India Sets 75 Percent Semiconductor Self-Sufficiency Target for 2030 Under ISM

ISM 2.0 Sets Bold 75 Percent Domestic Semiconductor Self-Sufficiency Target by 2030

India's Semiconductor Mission 2.0 has embedded a quantified self-sufficiency target at the core of its policy framework: 75 percent of India's total semiconductor demand to be served by domestically designed or manufactured components by 2030. The target, disclosed as part of the ISM 2.0 gazette notification on August 31, 2026, represents a dramatic ambition relative to India's current near-zero domestic semiconductor production base, and it establishes the benchmark against which all ISM 2.0 programme investments and outcomes will ultimately be measured.

What 75 Percent Self-Sufficiency Means

India currently imports virtually all of its semiconductor consumption, which is valued at approximately USD 24 billion annually and growing at over 15 percent per year driven by smartphone, automotive, data centre, and industrial electronics demand. Achieving 75 percent domestic self-sufficiency by 2030 would require India to produce or design chips covering approximately USD 30 billion of what is projected to be a USD 40 billion annual semiconductor consumption market by that year. This encompasses not just wafer-fabricated chips from the Dholera fab and future facilities, but also chips manufactured abroad based on Indian-owned design IP, chips packaged and tested in Indian OSAT facilities, and semiconductor components produced at compound semiconductor facilities targeting power electronics, RF, and optoelectronics applications.

How ISM 2.0 Delivers Against the Target

The six pillars of ISM 2.0 are each calibrated to contribute toward the 75 percent target through different mechanisms. The fabrication pillar contributes through domestic wafer production, initially at 28nm and mature nodes. The ATMP and OSAT pillar, where India is already furthest ahead with Micron, CG Power, and Kaynes in commercial operation, adds packaged chip volume. The chip design pillar, through DLI companies and Semicon 2.0 startup support, adds domestically owned IP that qualifies as self-sufficient even when manufactured at foreign foundries. The equipment and materials pillar reduces the import content of domestic fab operations, indirectly improving the self-sufficiency calculation across the entire supply chain. Together, these pillars are designed to compound toward the 75 percent figure by 2030, with annual ISM tracking reports to be published against defined milestones.

Challenges and Risk Factors

Industry analysts broadly welcome the 75 percent target as a clear and ambitious policy signal while noting that several execution risks could affect delivery. The most significant is the timeline dependency on Dholera first silicon in December 2026, since any delay in the fab ramp would directly impact the self-sufficiency calculation. The talent pipeline is the second major risk, as operating advanced OSAT and fab facilities at commercial scale requires trained workforce numbers that India's current engineering education system is not yet producing at the required volume. The materials and equipment supply chain is a third risk, as India's near-zero baseline in these areas makes the ambitious domestic capability targets in these segments particularly challenging to achieve within the 2030 horizon.

Strategic and Economic Significance

The 75 percent self-sufficiency target reflects India's strategic assessment that semiconductor dependency is a national security and economic competitiveness risk that must be actively managed rather than accepted as an inevitable feature of global trade. For a country with India's scale of domestic semiconductor consumption and engineering talent base, the aspiration to achieve meaningful self-sufficiency within a decade is less radical than it might appear, particularly given that the global semiconductor supply chain is itself undergoing restructuring that is actively creating space for new manufacturing and design nodes. India's target, if credibly pursued, positions the country to capture a significant share of the supply chain diversification investment that global chip companies and governments are collectively mobilising.