View source for Electronics and semiconductor manufacturing industry in India

{{Short description|none}}
{{Multiple issues|
{{advert|date=September 2018}}
{{update|date=September 2018}}
}}In the early twenty-first century; foreign investment, government regulations and incentives promoted growth in the Indian [[electronics industry]]. The [[semiconductor industry]], which is its most important and resource-intensive sector, profited from the rapid growth in domestic demand. Many industries, including [[Telecommunications in India|telecommunications]], [[Information technology in India|information technology]], [[Automotive industry in India|automotive]], [[engineering]], [[medical electronics]], electricity and solar [[Photovoltaics|photovoltaic]], [[Defence industry of India|defense]] and aerospace, [[consumer electronics]], and appliances, required semiconductors. However, as of 2015, progress was threatened by the talent gap in the Indian sector, since 65 to 70 percent of the market was dependent on imports.<ref>{{Cite web |last=Chengappa |first=Sangeetha |date=2015-02-05 |title=Electronics manufacturing gears up for change but skill gap remains |url=https://www.thehindubusinessline.com/news/electronics-manufacturing-gears-up-for-change-but-skill-gap-remains/article6861498.ece |access-date=2024-02-21 |website=BusinessLine |language=en}}</ref>

==Electronics industry==

===Statistics and trends===

====Market-size====
India's electronic sector, which ranks among the world's largest in terms of consumption, is expected to increase from $69.6 billion in 2012 to $400 billion by 2020. It was primarily driven by an increase in demand, which was expected to expand at a [[compound annual growth rate]] of over 25% during that time.<ref>{{cite web |url=http://www.ibef.org/industry/electronics-presentation|title=Electronics presentation |publisher= [[India Brand Equity Foundation]]|access-date=2016-07-09}}</ref>
Imports accounted for 65% of the demand for electrical products in 2013–14. A Frost & Sullivan-IESA data analysis indicates that 60% of total electronic usage can be attributed to five high priority product categories. These are, in descending order, desktop computers (4.39%), laptops (5.54%), mobile phones (38.85%), and flat panel display televisions (7.91%).<ref>{{cite news|url=http://wap.business-standard.com/article/economy-policy/65-per-cent-of-electronic-items-demand-met-by-imports-report-114011300761_1.html|title=65 per cent of electronic items' demand met by imports: Report|newspaper=Business Standard India|date=13 January 2014|publisher=Business Standard|access-date=2016-07-25}}</ref>

The consumer electronics and appliance industry in India, which was valued at $9.7 billion in 2014, is expected to increase at a compound annual growth rate of 13.4% to reach $20.6 billion by 2020. [[Set-top box]]es are expected to increase at the quickest rate among consumer electronics, with Y-o-Y growth of 28.8% forecast between 2014 and 2020. Televisions will grow at the rate of 20%, refrigerators at 10%, washing machines at 8–9%, and air conditioners at roughly 6-7%.<ref name="livemintconelseg">{{cite web|url=http://www.livemint.com/Consumer/lZanz69Lu3mxh36H7bcDCL/Indian-consumer-electronics-industry-to-touch-206-bn-by-20.html|title=Indian consumer electronics to touch 20.6 bn by 2020|date=24 July 2015|publisher=Livemint|access-date=2016-09-20}}</ref> India's demand for IT devices was projected to be worth $13 billion in 2013.<ref name=ndtvdellin /> By 2029–2030, it is estimated that India's aerospace and defense (A&D) electronics sector might be valued up to $70 billion, of which $55 billion could come from electronics used in platforms that need to be purchased and the other $17-18 billion from [[System of systems|system-of-system]] initiatives.<ref>{{cite news|url=https://economictimes.indiatimes.com/default-subsec/defence/aerospace-defence-electronics-market-to-reach-72-billion-by-2029-report/articleshow/53545961.cms|title=Aerospace & defence electronics market to reach $72 billion by 2029: Report|newspaper=The Economic Times|access-date=2016-09-20}}</ref>

====Domestic production====
In 2012–13, 2013–14, and 2014–15, the total amount of electronic goods produced domestically was [[₹]]164,172 [[crore]]s, ₹180,454 crores, and ₹190,366 crores, respectively.<ref name="Times 131415"/> India's electronics hardware manufacturing sector is expected to generate $104 billion in electronic goods by 2020, up from $32.46 billion in 2013–14. India produced 1.6% of the world's electronics gear in FY13. With 31% of the entire production of electronic goods in India in FY13, the communication and broadcasting equipment industry held a leading position, followed by consumer electronics at 23%.<ref name="escindia 1415">{{cite web|url=http://www.escindia.in/uploads/HARD1415.pdf|title=Electronics Hardware|publisher=ESC|access-date=2016-07-09|archive-url=https://web.archive.org/web/20160815204525/http://www.escindia.in/uploads/HARD1415.pdf|archive-date=2016-08-15|url-status=dead}}</ref> In the April–June quarter of 2015, 24.8% of the cellphones transported into the nation were either assembled or made in India, an increase from 19.9% the quarter before.<ref>{{cite web|url=http://www.huffingtonpost.in/2015/08/24/electronics-manufacture-i_n_8029918.html |title=Global Electronics Manufacturers Propose Rs 90,000 Crore Investment In India |publisher=Huffingtonpost.in |date=24 August 2015 |access-date=18 July 2016}}</ref><ref>{{cite web|url=http://www.dnaindia.com/money/report-make-in-india-govt-receives-proposals-worth-rs-90000-crore-from-global-electronics-companies-2117755 |title=Make in India: Govt receives proposals worth Rs 90,000 crore from global electronics companies |work=Dnaindia.com |date=24 August 2015 |access-date=18 July 2016}}</ref><ref>{{cite web|url=http://www.firstpost.com/business/e-boost-for-make-in-india-global-electronic-companies-line-up-rs-90000-cr-for-india-plants-2404638.html |title=E-boost for Make in India: Global electronic companies line up Rs 90,000 cr for India plants |work=Firstpost |date=24 August 2015 |access-date=18 July 2016}}</ref>

