NITI Aayog Urges $150 Billion Semiconductor Value Chain by 2035

The government policy think tank NITI Aayog released a report titled 'Future of India’s Semiconductor Industry' calling for the creation of a domestic semiconductor value chain worth $120-150 billion by 2035. The report projects that domestic demand will grow at a compound annual growth rate of 19%, potentially exceeding $200 billion by FY2035. To achieve this, NITI Aayog suggests the Government of India provide at least one-third of the estimated $135-180 billion in cumulative investment needed over the next decade to de-risk projects and attract private capital.

This strategic push aims to resolve a critical vulnerability, as India currently imports 90-95% of its semiconductor needs. Indigenous production is framed as essential for the 'Viksit Bharat 2047' goal, specifically to secure defense programs, space technology, and 5G/6G infrastructure. These efforts follow the India Semiconductor Mission (ISM) 1.0, which provided ₹76,000-crore in support for fabrication plants and testing units.

Private sector activity is coinciding with these policy goals. Cyient Semiconductors recently raised $30 million from Edelweiss and acquired a majority stake in US-based Kinetic Technologies for $85 million to expand its R&D and power management capabilities. Physical infrastructure is also progressing, with India's first fabrication plant in Dholera expected to begin production by 2028.