Business News | Developing Local Supply Chain Crucial for India to Meet 25% Global Semiconductor Demand by 2032: JM Financials
Get latest articles and stories on Business at LatestLY. India’s target of meeting around 25 per cent of global semiconductor demand by 2032 will require more fabrication and advanced packaging units, along with a strong domestic supply chain and a wider manufacturing ecosystem, according to a report by JM Financials.
New Delhi [India], September 23 (ANI): India’s target of meeting around 25 per cent of global semiconductor demand by 2032 will require more fabrication and advanced packaging units, along with a strong domestic supply chain and a wider manufacturing ecosystem, according to a report by JM Financials.
The report said that projects approved under the India Semiconductor Mission (ISM) 1.0 alone would require capital equipment worth USD 12-13 billion, besides a large pool of technical talent and maintenance facilities to support long-term operations.
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"The global semiconductor market is expected to scale up from USD 775 billion in 2024 to USD 1.6 trillion by 2030. Simultaneously, the Indian semiconductor market is projected to touch USD 110-120 billion by 2030, necessitating the presence of several more fabrication and packaging units," the report said.
The report highlighted the need to develop a reliable local supplier base to support India’s semiconductor manufacturing ambitions.
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It noted that Tata’s fabrication facility in Dholera depends on more than 400 suppliers, which need to be located close to the plant to ensure quick maintenance and minimise equipment downtime. To support this ecosystem, Tata Electronics is developing a vendor park spread across more than 350 acres in Dholera. The park will provide a plug-and-play facility for global suppliers.
Meanwhile, global semiconductor equipment maker ASML is considering bringing advanced lithography capabilities to India as the country’s semiconductor manufacturing capacity expands.
On policy support, the report said ISM 1.0 resulted in the approval of 12 facilities, including semiconductor fabrication and packaging units. ISM 2.0 has since been introduced, with a focus not only on manufacturing but also on semiconductor design capabilities.
"The Prime Minister in his address indicated that work on ISM 3.0 is already underway," the report said.
The report identified development of fabs, advanced packaging and semiconductor design capabilities as key policy focus areas. It also stressed that continued policy support would be important for the long-term development of the semiconductor ecosystem.
Execution of approved projects has also received administrative support, with Tata Electronics securing approvals within 100 days of submitting its proposals. State governments in Gujarat and Assam have supported the projects through infrastructure such as dedicated power and water supplies.
Tata Electronics’ Dholera facility is expected to begin commercial operations by 2028. Meanwhile, Micron’s semiconductor plant in Sanand began manufacturing in February 2026 and employs more than 2,000 people.
Global semiconductor equipment companies are also increasing their investments in India. Applied Materials has announced its India Vision 2035, with a USD 5 billion investment aimed at expanding local supply-chain capacity tenfold and developing a network of more than 100 suppliers.
LAM Research has committed INR 100 billion to develop its first vertically integrated silicon-component manufacturing unit in India. Tata Electronics has also entered into collaborations with around 16 entities covering areas such as materials, packaging and talent development.
The developments underline the growing focus on building a complete semiconductor ecosystem in India, covering manufacturing, packaging, equipment, suppliers and design capabilities. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)