Out of the 220 million mobile sets that were shipped in India in 2015–16, 110 million of those units were either manufactured or assembled there in the past year, up from 60 million the year before.<ref name="mob16">{{cite news|url=https://timesofindia.indiatimes.com/tech-news/37-mobile-manufacturing-plants-set-up-in-india-in-last-1-year-ravi-shankar-prasad/articleshow/53908307.cms|title=37 mobile manufacturing plants set up in India in last 1 year: Ravi Shankar Prasad|work=The Times of India|date=29 August 2016 |access-date=2016-08-29}}</ref> The value of mobile handset production increased by 185% in 2015–16, from ₹19,000 crores to ₹54,000 crores.<ref name="hindu54000">{{cite web|url=http://m.thehindubusinessline.com/info-tech/mobile-handset-manufacturing-is-now-a-54000-crore-industry/article9022535.ece|title=Mobile handset manufacturing is now a INR 54,000 crore industry|date=23 August 2016 |publisher=Hindu Business Line|access-date=2016-09-20}}</ref> Turning the [[Make in India]] initiative into a reality for the electronics and hardware sector was the title of an [[ASSOCHAM]]-[[Ernst & Young|EY]] research. It predicted that the Indian electronics and hardware industry will develop at a CAGR of 13%–16% in 2013–18, from a level of $75 billion in 2016 to $112–130 billion by 2018.<ref>{{cite news|url=https://timesofindia.indiatimes.com/tech-news/indian-electronics-and-hardware-industry-to-grow-at-a-cagr-of-13-16-assocham-ey-study/articleshow/51811218.cms|title= Indian electronics and hardware industry to grow at a CAGR of 13-16%: Report|work=The Times Of India|date= 13 April 2016|access-date=2016-07-13}}</ref>

In May 2016, an [[NITI Aayog]] research stated that India's electronics sector contributes just 1.7% of GDP, but in [[Taiwan]], [[South Korea]], and [[China]], it accounts for 15.5%, 15.1%, and 12.7% of GDP, respectively.<ref>{{cite web|url=http://niti.gov.in/writereaddata/files/document_publication/Electronics%20Policy%20Final%20Circulation.pdf|title=Make in India - Strategy for Electronic Products|publisher=NITI Aayog|access-date=2016-07-13}}</ref> India now makes up less than 5% of the global electronics manufacturing sector, with the majority of its electronics production going towards the country's own market.<ref>{{Cite web|url=https://www.kearney.com/web/answers/article/?/a/does-india-represent-a-viable-electronics-manufacturing-location|title = Read @Kearney: Does India represent a viable electronics manufacturing location? What are potential drawbacks?}}</ref>

In 2014, the percentage of localized input/value addition in televisions was approximately 25–30% due to the importation of panels, semiconductors, and glass required for the production of [[LCD]]/[[LED]] TVs. Due to the importation of the compressor, refrigerant, motor, and coil, the localization of air conditioners was only approximately 30% to 40%. About 35–40% of the parts used in set-top boxes came from within the country. For refrigerators and washing machines, the localized content was approximately 70%.<ref name="livemintconelseg" /> It is stated that in 2016, the percentage of localized value addition created in mobile phone assembly in India was barely 2-8%.<ref name="hindu54000" />

The [[Ordnance Factory Board]]'s [[Opto Electronics Factory]] (OLF), located in [[Dehradun]], is a unique facility in India that produces opto-electronic goods for defense use<ref>{{Cite web |date=March 2015 |title='Make in India' Mission and Defence Industry Hubs |url=https://indianarmy.nic.in/writereaddata/documents/dsa080715.pdf |archive-url=https://web.archive.org/web/20150914222612/https://indianarmy.nic.in/writereaddata/documents/dsa080715.pdf |archive-date=2015-09-14 |access-date= |website=indianarmy.nic.in}}</ref><ref>{{Cite web |title=Indian Ordnance Factories: Opto Electronics Factory |url=http://ofb.gov.in/units/index.php?unit=olf&page=about&lang=en |archive-url=https://web.archive.org/web/20131021095424/http://ofb.gov.in/units/index.php?unit=olf&page=about&lang=en |archive-date=2013-10-21 |access-date=2026-02-17 |website=ofb.gov.in}} </ref> Polymatech Electronics, located in Chennai, is another facility that produces Opto Semi-Conductor Chips. The Company signed MoU with Government of Tamil Nadu on 27 May 2020. The project was also acknowledged under SPECS program. Hon'ble Prime Minister of India has visited Polymatech Electronics at Semicon India 2023[[Samsung Electronics|Samsung]], a leading Korean electronics company, intends to begin producing laptops at its Noida plant in India in 2024.<ref>{{Cite web |last=Haris |first=Mohammad |date=2024-01-29 |title=Samsung to Start Making Laptops in India This Year: Report |url=https://www.news18.com/business/samsung-to-start-making-laptops-in-india-this-year-report-8758595.html |access-date=2024-01-29 |website=News18 |language=en}}</ref> Airport navigation aids are presently produced worldwide by Thales Reliance Defence Systems, a joint venture electronics company of [[Thales Group]], while [[Bharat Electronics]]-Thales Systems, based in Bangalore, produces high-tech items like low-band receivers for the [[Dassault Rafale]]'s electronic warfare suite.<ref>{{Cite news |last=Peri |first=Dinakar |date=2024-02-04 |title=Thales Group to expand strategic collaborations, set up MRO for civil aviation in India |url=https://www.thehindu.com/business/Industry/thales-group-to-expand-strategic-collaborations-set-up-mro-for-civil-aviation-in-india/article67811446.ece |access-date=2024-02-10 |work=The Hindu |language=en-IN |issn=0971-751X}}</ref> On 18 January 2024, [[Grupo Antolin]] inaugurated a new production plant in [[Chakan, Pune|Chakan]] for electronics, [[Human-Machine Interface]] systems, and advanced lighting. In India, Grupo Antolin provides parts to [[Volkswagen]], [[Škoda Auto]], [[Suzuki]], [[Toyota]], [[Mahindra & Mahindra]], and [[Tata Motors]].<ref>{{Cite news |last=Shinde |first=Swati |date=2024-01-18 |title=Antolin will manufacture advanced lighting, HMI systems and electronics in its new Chakan facility |url=https://timesofindia.indiatimes.com/business/india-business/antolin-will-manufacture-advanced-lighting-hmi-systems-and-electronics-in-its-new-chakan-facility/articleshow/106965067.cms |access-date=2024-02-10 |work=The Times of India |issn=0971-8257}}</ref>

