP Development
India is already a chip design powerhouse.
- Around 20% of the world’s chip design engineers are Indian.
- As fabs open, opportunities for EDA tools, IP cores, and custom chip design will expand.
- This will create high-value engineering jobs and boost India’s position as a design-to-silicon hub.
Example: Qualcomm, Intel, and NVIDIA operate R&D centers in Bangalore and Hyderabad. Domestic fabs will allow them to move from design to fabrication locally.
8. Equipment, Materials & Chemicals
Chips cannot be manufactured without highly specialized equipment and materials.
- Semiconductor fabs require ultrapure gases, photoresists, specialty chemicals, and advanced machinery.
- The global semiconductor materials market exceeds $60 billion.
- India can capture a share by localizing consumables and manufacturing.
Example: Reliance Chemicals and Tata Advanced Materials are investing in advanced chemicals that can be used in semiconductor fabs.
9. Power & Renewable Energy Systems
Semiconductors will also drive India’s renewable energy future.
- Solar inverters, wind turbines, and smart grids need high-efficiency chips.
- Wide-bandgap devices like SiC (Silicon Carbide) and GaN (Gallium Nitride) improve power conversion efficiency.
- India has set a target of 500 GW renewable capacity by 2030.
Example: Adani Green and ReNew Power will benefit from cheaper, locally made chips for solar farms and smart grids.
10. Software, Embedded Systems & AI
Semiconductors and software are inseparable.
- India’s $250+ billion IT services industry will integrate more closely with hardware.
- Demand for embedded firmware, real-time OS, and AI accelerators will rise.
- Robotics, cybersecurity, and edge AI will expand.
Example: Infosys, TCS, and Wipro are already working on embedded solutions for global clients. Local chip manufacturing will give them an edge in co-developing hardware-software systems.
Conclusion
India’s semiconductor rise journey is about more than chips—it is about building a technology foundation for the future.
From powering EVs and 5G networks to strengthening defense and healthcare, semiconductors will touch nearly every sector of India’s economy. As global supply chains shift beyond China, India has a chance to become both a manufacturing hub and a design powerhouse.
For entrepreneurs, investors, and policymakers, semiconductors represent the bedrock of India’s next trillion-dollar economy.
For more of such news and views choose Techovedas! Your semiconductor Guide and Mate!
