India's Semiconductor Sector: A Leap Towards Commercial Production and Ecosystem Growth

India's semiconductor industry is making significant strides from policy discussions to actual production, with initiatives like Semicon 2.0 and SEMICON India 2026 paving the way for investment and localization. The recent SEMICON India event showcased impressive participation and investment commitments, with projections indicating the market could reach $200 billion by 2035. Industry leaders emphasize the importance of creating a comprehensive ecosystem that fosters manufacturing, supplier demand, and technological advancement. This article delves into the current state and future prospects of India's semiconductor sector.

By Narendra Chaudhary Sep 24, 2026, 12:08 IST

India's Semiconductor Industry on the Rise

New Delhi: The semiconductor sector in India is transitioning from mere policy discussions to actual commercial production and ecosystem development. Initiatives like Semicon 2.0 and SEMICON India 2026 are laying the groundwork for what industry experts refer to as a "positive spiral" of investment, manufacturing, and localization.

Following the SEMICON India 2026 event, Ashok Chandak, who serves as President of SEMI India and IESA, remarked that India is evolving from a phase of credibility to one of capability in the semiconductor field.

"While Semicon 1.0 established the groundwork, Semicon 2.0 is now enhancing the ecosystem," Chandak noted, emphasizing that investments are increasingly leading to actual manufacturing, partnerships, and commercialization.

The fifth iteration of SEMICON India took place from September 17 to 19 at Yashobhoomi in New Delhi, attracting 51,656 registrations, nearly 40,000 attendees, over 600 exhibitors, and representatives from 52 nations.

The event also facilitated 54 Memorandums of Understanding (MoUs) and strategic announcements, along with more than 5,000 B2B discussions and investment commitments totaling around $7 billion.

A report by EY-IESA unveiled during the event forecasts that India's semiconductor market could soar to $200 billion by 2035, fueled by advancements in chip manufacturing, packaging, materials, equipment, design, and electronics.

Chandak highlighted that the industry is increasingly becoming a comprehensive ecosystem involving design and intellectual property, fabrication plants, advanced packaging, equipment, materials, logistics, talent, and electronics manufacturing.

"Investment leads to manufacturing, which in turn generates supplier demand. This demand fosters localization, which ultimately cultivates skills and technology," he explained, characterizing this cycle as a positive spiral that could draw in additional investments.