India Unveils 10-Year Semiconductor Roadmap Targeting USD 150 Billion Value Chain by 2035

India Charts Decade-Long Path to USD 150 Billion Semiconductor Value Chain

NITI Aayog's Frontier Tech Hub has released 'Future of India's Semiconductor Industry,' the country's first comprehensive 10-year roadmap for the semiconductor sector. Unveiled in May 2026 by Finance Minister Nirmala Sitharaman and the Minister for Electronics and Information Technology, the document lays out an actionable vision to build a USD 120-150 billion semiconductor value chain by 2035, reducing India's dependence on imported chips while strengthening domestic capabilities across the full value chain.

The More-than-Moore Strategy

Rather than competing immediately in leading-edge chip manufacturing - a space already dominated by TSMC, Samsung, and Intel - the roadmap advocates a distinct 'More-than-Moore' strategy. India will focus on securing deep manufacturing dominance in mature logic nodes, advanced Outsourced Semiconductor Assembly and Test (OSAT) packaging, and specialized wide-bandgap compound materials such as gallium nitride (GaN) and silicon carbide (SiC). These technologies are critical for electric vehicles, renewable energy systems, telecommunications infrastructure, and defense applications.

Five Strategic Focus Areas

The roadmap is structured around five pillars: research and design, policy and investments, production capabilities, talent development, and international partnerships. It sets a goal of creating over 100 advanced semiconductor design intellectual property (IP) blocks domestically, leveraging India's existing strength as home to R&D centers for Intel, Qualcomm, Texas Instruments, Nvidia, AMD, and others. Nearly 20 percent of the world's chip design engineers are already Indian, providing a substantial talent pool for design-led innovation.

Investment Requirements and Timelines

Building a globally competitive ecosystem of fabs, design centres, and advanced packaging facilities will require USD 135-180 billion in investments over the next decade. India targets capturing 10-13% of the global semiconductor market and achieving 15-25% chip self-sufficiency by 2030. The roadmap aligns closely with priorities announced under India Semiconductor Mission (ISM) 2.0, the second phase of the government's flagship chip programme launched in Budget 2026-27 with an Rs 8,000 crore single-year allocation - the largest since the programme began.

Ecosystem Opportunities Beyond Manufacturing

While semiconductor manufacturing remains the headline opportunity, the roadmap's broader impact will extend across AI infrastructure, cloud computing, data centres, cybersecurity, industrial automation, and engineering services. As semiconductor manufacturing and packaging plants scale operations, technology vendors and channel partners are likely to see opportunities across factory automation, industrial connectivity, data management, and operational monitoring platforms. Chip design itself depends on high-performance computing infrastructure, simulation platforms, and AI-assisted development tools - creating second-order demand for cloud providers and engineering software vendors.

Talent and International Partnerships

Talent development forms a central pillar, with the roadmap calling for capability-building across the entire semiconductor talent pyramid - from researchers and design engineers to fab technicians and manufacturing specialists. The document highlights the importance of trusted international partnerships as countries seek resilient and secure semiconductor supply chains, with India positioning itself as a reliable alternative to China-centric supply networks. For technology vendors and channel partners, these collaborations could drive growth in engineering services, research infrastructure, design ecosystems, and manufacturing support technologies over the next decade.