Why Global Chipmakers are Betting Big on India’s Semiconductor Future

India’s semiconductor ambitions are drawing unprecedented global attention. From Tokyo to Silicon Valley, leading chipmakers and technology firms are expanding their footprint in the country, attracted by its vast talent pool, rising domestic demand, and government‑backed incentives. This interest underscores a pivotal shift, India is no longer just a supplier of engineering talent, but has the potential to become a strategic partner in building the global semiconductor value chain.

Recently, Union Minister of Commerce and Industry, Piyush Goyal, concluded his official visit to Japan, following a series of high-level engagements in Tokyo, Nagoya and Osaka aimed at accelerating Japanese investment in India. The visit highlighted India’s six-pillar semiconductor strategy; inviting Japanese technology and investment.

Goyal expressed that Japanese companies are interested in expanding presence in India’s Semiconductor and Advanced Technology Ecosystem. He emphasized India’s ambition to build a globally competitive semiconductor ecosystem, with semiconductor demand projected to reach USD 150 billion by 2032. He outlined the government’s six-pillar strategy covering chip design, semiconductor machinery and materials, fabrication, ATMP/OSAT, research and development, and talent development.

Renesas Electronics, a Japanese company has already deepened its India strategy through a partnership with CG Semi, aimed at building outsourced semiconductor assembly and test (OSAT) capacity in Gujarat. The collaboration marks a critical step in aligning India’s semiconductor ecosystem with global supply chain needs.

The pilot OSAT facility in Sanand, inaugurated last August, is already advancing toward commercial production. In parallel, construction of the main unit designed to support higher capacity and a wider range of packaging technologies, is progressing steadily. Together, Renesas and CG Semi are laying the groundwork for India’s entry into advanced semiconductor manufacturing.

Malini Narayanamoorthi, president of Renesas India, underscored the partnership’s significance, “Our R&D teams are deeply engaged in automotive and industrial innovation. With CG Semi, we are complementing design strength with manufacturing, ensuring India contributes to products for both domestic and global markets.”

This is not an isolated development. Many global semiconductor companies are investing in India. 

Lam Research, an American supplier of wafer-fabrication equipment and related services to the semiconductor industry, is positioning itself at the intersection of workforce skilling and ecosystem building to ensure India plays a pivotal role in the semiconductor value chain worldwide.

“At Lam Research India, the advanced technologies we develop are not just for India, they are solutions with worldwide relevance, built through teamwork and applied across markets. Our vision here is to be a globally equivalent R&D center,” said Lam Research India managing director (MD) Rangesh Raghavan.

From innovation in technology, core engineering work, full stack software development to AI applications and supply chain development, Lam Research in India is now an organization full of scope with two primary operational R&D and engineering labs in India.

Similarly, Marvell Technology, is a US company, headquartered in Santa Clara, California, which develops and produces semiconductors and related technology. The company has announced plans to invest USD 250 million in India over the next three years to expand its technology capabilities, engineering talent and infrastructure. The announcement coincides with the company’s 20th anniversary of operations in India and reflects its continued focus on strengthening research and development (R&D) and supporting the country’s semiconductor ecosystem. 

The company is also expanding its engineering footprint by inaugurating a new wing at its Bengaluru office while increasing capacity at its Hyderabad facility to support design and development of semiconductor solutions for AI applications. Marvell established its India operations in Bengaluru in 2006. The tech giant designs chips for data infrastructure, powering AI, cloud, data centres, enterprise networking, and automotive sectors.

Navin Bishnoi, head of Marvell Technology India said that the country’s role in the global chip supply chain must be that of an equal partner. He emphasized that a complete supply chain should extend beyond fabs to include inputs such as minerals, gases, equipment, and instruments, ensuring manufacturing plants are integrated into the global ecosystem.

“India should accelerate design and product development to keep fabs running and build a value chain rooted in intellectual property, not just wafer output. A skilled workforce for both manufacturing and design will enable India to contribute across the spectrum from fabs to electronics integration,” Bishnoi said. He added that manufacturing is only the foundation. True progress lies in coupling supply chain depth with product innovation and talent pipelines.

Furthermore, HCL Group and Foxconn have appointed Taiwan-based CTCI Corporation as the engineering, procurement, and construction (EPC) partner for their INR 37.06 billion (US$389.9 million) semiconductor assembly and testing (OSAT) facility in Jewar, Uttar Pradesh.

India is steadily emerging as a global semiconductor hub. Large scale investments, expanding manufacturing capacity, and platforms such as SEMICON India reflect growing global confidence in India’s semiconductor journey. The domestic chip market is witnessing rapid growth. As per industry estimates, the size of the Indian semiconductor market was about $38 billion in 2023, $45-$50 billion in 2024-2025 and is expected to reach $100-$110 billion by 2030. 

The foundation of this growth was laid with the approval of India Semiconductor Mission 1.0 by the Union Cabinet in December 2021. The Mission is supported by an incentive framework of INR 76,000 crore, offering fiscal support of up to 50 per cent for silicon fabs, compound semiconductor facilities, assembly and testing units, and chip design. 

By 2029, India is expected to achieve the capability to design and manufacture chips required for nearly 70–75 per cent of domestic applications. Advancing on this foundation, the next phase under Semicon 2.0 will focus on advanced manufacturing, with a clearly defined roadmap to achieve 3-nanometre and 2-nanometre technology nodes. By 2035, India aims to be among the top semiconductor nations globally.

From OSAT facilities in Gujarat to globally equivalent R&D centers in Bengaluru and Hyderabad, these moves signal India’s transition from a design‑centric hub to a full‑spectrum semiconductor powerhouse. The convergence of global capital, advanced technology, and domestic talent pipelines is positioning India not just as a participant, but as an equal partner.