INDIA POISED TO BECOME A GLOBAL MANUFACTURING HUB FOR SEMICONDUCTORS

India's semiconductor manufacturing sector is expected to see a substantial growth in the coming years in view of a robust increase in domestic demand. This surge is prompting increased investments from both Indian conglomerates and international companies. Companies like

, , , , , and TATA ELECTRONICS are making significant strides in development of semiconductors in India. These initiatives include wafer fabrication units, assembly and testing facilities, and advanced packaging centers. As of Jun25, at least six semiconductor fabrication projects are already in progress across the country. A key factor driving the momentum is strong government support in the sector. The government has introduced several incentive programs like the Production Linked Incentive (PLI) and Design Linked Incentive (DLI) schemes. These schemes provide financial support and covers upto 50% of a projecct's capital expenditure, as well as state-level assistance. These initiatives aim to create a reliable, self-sustaining supply and design ecosystem capable of global competitiveness. India's semiconductor industry is expected to grow at a compound annual growth rate of about 15% till the year 2030, more than double the global average. This sector is also forecast to generate upto one million direct and indirect jobs by 2026. However, challenges like limited availability of critical raw minerals still needs to be addressed.