India will become the world’s semiconductor hub by 2035, NITI Aayog presents $150 billion masterplan

Knews Desk- NITI Aayog has prepared a big roadmap to make India a global power in the field of semiconductor manufacturing. In the report titled ‘Future of India’s Semiconductor Industry’, the target has been set that by the year 2035, India should create a strong semiconductor value chain of $ 120 to 150 billion and play an important role in the world supply chain.

According to the report, the demand for semiconductors in India is going to increase rapidly in the coming years and by 2035 this market may reach around $200 billion. At present, 90 to 95 percent of the country’s chip requirements are met through imports, which puts huge pressure on the foreign exchange and also poses a risk of supply chain disruption. For this reason, emphasis has been laid on increasing domestic production.

The report said that India will have to adopt its own strategy instead of simply copying global competition. Under this, it has been recommended to pay special attention to chip design, fabrication, advanced packaging, compound semiconductors and research infrastructure. Also, a target has been set to include India among the major centers of the world in the field of OSAT (Outsourced Semiconductor Assembly and Test) and Advanced Packaging.

To make this ambitious plan successful, an investment of 135 to 180 billion dollars is required in the next ten years. NITI Aayog suggests that the central government should provide at least one-third of the total investment, so that the confidence of private investors increases and the risk of big projects can be reduced.

The report also said that technological self-reliance is the foundation of a developed India. The role of semiconductors is continuously increasing in important sectors like Artificial Intelligence, Defence, Telecommunication, Automobile, Healthcare and Digital Services. In such a situation, developing domestic chip manufacturing capacity is not only an economic necessity, but also very important for national security and technological sovereignty.