[[Lenovo]] intends to increase its manufacturing and is considering producing [[Server (computing)|servers]] in India in order to benefit from the [[Production Linked Incentive schemes in India|production-linked incentive]] (PLI) program for IT hardware.<ref>{{Cite web |last=Aulakh |first=Gulveen |date=2024-02-08 |title=Lenovo mulls making servers in India |url=https://www.livemint.com/companies/news/lenovo-mulls-making-servers-in-india-11707374523316.html |access-date=2024-02-11 |website=mint |language=en}}</ref> In 2024, [[Samsung Electronics]] intends to begin producing [[laptop]]s at its Noida plant. Already, preparations are in motion.<ref>{{Cite news |last= |date=2024-01-29 |title=Samsung to start making laptops in India this year |url=https://www.thehindu.com/sci-tech/technology/samsung-to-start-making-laptops-in-india-this-year/article67789010.ece |access-date=2024-02-11 |work=The Hindu |language=en-IN |issn=0971-751X}}</ref> [[Intel]] showcased a comprehensive range of Made in India laptops and IT goods, including locally made servers, during the India Tech Ecosystem Summit 2024.<ref>{{Cite news |date=2024-02-02 |title=Intel introduces new "Make in India" laptops and IT products: All the details |url=https://timesofindia.indiatimes.com/gadgets-news/intel-introduces-new-make-in-india-laptops-and-it-products-all-the-details/articleshow/107370142.cms |access-date=2024-02-11 |work=The Times of India |issn=0971-8257}}</ref> By Q2 2024, [[Google]] has instructed vendors to begin producing Pixel smartphones in India. The production line for Google's high-end [[Pixel 8 Pro]] will be ready first.<ref>{{Cite web |last=Li |first=Lauly |date=22 February 2024 |title=Google plans to begin Pixel phone production in India in Q2 |url=https://asia.nikkei.com/Spotlight/Supply-Chain/Google-plans-to-begin-Pixel-phone-production-in-India-in-Q2 |access-date=2024-02-22 |website=Nikkei Asia |language=en-GB}}</ref> In India, [[Dixon Technologies]] is going to manufacture Google [[Pixel 8]] smartphones. September 2024 will see the release of the first batch into the market. Monthly production of Pixel smartphones is expected to reach 100,000 devices, with 25–30% of those units going toward export.<ref>{{cite news |last1=Singh |first1=Rimjhim |title=Dixon Technologies set to manufacture Google Pixel 8 smartphones in India |url=https://www.business-standard.com/companies/news/dixon-technologies-set-to-manufacture-google-pixel-8-smartphones-in-india-124052200861_1.html |access-date=27 May 2024 |publisher=Business Standard |date=22 May 2024}}</ref>

[[Apple Inc.]] plans to begin producing [[AirPods]] in India from 2025. With [[Jabil]] in [[Pune]], the business has begun producing wireless charging case parts on a trial basis. Parts of AirPods wireless charging cases are already being produced by Jabil and delivered to China and Vietnam.<ref>{{Cite web |last=Khan |first=Danish |date=8 July 2024 |title=Apple may revive plans to make iPads in India, eyes Pune for AirPod cases |url=https://www.moneycontrol.com/technology/apple-may-bring-back-plans-to-make-ipads-in-india-eyes-pune-for-airpod-cases-article-12763820.html |access-date=8 July 2024 |website=Money Control}}</ref> 

====Exports and imports====
India was a net importer of electronics as of 2016, with China accounting for the majority of India's imports. Electronics had surpassed gold in 2015 and ranked second in terms of value among all imports into the nation, right behind crude oil.<ref name="Times 40">{{cite news|url=https://economictimes.indiatimes.com/industry/cons-products/electronics/electronics-import-may-rise-to-40-billion-in-fy16-due-to-smartphone-led-surge/articleshow/49460156.cms|title= Electronics import may rise to $40 billion in FY16 due to smartphone-led surge|newspaper=The Economic Times|access-date=2016-07-25}}</ref> India spent more money on semiconductor imports than on oil, according to research published in 2019 by Professor Vikram Kumar, an emeritus professor of physics at [[IIT Delhi]].<ref>{{cite web |title=In India more money is spent on import of semiconductors than on oil |url=https://learnersbucket.com/tech/in-india-more-money-is-spent-on-import-of-semiconductors-than-on-oil/ |website=Learnersbucket |date=15 December 2018 |publisher=Prashant Yadav |access-date=5 April 2019 |ref=learnersbucket}}</ref> According to a [[Ministry of Commerce and Industry (India)|Ministry of Commerce and Industry]] report, one of the six industries that could assist India in reaching over 70% of its target of $1&nbsp;trillion in goods exports by FY30 is electronics.<ref>{{Cite news |last=Suneja |first=Kirtika |date=2024-01-29 |title=Electronics, engineering goods among six focus sectors for $1 trillion exports target |url=https://economictimes.indiatimes.com/news/economy/foreign-trade/electronics-engineering-goods-among-six-focus-sectors-for-1-trillion-exports-target/articleshow/107210108.cms |access-date=2024-01-29 |work=The Economic Times |issn=0013-0389}}</ref>

