India Charts $150 Billion Semiconductor Roadmap to 2035

NITI Aayog Sets a $150 Billion Target for 2035

India's public policy think tank, NITI Aayog, has published 'Future of India's Semiconductor Industry', a 65-page report that lays out a roadmap for building a $120 billion to $150 billion semiconductor value chain in the country by 2035. The report frames semiconductors as central to India's economic growth and strategic autonomy, and it arrives at a moment when the India Semiconductor Mission (ISM) has already moved from a fab-centric incentive scheme into a broader industrial framework under ISM 2.0.

Where India Plans to Compete

Rather than chasing leading-edge logic nodes, the roadmap focuses on segments where India can build durable advantages: mature-node logic, specialty analog and mixed-signal chips, and wide-bandgap compound semiconductors such as silicon carbide (SiC) and gallium nitride (GaN). These categories serve fast-growing end markets in power electronics, automotive, industrial systems and telecom infrastructure, areas where India already has design talent and a growing manufacturing base.

Design Leadership and System Architecture

The report argues that India's deepest advantage lies in chip design talent and system architecture skills, built over decades of serving global semiconductor companies. NITI Aayog wants to convert that outsourced design expertise into homegrown intellectual property, encouraging Indian companies to own products and architectures rather than simply executing specifications for overseas clients.

OSAT, Packaging and Materials

On the manufacturing side, the ambition is for India to become a top-three global destination for outsourced semiconductor assembly and test (OSAT) and advanced packaging. The report also calls for India to emerge as a trusted supplier of critical semiconductor materials, particularly wide-bandgap and advanced packaging materials, reducing reliance on a small number of overseas suppliers.

An Ecosystem-Wide Push

The NITI Aayog roadmap follows a string of recent announcements spanning fabs, OSAT facilities, materials suppliers and design startups, suggesting the strategy is being implemented across the value chain rather than through a single flagship project. Industry watchers note that India's approach increasingly blends government incentives, private investment and global partnerships, with companies in design, equipment, materials and packaging all factoring into the plan.

Setting Standards, Not Just Participating

Perhaps the most striking ambition in the report is its language around influence: NITI Aayog states that India should aim to 'set standards, shape supply chains and create enduring global dependence, rather than limit itself to mere participation.' That framing marks a shift from India's earlier positioning as a cost-effective engineering hub toward a vision of India as a rule-setter in specific segments of the global semiconductor supply chain.

What Comes Next

For the 2035 target to materialize, the report's roadmap will need to translate into sustained capital deployment, faster fab and OSAT commissioning, and a steady pipeline of design talent moving into product companies rather than only services roles. With ISM 2.0 already broadening its scope to equipment, materials and indigenous IP, the coming years are expected to bring further policy detail on incentives, funding mechanisms and timelines aimed at turning India's semiconductor ambitions into a measurable global market share.