The global semiconductor landscape is witnessing a structural shift as India accelerates its domestic manufacturing capabilities. Launched in December 2021, the comprehensive program driven by the India Semiconductor Mission, or ISM, has successfully transition the nation from policy formulation to commercial reality. Under a massive incentive framework of 760 billion rupees, the Indian government has approved ten major semiconductor project proposals by the end of 2025, drawing a cumulative investment value of 1.6 trillion rupees across six states. The recent budget push further introduces ISM 2.0 to deepen domestic supply chains, targeting raw materials, equipment, and semiconductor intellectual property.
A historic milestone was achieved on February 28, 2026, with the grand opening of Micron Technology's semiconductor assembly and test facility in Sanand, Gujarat. Representing a total investment of 2.75 billion US dollars, this state-of-the-art packaging unit has officially commenced commercial operations, delivering its first batch of made-in-India memory modules. The factory handles advanced dynamic random-access memory and flash memory wafers, turning them into complete storage solutions for the global artificial intelligence economy.
Capturing this immense market potential, top tier global players are embedding themselves into India's ecosystem. Renesas Electronics Corporation and Rohm Semiconductor from Japan are proactively establishing operations and partnerships to tap into local demand. Industry consensus indicates that the Indian semiconductor market, valued at approximately 38 billion US dollars in 2023, will soar to between 100 billion and 110 billion US dollars by 2030, driven by automotive, telecommunications, and high-performance computing hardware demands.