As per Economic Survey 2026, electronics has grown from India's seventh largest export category in [[fiscal year]] 2022 to become second largest in FY2026. The country has already exported $22.2&nbsp;billion of electronics by 29 January 2026 for FY2026. This was backed by the expansion was the mobile manufacturing segment which rose from {{INRConvert|18000|c|lk=on|year=2015|mode=historical}} in FY2015 to {{INRConvert|5.45|lc|lk=on|year=2025}} in FY2025.<ref name=":2">{{Cite web|title=India’s electronics exports surge to $22.2 billion, set to become second-largest export item; says Economic Survey|url=https://www.newindianexpress.com/business/2026/Jan/29/indias-electronics-exports-surge-to-222-billion-set-to-become-second-largest-export-item-says-economic-survey|website=The New Indian Express|date=2026-01-29|access-date=2026-01-31|language=en|first=Rakesh|last=Kumar}}</ref>

====Exports====
The estimated value of India's electronics exports in FY13 was $7.66 billion, down slightly from $8.15 billion in FY12; however, due to the depreciation of the [[Indian rupee|rupee]], they increased in [[Indian rupee|INR]] terms during the same time, rising from [[₹]]44,000 crore to ₹46,300 crore. India's electronics exports were dominated in 2013–14 by the telecom sector, which was followed by computing, consumer electronics, instruments, and electronic components. The increasing demand for Indian electronics items overseas is believed to be mostly driven by advancements in technology and competitive cost-effectiveness. Indian exports of electronic gear nearly doubled in value from ₹109,940 crores in 2009–10 to ₹196,103 crores in 2013–14, measured in rupees.<ref name="escindia 1415"/> India's electronics exports fell to $6 billion in FY14, accounting for 0.28% of the world's electronics trade.<ref name="Times 40"/>

India recorded a 22.24% growth in electronics exports, exceeding the $20 billion milestone within the nine months of the FY 2023-24. Between April and December 2023, mobile phone exports—which made up 52% of all electronics exports—reached $10.5 billion. Notably, the [[iPhone]] became the main export engine during this time, accounting for 35% of all electronics exports and an astounding 70% of all mobile exports from the nation. The value of iPhone exports topped $7 billion only in December 2023. the nearly seven-fold increase in mobile exports, which went from $1.6 billion in FY19 to $11.1 billion in FY23.<ref>{{Cite news |last=Mukherjee |first=Vasudha |date=22 January 2024 |title=India's electronics exports surpass $20 billion, iPhone dominates surge |url=https://www.business-standard.com/economy/news/india-s-electronics-exports-surpass-20-billion-iphone-dominates-surge-124012200147_1.html |access-date=25 January 2024 |work=Business Standard}}</ref> In the same time frame, total electronics exports increased by almost three times, from $8.4 billion in FY19 to $23.6 billion in FY23.<ref>{{Cite news |last=Rathee |first=Kiran |date=2024-01-21 |title=Electronics exports grow at record 22 per cent in April–December |url=https://economictimes.indiatimes.com/industry/cons-products/electronics/electronics-exports-grow-at-record-22-per-cent-in-april-december/articleshow/107034548.cms |access-date=2024-01-25 |work=The Economic Times |issn=0013-0389}}</ref>

During their results call for the December quarter in 2023, Indian companies such as [[Havells]], [[Dixon Technologies]], [[Voltas]], and [[Blue Star (company)|Blue Star]] stated that they are building a foundation for exports to industrialized nations such as the US and those in Europe. Havells intends to supply air conditioners in the US market after establishing a company there. About 28–30% of [[Motorola]] smartphone output is now sent to the US as Dixon Technologies increases its exports of the devices. Appliance retailer [[Arçelik]], which markets appliances in Europe under the [[Beko]] name, has placed export orders with Voltas for frost-free refrigerators and dishwashers.<ref>{{Cite news |last=Mukherjee |first=Writankar |date=2024-02-12 |title=Indian consumer electronics break boundaries; export surge to the US and Europe |url=https://economictimes.indiatimes.com/industry/cons-products/electronics/indian-consumer-electronics-break-boundaries-export-surge-to-the-us-and-europe/articleshow/107602956.cms |access-date=2024-02-12 |work=The Economic Times |issn=0013-0389}}</ref> India exported $29.12 billion worth of electronics in 2023–24, a 23.6 percent increase over the previous year. The [[United States]], [[United Arab Emirates]], [[Netherlands]], [[United Kingdom]], and [[Italy]] are the top five export markets for electronics goods. Exports also expanded into new markets in FY24, including [[Turkmenistan]], [[Honduras]], [[El Salvador]], [[Mongolia]], [[Montenegro]], and the [[Cayman Islands]].<ref>{{Cite web |last=Nandi |first=Shreya |date=16 April 2024 |title=India's electronics exports increase 23.6% to $29.12 billion in FY24 |url=https://www.business-standard.com/economy/news/india-s-electronics-exports-increase-23-6-to-29-12-billion-in-fy24-124041600004_1.html |access-date=16 April 2024 |website=Business Standard}}</ref> Limited amounts of semiconductor chips packaged at [[Tata Electronics]]' Bengaluru R&D Center are now being exported to partners in the US, [[Europe]], and [[Japan]]. Currently, these packed chips are under the trial program.<ref>{{Cite news |last1=Rekhi |first1=Dia |last2=Aryan |first2=Aashish |date=2024-05-08 |title=Tata Electronics begins export of semiconductor chip samples from Bengaluru centre |url=https://economictimes.indiatimes.com/tech/technology/tata-begins-export-of-chip-samples/articleshow/109899909.cms?from=mdr |access-date=2024-05-12 |work=The Economic Times |issn=0013-0389}}</ref>

