India targets five per cent share in the global semiconductor market under Semicon 2.0

The government of India is aiming to capture five per cent of the global semiconductor manufacturing market by 2030 as it gears up for the next phase of its semiconductor initiative, Semicon 2.0. It has already committed disbursements from the $10 billion it earlier announced as incentives for prospective semiconductor fab players, as well as outsourced semiconductor assembly and test (OSAT) and assembly, testing, marking and packaging (ATMP) companies. So far, five projects have been deemed eligible under the scheme.

According to the India Electronics & Semiconductor Association (IESA), to achieve this target, the Ministry of Electronics and Information Technology (MeitY) has cleared projects with a cumulative capacity to produce over 75 million chips per day. Including state-cleared projects, this total rises to 91 million chips per day.

State-backed projects include Suchi Semicon in Gujarat, RRP Electronics in Maharashtra, and RIR Power Electronics in Odisha, which are together expected to produce 10 million chips per day, once it gets operational. Further, Chennai-based Polymatech Electronics is already active, with a current capacity of 6 million chips daily and a new plant is also under development in Chhattisgarh.

Additionally, Micron is expected to roll out its first ‘Make in India’ chips by the end of 2025, with the industry estimating its daily output to be around 4.8 million chips.

Further, under Semicon 2.0, the government will also prioritise building a robust semiconductor ecosystem, including supply chains for specialised chemicals, gases, and other essential materials, critical to sustaining and scaling domestic chip manufacturing.

India, naturally, faces competition. Malaysia currently accounts for around 14 per cent of the global OSAT market, while Taiwan holds over 40 per cent. Furthermore, last year, Ashwini Vaishnaw, Union Minister for Electronics and Information Technology, Information and Broadcasting, and Railways, had said that the goal is to secure 25 per cent of the global ATMP/OSAT market within the next decade.