Introduction
India’s dependency on semiconductor chip imports has surged dramatically over the past decade, with imports of monolithic integrated circuits (ICs), memory chips, and amplifiers witnessing exponential growth. In FY24, the total value of monolithic IC imports reached ₹1.05 lakh crore, marking a 2,000% increase compared to FY16. To address this reliance, India is ramping up domestic semiconductor manufacturing under the Semicon India Programme.
India’s Rising Semiconductor Imports
According to the Ministry of Commerce and Industry, semiconductor imports have grown significantly:
Monolithic IC imports surged by 2,000% between FY16 and FY24.
Memory chip imports rose by 4,500% during the same period.
Amplifier imports, used in wireless communication and audio equipment, increased by 4,800%.
The share of semiconductor chips in total imports increased from 0.19% in FY16 to 2.09% in FY25 (April-November).
Major Suppliers of Semiconductor Chips to India
For the past decade, China has been India’s top semiconductor supplier, accounting for nearly one-third of total import value. Other significant suppliers include:
Hong Kong
Japan
South Korea
Singapore
Taiwan
The Semicon India Programme: A Step Towards Self-Sufficiency
Launched in 2021, the Semicon India Programme aims to establish a domestic semiconductor manufacturing ecosystem. It has faced budget allocation challenges, but FY25's revised estimates have doubled compared to FY24, indicating stronger government efforts.
Key Semiconductor Facilities Under Development:
Tata Semiconductor Assembly and Test Facility (Morigaon, Assam)
Dholera Semiconductor Fabrication Facility (Fab) (Tata Electronics in collaboration with Powerchip Semiconductor Manufacturing Corporation, Taiwan)
These facilities will focus on chip assembly, testing, and packaging, adding value to India’s global semiconductor value chain.
Challenges in India's Semiconductor Industry
While India is progressing in assembly, testing, and packaging (ATP), it still lags in:
Electronic Design Automation (EDA) Software (used for chip designing)
Core Intellectual Property (IP) and Patents
Semiconductor Wafers (key material for chip production)
Fab Tools & ATP Equipment (machinery for manufacturing chips)
Advanced Chip Design
Future of India’s Semiconductor Industry
With rising global semiconductor demand, India’s focus on domestic production and strategic collaborations is crucial. The government’s push towards semiconductor self-reliance is expected to:
Reduce import dependency
Boost employment and technological innovation
Strengthen India's position in the global semiconductor supply chain
Conclusion
India’s semiconductor industry is at a turning point. While import reliance is at an all-time high, government initiatives like the Semicon India Programme are laying the foundation for domestic chip manufacturing. As India scales its semiconductor capabilities, it has the potential to become a major global player in the semiconductor industry.
For the latest updates on India’s semiconductor policies and manufacturing roadmap, visit Ministry of Electronics & IT.
By Team Atharva Examwise #atharvaexamwise
