India eyes top three global slot in advanced chip packaging under NITI Aayog’s 2035 roadmap

India must act now to build a resilient and globally competitive semiconductor ecosystem, with semiconductors becoming central to economic growth, national security and technological sovereignty, according to a NITI Aayog roadmap titled Future of India’s Semiconductor Industry. 

The roadmap, prepared by the NITI Frontier Tech Hub in consultation with experts and stakeholders, says semiconductors now power key sectors including artificial intelligence, telecom, electric mobility, defence, healthcare, digital infrastructure and advanced manufacturing. It warns that India’s dependence on imported chips is a strategic vulnerability at a time when global supply chains are being reshaped by geopolitical tensions and technology competition. 

According to the report, the global semiconductor market is expected to exceed $1.5 trillion by 2035, while India’s semiconductor demand could reach around $200 billion by the same year. However, nearly 90-95 per cent of India’s current semiconductor demand is met through imports, exposing critical sectors to supply disruptions and foreign exchange outflows. 

The roadmap says India should target building a $120-150 billion semiconductor value chain by 2035, focusing on areas where it can become globally indispensable rather than merely trying to catch up in the wafer fabrication race. It identifies advanced packaging, compound semiconductors, mature-node manufacturing, design leadership and critical materials as areas where India can build scale and strategic advantage. 

The report recommends that India aim to become a top-three global destination for outsourced semiconductor assembly and test, and advanced packaging. It also calls for the country to build leadership in wide-bandgap materials such as silicon carbide and gallium nitride, which are critical for electric vehicles, renewable energy, telecom and power electronics. 

India’s strategy, the roadmap says, should be built around five pillars — Pioneering, Policy and Investment, Production, People and Partnership. These cover frontier R&D, long-term capital mobilisation, fabs and packaging, talent development and global collaboration. 

The roadmap estimates that India will need cumulative semiconductor investments of nearly $135-180 billion over the next decade. It recommends that the government commit at least one-third of this amount to de-risk projects and attract large-scale private capital. 

On production, the report suggests a selective and demand-aligned approach. It calls for India to focus on mature logic and mixed-signal nodes, compound semiconductor fabs, advanced packaging and secure manufacturing for defence, aerospace and strategic infrastructure. 

The report also flags talent as a critical constraint, saying India must build a full semiconductor talent pipeline spanning fab-ready technicians, manufacturing engineers, packaging specialists, materials scientists and system-level architects. 

The roadmap says the next decade will be decisive for India’s semiconductor ambitions. With sustained commitment, disciplined execution and strategic clarity, India can convert semiconductors from an import dependency into a source of economic strength, technological sovereignty and global influence.