For the US and European markets, [[Foxconn]] and [[Dixon_Technologies#Padget_Electronics|Padget Electronics]] will produce the pro and base versions of the Pixel smartphone, respectively, along with other Google devices. Foxconn's [[Sriperumbudur]] factory has already begun trial production. Full-scale manufacturing is scheduled to begin in September 2024.<ref>{{Cite web |last=Khan |first=Danish |date=6 July 2024 |title=Google to export India-made Pixel smartphones to Europe, US; trial production begins |url=https://www.moneycontrol.com/technology/google-to-export-india-made-pixel-smartphones-to-europe-us-trial-production-begins-article-12762020.html |access-date=10 July 2024 |website=moneycontrol}}</ref>

According to the Economic Survey 2026, electronics has grown from India's seventh largest export category in [[fiscal year]] 2022 to become third largest in FY2025. The survey was presented to the [[Indian Parliament]] on 29 January 2026. Further, electronics export had already touched $22.2&nbsp;billion in the running fiscal year 2026, making it the second largest exports category just after [[petroleum products]]. The major reason for the expansion was the mobile manufacturing segment which rose from {{INRConvert|18000|c|lk=on|year=2015|mode=historical}} in FY2015 to {{INRConvert|5.45|lc|lk=on|year=2025}} in FY2025, marking a 30-flod increase in a decade. The expansion from two mobile production units to over 300 moved India from being a net importer to second-largest mobile manufacturer.<ref name=":2" />

====Imports====
In 2012–13, 2013–14, and 2014–15, the estimated total value of electronic products imports was ₹1,79,000 crore (US$28 billion), ₹1,95,900 crore (US$31 billion), and ₹2,25,600 crore (US$37 billion), respectively.<ref name="Times 131415">{{cite news|url=https://timesofindia.indiatimes.com/tech-news/electronic-goods-imports-rise-to-rs-225600-crore-in-fy15/articleshow/51227271.cms|title=Electronic goods imports rise to Rs 2,25,600 crore in FY15|work=The Times Of India|date=2 March 2016 |access-date=2016-07-25}}</ref> Based on data from the Ministry of Commerce and Industry, the importation of phones surged dramatically from $665.47 million in 2003–04 to $10.9 billion in 2013–14. Over the same time period, phone imports from China increased from $64.61 million to $7 billion.<ref>{{cite web|url=http://www.livemint.com/Industry/j6PvasGzddHr29lPDe63eL/Your-fascination-for-smartphones-is-driving-Indias-trade-de.html|title=Your fascination for smartphones is driving India's trade deficit|date=16 December 2014|publisher=Livemint|access-date=2016-07-25}}</ref> China was responsible for 67% of India's $23.5 billion electronics trade imbalance in 2013–14. Electronics imports could reach $40 billion in FY16, up from about $28 billion in FY11.<ref name="Times 40"/> In 2016, local electronics production started to grow, signaling the start of a recovery during a period of low Indian exports. Electronic exports increased by 7.8% to $0.5 billion in January 2016, while electronic imports, which made up 27% of India's annual trade imbalance, decreased by 2.2% to $3.2 billion.<ref>{{cite web|url=http://www.livemint.com/Industry/14DELtag6kPOlM75ynD5RK/Has-Indias-electronic-manufacturing-turned-a-corner.html|title=Has India's electronic manufacturing turned a corner?|date=18 February 2016|publisher=Livemint|access-date=2016-07-09}}</ref>

