Technology & Semiconductor Industry in India-2025

Summary: Technology & Semiconductor Industry in India

  • Strategic Importance:

    • Semiconductors are the backbone of modern technology, powering devices from smartphones to satellites.

    • Global market projected to reach $1 trillion by 2030, offering India a major growth opportunity.

  • India’s Current Position:

    • Holds 2% share in global semiconductor market; aims to reach 10% by 2030.

    • Approved 10 projects worth $18 billion, signaling strong investment momentum.

    • Chart highlights global leaders: Taiwan (60%), South Korea (20%), USA (10%), China (8%), India (2%).

  • Government Initiatives:

    • India Semiconductor Mission (ISM) to establish fabs and promote chip design.

    • Incentive schemes like PLI (Production Linked Incentive) and DLI (Design Linked Incentive).

    • Collaboration with global players such as Micron, Foxconn, AMD.

  • Recent Milestones:

    • Launch of Made-in-India Vikram 32-bit chip for space missions.

    • Micron’s $2.7B memory facility in Gujarat; multiple fabs under discussion.

  • Strengths Driving Growth:

    • Large domestic market for electronics and AI-driven applications.

    • Skilled engineering workforce and strong R&D ecosystem.

    • Strategic geopolitical positioning as an alternative to China and Taiwan.

  • Challenges:

    • High capital requirements for fabs (billions of dollars).

    • Dependence on imported raw materials and advanced tech nodes.

    • Infrastructure constraints like power and water supply.

  • Future Roadmap:

    • Move from design hub to full-scale manufacturing ecosystem.

    • Target: 10% global share and $100 billion domestic semiconductor sector by 2030.

  • Conclusion:

    • The Technology & Semiconductor Industry in India is poised for exponential growth with robust government policies, global partnerships, and innovation-driven strategies.

UPSC-level questions based on the topic:


Mains Questions (Descriptive)

1. The Technology & Semiconductor Industry in India is often called the backbone of digital sovereignty. Discuss the strategic importance of semiconductors for India’s economy, national security, and global competitiveness. (250 words)

2. Despite several policy interventions like the India Semiconductor Mission, India continues to face challenges in becoming a global semiconductor hub. Critically analyze these challenges and suggest measures to overcome them. (250 words)


Prelims Questions (Objective)

1. Consider the following statements regarding the Technology & Semiconductor Industry in India:

  1. The India Semiconductor Mission aims to promote chip design and establish fabrication units in the country.

  2. India currently holds more than 10% share in the global semiconductor market.

  3. The Production Linked Incentive (PLI) scheme is applicable to semiconductor and display manufacturing.

Which of the above statements are correct?
(a) 1 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (b) 1 and 3 only


2. Which of the following companies recently announced a $2.7 billion investment in India for semiconductor manufacturing?
(a) Intel
(b) Micron
(c) TSMC
(d) AMD

Answer: (b) Micron