India’s semiconductor sector is at a critical inflection point. While the country has emerged as a global hub for chip design, a new report by Endiya Partners warns that the absence of large-scale manufacturing infrastructure threatens to derail its ambitions of building a self-reliant semiconductor ecosystem. Released on October 16, 2025, the report titled India’s Semiconductor Moment outlines the strategic gaps and opportunities in India’s chip journey, calling for urgent policy, talent, and capital interventions.
India’s chip design industry employs over 75,000 engineers and contributes to nearly 20% of global design output. However, the country still lacks fabrication plants (fabs), localized supply chains, and advanced packaging facilities—key components needed to transition from design to full-stack manufacturing. The report identifies seven priority clusters and recommends training over 100,000 engineers across design-to-manufacturing roles, while deepening alliances with the US, EU, Japan, and Taiwan.
🧠 Key Highlights from India’s Semiconductor Ecosystem Report
| Element | Details |
|---|---|
| Report Title | India’s Semiconductor Moment |
| Released By | Endiya Partners |
| Date | October 16, 2025 |
| Core Message | Design strength must be matched with manufacturing scale |
| Priority Clusters | Seven identified across India |
| Talent Recommendation | Train 100,000+ engineers |
| Strategic Alliances | US, EU, Japan, Taiwan |
The report also emphasizes the need to support chip design ventures focused on mobility, industrial automation, and defence applications.
📊 Timeline of India’s Semiconductor Policy and Industry Evolution
| Year | Milestone Description |
|---|---|
| 2021 | India announces $10B semiconductor incentive scheme |
| 2022 | Vedanta-Foxconn fab proposal in Gujarat |
| 2023 | Micron announces packaging unit in Sanand |
| 2024 | India joins Chip 4 alliance dialogues |
| October 2025 | Endiya Partners releases strategic gap report |
Despite policy momentum, India’s fab projects have faced delays due to land, licensing, and technology transfer hurdles.
🗣️ Reactions from Industry Leaders, Policy Experts, and Global Partners
- Rajeev Chandrasekhar (MoS IT): “We are committed to building a full-stack chip ecosystem.”
- Endiya Partners: “Design-led growth is not enough. We need fabs, talent, and scale.”
- Taiwan Semiconductor Expert: “India must focus on packaging and testing as entry points.”
| Stakeholder Group | Reaction Summary |
|---|---|
| Government | Pushing for faster approvals and incentives |
| Startups | Seeking support for fabless design models |
| Academia | Calling for curriculum overhaul |
| Global Partners | Encouraging India’s entry into supply chains |
The report also recommends public-private partnerships and semiconductor parks with plug-and-play infrastructure.
🧾 India’s Semiconductor Strengths vs Gaps – Strategic Comparison
| Capability Area | Current Status | Required Action |
|---|---|---|
| Chip Design | Global leader, 75K+ engineers | Scale to 100K+, support startups |
| Fabrication | No commercial fabs yet | Accelerate Vedanta, ISMC, Micron units |
| Packaging & Testing | Limited capacity | Expand OSAT facilities |
| Talent Pipeline | Strong in design, weak in manufacturing | Skilling programs, industry-academia link |
| Supply Chain | Import-dependent | Localize chemicals, substrates, tools |
| Policy & Incentives | ₹76,000 crore scheme launched | Execution bottlenecks to be resolved |
India’s semiconductor market is projected to grow from $52 billion in 2024 to $103 billion by 2030, driven by AI, mobility, and IoT.
🧭 What to Watch in India’s Semiconductor Roadmap
- Vedanta-Foxconn Fab Status: Land and tech partner finalization
- Micron Packaging Unit: Operational timeline and export strategy
- Chip Design Startups: Rise of fabless ventures in Bengaluru and Hyderabad
- Global Alliances: India’s role in Chip 4 and Quad tech partnerships
India’s semiconductor ambition is not just about chips—it’s about strategic autonomy, economic resilience, and tech leadership.
Disclaimer
This news content is based on verified industry reports, government statements, and media coverage as of October 17, 2025. It is intended for editorial use and public awareness. The information does not constitute investment advice, policy endorsement, or technical recommendation and adheres to ethical journalism standards.