===Government initiatives===
To promote overall growth and open job opportunities, projected to be more than 28&nbsp;million by attracting investments worth $100&nbsp;billion, the Indian central government has sought to reduce the country's electronics import bill from 65% in 2014–15 to 50% in 2016 and gradually to a net-zero electronics trade by 2020.<ref>{{cite news|url=http://wap.business-standard.com/article/economy-policy/pm-wants-net-import-export-of-electronics-to-be-zero-by-2020-114080401055_1.html|title=PM wants net export import of electronics to be zero by 2020|newspaper=Business Standard India|date=5 August 2014|publisher=Business Standard|access-date=2016-07-22|last1=Agarwal|first1=Surabhi}}</ref>  India has pursued a two-pronged strategy of import substitution and export encouragement, through the [[Make in India]] campaign coupled with the [[Digital India]] campaign, the [[Startup India]]<ref>{{cite web|url=http://startupindia.gov.in/upload/Startup_India_FAQs.pdf|title=FAQs|publisher=Startup India|access-date=2016-07-13|archive-url=https://web.archive.org/web/20160418065439/http://startupindia.gov.in/upload/Startup_India_FAQs.pdf|archive-date=2016-04-18|url-status=dead}}</ref> and the [[Skill India]] campaigns. The government has fostered an environment conducive to [[foreign direct investment]] (FDI) inflow in several ways, as outlined in the National Electronics Policy<ref>{{cite web|url=http://meity.gov.in/sites/upload_files/dit/files/NPE_Notification.pdf|title=National Policy on Electronics|publisher=Meity|access-date=2021-02-23|archive-url=https://web.archive.org/web/20140513203934/http://deity.gov.in/sites/upload_files/dit/files/NPE_Notification.pdf|archive-date=2014-05-13|url-status=live}}</ref> and the National Telecom Policy.<ref>{{cite web|url=http://www.digitalindia.gov.in/content/electronics-manufacturing|title=Electronics Manufacturing|publisher=a 1 India|access-date=2016-07-09}}</ref>
*Increased liberalisation of Foreign Direct Investment (FDI): 100% FDI through an automatic route.
*Relaxation of tariffs.
*Establishment of Electronic Hardware Technology Parks (EHTPs) and Special Economic Zones (SEZs).
*Implementation of Preferential Market Access (PMA).<ref>{{cite web|url=http://meity.gov.in/esdm/pma|title=Preference for Domestically Manufactured Electronic Goods(PMA)|publisher=Meity|access-date=2021-02-23|archive-url=https://web.archive.org/web/20160713084248/http://www.deity.gov.in/esdm/pma|archive-date=2016-07-13|url-status=live}}</ref>
*Imposing basic customs duties on certain items falling outside the framework of the IT free trade agreement.
*Exempting import-dependent inputs/components for PC manufacturing from a Special Additional Duty (SAD).
*Incentivising the export of certain electronics goods in the Focus Products scheme under the Foreign Trade Policy.
*Funding 3000 PhD students in electronics and [[Information technology|IT]] across the Indian universities.
*Imposing an education [[cess]] on imported electronic products for parity.
*To offer incentives of up to $1.7&nbsp;billion by 2020 to electronics hardware manufacturing entities setting up shops in India to help offset the disadvantages of developing the new industry in the country, a Modified Special Incentive Package Scheme (MSIPS)<ref>{{cite web|url=http://meity.gov.in/sites/upload_files/dit/files/MSIPS%20Notification.pdf|title=MSIPS|publisher=Ministry of Electronics and Information Technology|access-date=2021-02-23|archive-url=https://web.archive.org/web/20130819044818/http://deity.gov.in/sites/upload_files/dit/files/MSIPS%20Notification.pdf|archive-date=2013-08-19|url-status=live}}</ref> has been initiated. The government has approved 40 proposals worth over INR9538&nbsp;crore between January 2014 and June 2015 under the scheme.<ref>{{cite web|url=http://www.msips.in/MSIPS/|title=Welcome to e-MSIPS|publisher=MSIPS|access-date=2016-07-09|archive-url=https://web.archive.org/web/20160703031040/http://www.msips.in/MSIPS/|archive-date=2016-07-03|url-status=dead}}</ref>
*The establishment of greenfield and brownfield Electronic Manufacturing Clusters (EMCs) is encouraged under the EMC scheme.<ref>{{cite web|url=http://meity.gov.in/sites/upload_files/dit/files/Notification-EMC-Gazette.pdf|archive-url=https://web.archive.org/web/20220314174013/https://www.meity.gov.in/sites/upload_files/dit/files/Notification-EMC-Gazette.pdf|url-status=dead|archive-date=March 14, 2022|title=Electronic Manufacturing Clusters|publisher=Ministry of Electronics and Information Technology|access-date=2021-02-23}}</ref> Some 200 EMCs are projected by 2020, of which 30 are already in the process of establishment.

The National Institution for Transforming India ([[NITI Aayog]]), a policy think-tank under the Indian central government, has suggested in a draft report<ref>"Make in India - Strategy for Electronic Products"</ref> that a policy be adopted to provide a tax holiday for ten years to firms investing US$1&nbsp;billion or more that also create 20,000 jobs. The report, hinting at a policy tilt toward the [[Information Technology Agreement]]-2 (ITA -2),<ref>{{cite web|url=https://www.wto.org/english/tratop_e/inftec_e/inftec_e.htm|title=Information Technology Agreement|publisher=The World Trade Organization|access-date=2016-07-13}}</ref> also suggests that India should re-strategize its defensive policies regarding Free Trade agreements (FTAs) and aggressively pursue export-oriented policies to utilize these FTAs as opportunities to obtain duty-free access to the electronics markets of its FTA partners.<ref>{{cite news|url=https://economictimes.indiatimes.com/news/economy/policy/niti-aayog-seeks-tax-holiday-on-1-billion-investment-in-electronic-manufacturing/articleshow/52601926.cms|title=Niti Aayog seeks tax holiday on $1 billion investment in electronic manufacturing|newspaper=The Economic Times|date=5 June 2016 |access-date=2016-07-13}}</ref>

The Indian government launched Digital India futureLABS on 3 February 2024, with the aim of doing research and development in the areas of automotive, computer, communication, [[industrial electronics]], strategic electronics, and [[internet of things]]. Funding will originate from the [[Ministry of Electronics and Information Technology]]'s R&D budget. The primary organization for creating the general strategy, SOPs, and guidelines for new businesses and other private sector enterprises engaged in those fields would be the [[Centre for Development of Advanced Computing]] (C-DAC).<ref>{{Cite news |last=Aryan |first=Aashish |date=2024-02-03 |title=Centre launches Digital India future LABS for R&D in automotive, compute, other areas |url=https://economictimes.indiatimes.com/tech/technology/govt-launches-digital-india-future-labs-for-rd-in-automotive-compute-other-areas/articleshow/107388863.cms |access-date=2024-02-10 |work=The Economic Times |issn=0013-0389}}</ref>

===Investments in the electronics sector===
Between April 2000 and March 2016, the electronics industry in India attracted $1.636 billion in foreign direct investment (FDI) (equity capital component only; this amount excludes funds remitted through the Reserve Bank of India's NRI schemes). This represents 0.57% of the total FDI equity inflow that the nation received during the same period, totaling $288.51 billion.<ref>{{cite web|url=http://dipp.nic.in/English/Publications/FDI_Statistics/2016/FDI_FactSheet_JanuaryFebruaryMarch2016.pdf|title=Fact Sheet on Foreign Direct Investment (FDI)|page=9|publisher=DIPP|access-date=2016-07-16|archive-url=https://web.archive.org/web/20160705010628/http://dipp.nic.in/English/Publications/FDI_Statistics/2016/FDI_FactSheet_JanuaryFebruaryMarch2016.pdf|archive-date=2016-07-05|url-status=dead}}</ref>

