CHIPS AND GLORY

From a wafer-thin start to trillion-dollar targets - India's semiconductor play is heating up

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India’s semiconductor industry is at a pivotal point in its growth cycle. Recently, it made headlines with the government's approval of a new semiconductor manufacturing facility in Uttar Pradesh - a joint venture between HCL and Taiwanese electronics giant Foxconn. The unit will be located near the upcoming Jewar Airport and will produce display driver chips, critical components used in mobile phones, laptops, cars, and other digital displays.

The facility involves an investment of ₹3,700 crore and will have the capacity to process 20,000 wafers per month, churning out approximately 36 million units monthly. “With this sixth unit, Bharat moves forward in its journey to develop the strategically vital semiconductor industry,” the government said in a press release. Clearly, India is taking serious steps toward becoming a key player in the global semiconductor ecosystem.

GLOBAL LANDSCAPE AND INDIA’S OPPORTUNITY

The global semiconductor industry is currently valued at over $600 billion and is projected to exceed $1 trillion by 2030. Taiwan, South Korea, the US, and China are the dominant players in chip production. However, rising geopolitical tensions, particularly between the US and China, have raised concerns about the resilience of the global supply chain - creating a massive opening for countries like India to step in by diversifying and localizing chip production and other products produced in the semiconductor industry.

India is increasingly viewed as a promising destination for semiconductor-related investments. According to media reports, India’s semiconductor market was valued at $45 billion in 2023 and is expected to grow to over $100 billion by 2030. This growth will be driven by demand from sectors such as smartphones, electric vehicles, laptops, medical devices, and the defence sector.

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