NITI Aayog’s Frontier Tech Hub has officially released a strategic 10-year blueprint titled “Future of India’s Semiconductor Industry,” charting an actionable pathway to establish a USD 120–150 billion domestic semiconductor value chain by 2035. Unveiled by Union Finance Minister Nirmala Sitharaman and Minister for Electronics & IT Ashwini Vaishnaw, the report codifies India’s transition from preliminary ecosystem attraction to strategic depth under India Semiconductor Mission (ISM) 2.0.
The roadmap sets clear technical milestones, emphasizing that microelectronics can no longer be viewed merely as an industrial input, but as critical infrastructure underpinning telecommunications, automotive platforms, high-performance computing (HPC), and defense hardware.
The 5-P Pillar Architecture
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Pioneering (Frontier R&D & Native IP): A pivot from pure back-end design services to high-value indigenous IP creation, setting a target to develop more than 100 native semiconductor design IPs across AI, quantum, and power architectures.
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Policy & Long-Horizon Capital: Establishing structured financial mechanisms to mobilize patient, risk-tolerant capital required for capital-intensive cleanroom builds, specialized equipment procurement, and long-cycle wafer fabs.
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Production Focus: Channeling national production capacity into high-yield segments, notably Advanced Packaging, Outsourced Semiconductor Assembly and Test (OSAT), and Compound Semiconductors.
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People across the Talent Pyramid: Addressing workforce pipelines across all tiers—from fab operations technicians and cleanroom specialists to analog/digital EDA layout engineers and materials scientists.
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Partnerships: Deepening bilateral and multilateral technology alliances with trusted global nations to integrate domestic nodes into resilient, fault-tolerant supply chains.
Strategic Focus on Advanced Packaging and Wide-Bandgap Nodes
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Advanced Packaging & Heterogeneous Integration: Scaling 2.5D/3D architectures, System-in-Package (SiP), and advanced substrate interconnects, establishing India among the top three global destinations for packaging and OSAT.
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Wide-Bandgap (WBG) & Compound Semiconductors: Accelerating domestic processing capabilities in Silicon Carbide (SiC) and Gallium Nitride (GaN). These power-efficient substrates are critical for 800V automotive powertrains, renewable energy inverters, aerospace, and high-frequency 5G/6G RF transceivers.
Aligning with ISM 2.0 Objectives
The blueprint complements policy measures introduced under ISM 2.0 in the Union Budget 2026. While the initial phase of the mission centered on foundational fiscal support to draw initial OSAT and mature-node fab investments, this 10-year framework addresses the broader industrial supply chain—spanning raw chemicals, specialty gases, electronic design automation (EDA) tooling, and domestic component procurement mandates.
By connecting indigenous design talent with localized backend packaging and compound wafer fabrication, the policy framework provides a clear blueprint to insulate domestic original equipment manufacturers (OEMs) from geopolitical shocks and secure long-term digital sovereignty.