As of February 2016, the [[India Electronics and Semiconductor Association]] (IESA), a group that supports domestic production of computer hardware and electronic goods in India, reported that the government had received 156 proposals with investment commitments totaling INR1.14 lakh crore, or $16.8 billion, over the preceding 20 months.<ref>{{cite web|url=http://wap.business-standard.com/article/economy-policy/india-to-see-16-8-bn-investment-in-electronic-manufacturing-proposals-iesa-116020200378_1.html|title=India sees $16.8-bn electronic manufacturing proposals|date=3 February 2016 |publisher=Business Standard|access-date=2016-07-09}}</ref> As of May 2016, the government had approved 74 applications totaling ₹ 17,300 crores out of 195 investment proposals costing ₹ 1.21 lakh crore, while 27 projects had been rejected.<ref>{{cite web |title=Make in India: Centre clears Rs 17,300 crore worth investment proposals in electronics sector |url=http://telecom.economictimes.indiatimes.com/news/make-in-india-centre-clears-rs-17300-crore-worth-investment-proposals-in-electronics-sector/52329138 |access-date=2016-07-17 |publisher=The Economic Times}}</ref> As of June 2016, the Indian electronics industry anticipates US$56 billion in investments over the following four years to reach its 2020 export target of over US$80 billion.<ref>{{cite news|url=https://economictimes.indiatimes.com/news/economy/finance/india-expects-56-billion-investment-in-electronics-sector/articleshow/52548484.cms|title=India expects $56 billion investment in electronics sector|newspaper=The Economic Times |date=June 2, 2016|access-date=2016-07-13}}</ref> As of August 2016, 37 mobile manufacturing companies have invested in India during the previous year, resulting in the creation of 40,000 direct jobs and around 125,000 indirect jobs.<ref name="mob16" />

