New Delhi

Indiaplans to invest $13 billion in the second phase of its semiconductor mission, as it seeks to build a domestic chip ecosystem covering design, manufacturing, assembly and testing. The aim is to reduce the country’s heavy dependence on imported chips while the surging domestic demand is expected to touch $200 billion by 2035, according to a new report.

The report highlights that the government has already approved 12 semiconductor projects across six states, with Micron, Kaynes Semicon and CG Semi beginning commercial production this year, mainly in assembly, testing and packaging rather than advanced wafer fabrication.

A Tata Electronics–Taiwanese Powerchip partnership in Dholera, Gujarat, is targeting its first chip output in December, while Tata has also signed an $11 billion memorandum of understanding with ASML for advanced chipmaking serving industries including automobiles and artificial intelligence.

India’s strongest advantage is its established position in semiconductor research and design. The country has a very large pool of chip-design engineers, but faces a shortage of fab-floor operators and process engineers needed to manage wafer production and convert raw silicon into functioning chips, the article states.

It underscores that the talent base is increasingly becoming a central part of the government’s strategy. Union Minister Ashwini Vaishnaw said India aims to develop 100,000 semiconductor engineers, while 85,000 have already been trained in four years, compared with an original 10-year target.

Semiconductor design programmes are now available at 355 universities, including institutions in smaller cities and towns. At the same time, the global industry is projected to face a shortage of about 1 million workers by 2032, potentially giving India a significant workforce advantage, the article points out.

According to a NITI Aayog report, India currently imports 90–95 per cent of its semiconductors, while domestic demand is projected to exceed $200 billion by 2035. Reducing that dependence is, therefore, a strategic priority.

To attract investment, the Central government is offering subsidies of up to 50 per cent of semiconductor manufacturing project costs, with additional support available from state governments.

For India, the larger ambition is, therefore, moving beyond “Make in India” to “Engineer in India” -- using its engineering workforce as the foundation for a complete semiconductor ecosystem.