India Eyes role as an alternative to China with three semiconductor companies


India positions itself as a strong competitor China in the global chip industry by organizing the Semicon Exhibition for the first time. Prime Minister Narendra Modi has launched three semiconductor projects worth Rs 1.25 lakh crore, aiming to transform India into a major semiconductor hub.

The projects are expected to create significant employment opportunities, with TEPL’s greenfield project alone creating more than 30,000 jobs. India’s emergence as a major player in the global semiconductor supply chain represents a strategic shift in global supply chains and underlines India’s potential as a global technology powerhouse.

Union Railways and IT Minister Ashwini Vaishnaw said that India has commissioned four semiconductor manufacturing units and the country will become one of the largest semiconductor hubs in the world in the next five years. This ambitious vision is supported by forecasts from Hong Kong-based Counterpoint Technology Market Research, which estimates that the Indian semiconductor market will reach $64 billion by 2026, almost three times its size in 2019.

The Indian government’s commitment to the semiconductor industry is further demonstrated by the presence of key figures at the foundation stone laying ceremony. Union Minister Ashwini Vaishnaw, Minister of State (MoS) Rajeev Chandrasekhar, Ministry of Electronics and Information Technology (MeitY); Himanta Biswa Sarma, Chief Minister (CM) of Assam; Bhupendra Patel, CM of Gujarat; Vellayan Subbiah, Chairman, CG Power & Industrial Solutions Ltd.; and Natarajan Chandrasekaran, Chairman of Tata Sons, were present on the occasion.

The semiconductor projects are expected to create significant employment opportunities, with TEPL’s greenfield project alone expected to create more than 30,000 jobs. This supports Prime Minister Modi’s claim that India is delivering on its promises, reflecting his government’s commitment to building the country into a semiconductor manufacturing hub.

The growth of the Indian semiconductor industry extends beyond large companies. Two Karnataka-based companies, Saankhya Labs (a subsidiary of Tejas Network) and Sensesemi Technologies, have received approval under the Design-Linked Incentive (DLI) Scheme. These companies are developing advanced technologies such as Systems on Chip (SoC) for Internet of Medical Things (IoMT) and IoT devices, further strengthening India’s position in the global semiconductor market.

India’s emergence as a promising alternative to China for chip equipment manufacturers marks a major development in the global semiconductor industry. Backed by strong government commitment, strategic investments and increasing attractiveness as a manufacturing hub, India is on its way to becoming a major player in the global semiconductor supply chain. This shift represents a strategic realignment of global supply chains and underlines India’s potential as a global technology powerhouse.