Driving Sustainability in India's Semiconductor Manufacturing

As India takes major steps to establish itself as a global semiconductor manufacturing hub, aligning this growth with sustainable practices has become crucial.

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India is making significant strides in becoming a global hub for semiconductor manufacturing. As of 2023, India ranks 39th in global semiconductor readiness, reflecting its growing capabilities in this sector. The country has ambitious plans to expand its presence, aiming to capture at least 10% of the global semiconductor market by 2030. Semiconductor manufacturing, while essential for technological advancement, is resource-intensive, involving significant water and energy consumption, emissions, and waste. Addressing these environmental impacts is vital for India to maintain a competitive edge and achieve its ambitious sustainability goals.

India's Semiconductor Push and Environmental Challenges

Semiconductor manufacturing relies heavily on energy and water, with fabs consuming millions of metric tons of water and high levels of energy annually. As India aims to increase domestic semiconductor production, the environmental impact will rise unless sustainable practices are implemented. Recognizing these challenges, the Indian government has established the India Semiconductor Mission (ISM), with an allocation of ₹76,000 crore (over $10 billion USD) to support semiconductor manufacturing, display fabs, and compound semiconductors, among others.

This mission prioritizes creating high-tech clusters with infrastructure for energy and water conservation, aiming to balance economic growth with environmental stewardship.

Strategies for Sustainable Semiconductor Manufacturing in India