What's Happening?
India is making significant strides in its technological self-determination, particularly in the semiconductor industry. In 2025, the country approved five new semiconductor units, increasing the total to ten across six states with investments totaling
approximately ₹1.60 lakh crore. This expansion is part of a broader strategy to capture 10% of the global semiconductor market by 2030. The Indian government has also launched the National Critical Mineral Mission to secure essential minerals for semiconductor production, with a budget of ₹16,300 crore. This initiative aims to reduce reliance on imports and strengthen India's position in the global semiconductor supply chain.
Why It's Important?
The expansion of India's semiconductor industry is crucial for its economic resilience and strategic autonomy. By developing domestic semiconductor manufacturing capabilities, India aims to reduce its dependence on foreign imports, which is vital as global supply chains become more fragmented. This move not only positions India as a key player in the global semiconductor market but also supports its broader technological ambitions, including advancements in artificial intelligence and electronics. The initiative is expected to boost local industries, create jobs, and enhance India's competitiveness in the global tech landscape.
What's Next?
India's focus on semiconductor self-reliance is likely to continue with further investments and policy support. The government may introduce additional incentives to attract foreign and domestic investments in semiconductor manufacturing. As India aims to capture a significant share of the global market, it will need to address challenges such as infrastructure development, skilled workforce availability, and technological innovation. The success of this initiative could lead to increased collaboration with international tech companies and further integration into global supply chains.
Beyond the Headlines
India's push for semiconductor self-reliance also highlights the geopolitical implications of technology supply chains. As countries seek to secure critical technologies, India's strategy could serve as a model for other nations looking to balance economic growth with strategic autonomy. Additionally, the focus on critical minerals and recycling initiatives reflects a growing awareness of environmental sustainability and resource management in the tech industry.