[[Foxconn]] has pledged investment worth $5&nbsp;billion to set up R&D and electronic manufacturing facilities in India within the next five years.<ref>{{cite web|url=https://www.forbes.com/sites/saritharai/2015/08/10/foxconn-could-make-india-its-next-manufacturing-base-after-china-investments-suggest/#5e483a9f3bb9|title=Foxconn Could Make India Its Next Manufacturing Base After China, Investments Suggest|work=Forbes|date=2015-08-10 |access-date=2016-07-11}}</ref> In January 2015, the [[Spice Global]] signed an MoU to set up a mobile phone manufacturing unit in [[Uttar Pradesh]] with an investment of {{INRConvert|5|b}}.<ref>{{cite web|title=Spice Group announces Rs 500 crore investment to build mobile manufacturing unit in UP|url=http://www.dnaindia.com/scitech/report-spice-group-announces-rs-500-crore-investment-to-build-mobile-manufacturing-unit-in-up-2056177 |publisher=DNA India|date=28 January 2015|access-date=2016-07-19}}</ref> In January 2015, [[Samsung]] contemplated a joint public-private initiative under which 10 "MSME-Samsung Technical Schools" will be established in India.<ref>{{cite web|title=MSME-Samsung Technical School to promote 'Make in India'|url=http://www.business-standard.com/content/b2b-manufacturing-industry/msme-samsung-technical-school-to-promote-make-in-india-115011500803_1.html|publisher=Business Standard|date=15 January 2015|access-date=2016-07-19}}</ref> In February, Samsung announced that it will manufacture the [[Samsung Z1]] in its plant in [[Noida]]. In addition to mobile phones, Samsung's factories in Noida and [[Sriperumbudur]] produce appliances and consumer electronics such as refrigerators, LED televisions, washing machines, and split air conditioners.<ref>{{cite web|title=Samsung launches new 4G phones, says still on top in India|url=http://indianexpress.com/article/business/business-others/samsung-launches-budget-4g-phones-says-still-on-top-in-india/|publisher=The Indian Express|date=17 February 2015|access-date=2016-07-19}}</ref> In February 2015, [[Huawei]] opened an R&D center in [[Bengaluru]] with an investment of {{currency|170|USD}} million.<ref>{{cite web|title=China's Huawei makes $170 million "Make in India" investment|url=http://in.reuters.com/article/huawei-tech-india-investment-idINKBN0L91JR20150205|archive-url=https://web.archive.org/web/20151222050712/http://in.reuters.com/article/huawei-tech-india-investment-idINKBN0L91JR20150205|url-status=dead|archive-date=December 22, 2015|publisher=Reuters|date=5 February 2015|access-date=2016-07-19}}</ref><ref>{{cite web|title=Huawei India opens new R&D campus in Bengaluru|url=http://www.deccanherald.com/content/458003/huawei-india-opens-rampd-campus.html |publisher=Deccan Herald|date=5 February 2015|access-date=2016-07-19}}</ref> It is also setting up a telecom hardware manufacturing plant in Chennai, which has been approved by the central government.<ref>{{cite web|url=http://articles.economictimes.indiatimes.com/2015-07-14/news/64406051_1_telecom-gear-huawei-india-security-clearance |archive-url=https://web.archive.org/web/20150914025425/http://articles.economictimes.indiatimes.com/2015-07-14/news/64406051_1_telecom-gear-huawei-india-security-clearance |url-status=dead |archive-date=September 14, 2015 |title=Make in India: Chinese telecom giant Huawei to set up a unit in Tamil Nadu - timesofindia-economictimes |publisher=Articles.economictimes.indiatimes.com|access-date=2016-07-19}}</ref> In February 2015, [[Xiaomi]] began initial talks with the Andhra Pradesh government to begin manufacturing smartphones at a [[Foxconn]]-run facility in [[Sri City]]. In early August 2015, the company announced that the first manufacturing unit was operational<ref>{{citation |url=http://indianexpress.com/article/technology/mobile-tabs/xiaomis-make-in-india-journey-starts-with-redmi-2-prime-in-andhra-pradesh/ |title=#MakeInIndia: Xiaomi launches Redmi 2 Prime which is made in Andhra Pradesh |publisher=The Indian Express |date=11 August 2015|access-date=2016-07-19}}</ref> within seven months after it was conceived.<ref>{{cite web|url=https://www.cnbc.com/2015/11/24/modis-make-in-india-wins-with-xiaomi-but-fdi-infrastructure-a-problem.html|title=Modi's Make in India win with Xiaomi|publisher=CNBC|access-date=2016-07-19}}</ref> In August 2015, [[Lenovo]] commenced operations at a smartphone manufacturing plant in Sriperumbudur, run by the Singapore-based contract manufacturer [[Flextronics]] International Limited. The plant has separate manufacturing lines for Lenovo and [[Motorola]], as well as separate quality assurance and product testing functions.<ref>{{cite news|url=http://economictimes.indiatimes.com/tech/hardware/make-in-india-lenovo-motorola-starts-making-smartphones-at-chennai-plant/articleshow/48525380.cms |title=Make In India: Lenovo-Motorola starts making smartphones at Chennai plant |newspaper=The Economic Times |date=24 August 2015 |publisher=Economictimes.indiatimes.com |access-date=2016-07-19 |last1=Guha |first1=Romit }}</ref><ref>{{cite web|url=http://www.livemint.com/Companies/3OQBWXtDNp6Zqj65YTnSaJ/Lenovo-follows-Xiaomi-as-Chinese-smartphone-makers-rush-to-I.html |title=Lenovo starts manufacturing smartphones in India |date=18 August 2015 |publisher=Livemint |access-date=2016-07-19}}</ref> Taiwan's major contract manufacturer, [[Wistron]], which makes devices for companies such as [[BlackBerry]], [[HTC]] and [[Motorola]], announced plans in November 2015 to manufacture the devices at a new factory in Noida, Uttar Pradesh.<ref>{{cite news|url=http://timesofindia.indiatimes.com/business/india-business/After-Foxconn-Taiwanese-contract-manufacturing-major-Wistron-to-Make-in-India/articleshow/49911470.cms|title=After Foxconn, Taiwanese contract manufacturing major Wistron to Make in India|work=The Times of India|date=24 November 2015 |access-date=2016-07-19}}</ref> In December 2015, [[Micromax Informatics|Micromax]] announced that it would set up three new manufacturing units in the Indian states of Rajasthan, Telangana and Andhra Pradesh at a cost of {{INRConvert|3|b}}. The plants may become operational in 2016, each employing 3,000-3,500 people.<ref>{{cite web|url=http://www.thehindubusinessline.com/info-tech/mobiles-tablets/make-in-india-micromax-to-invest-rs-300-cr/article7983330.ece|title=Make in India: Micromax to invest Rs 300 cr|date=13 December 2015 |publisher=The Hindu Business Line|access-date=2016-07-19}}</ref><ref>{{cite news|url=http://economictimes.indiatimes.com/tech/hardware/micromax-to-invest-rs-300-cr-for-make-in-india/articleshow/50159127.cms|title=Micromax to invest Rs 300 cr for 'Make in India' |newspaper=The Economic Times |date=14 December 2015 |publisher=timesofindia-economictimes|access-date=2016-07-19}}</ref> Phone manufacturer [[Vivo (technology company)|Vivo]] began manufacturing smartphones in December 2015 at a plant in Greater Noida, employing a workforce of 2,200 people.<ref>{{cite web|url=http://indianexpress.com/article/technology/tech-news-technology/vivo-mobiles-make-in-india-greater-noida-manufacturing-plant/|title=#MakeInIndia: Vivo inaugurates its first manufacturing unit in Greater Noida|date=22 December 2015 |work=The Indian Express|access-date=2016-07-19}}</ref>

The US-based personal computing hardware multinational [[Dell Technologies]], is looking to expand its capacity to export from India, at its laptop and computer manufacturing factory in Sriperumbudur, where it previously invested US$30 million.<ref name="ndtvdellin">{{cite web|url=http://m.gadgets.ndtv.com/laptops/news/dell-plans-to-expand-its-manufacturing-facility-in-india-626998|title=Dell Plans to Expand Its Manufacturing Facility in India|date=28 November 2014 |publisher=NDTV|access-date=2016-09-20}}</ref><ref>{{cite web|url=http://www.thehindu.com/todays-paper/tp-business/dell-to-set-up-unit-at-sriperumbudur/article3075715.ece|title=Dell to set up unit at Sriperumbudur|work=The Hindu|access-date=2016-09-20}}</ref><ref>{{cite news|url=https://economictimes.indiatimes.com/tech/hardware/with-right-rules-dell-ready-to-make-and-ship-from-india-cfo-thomas-w-sweet/articleshow/53715371.cms|title=With right rules, Dell ready to make and ship from India: CFO Thomas W Sweet|newspaper=The Economic Times|date=16 August 2016 |access-date=2016-09-20 |last1=Agarwal |first1=Surabhi }}</ref> Dell has plans of investing in the tunes of US$300 million through its venture fund arm Dell ventures, in Indian start-ups working in cloud computing, security and analytics as well as in the manufacturing of microprocessors and photo voltaic cells.<ref>{{cite web|url=http://m.gadgetsnow.com/tech-news/Dell-Ventures-to-invest-300-million-in-Indian-startups/articleshow/49946795.cms|title=Dell Ventures to invest $300 million in Indian startups|publisher=Gadgetsnow|access-date=2016-09-20}}</ref><ref>{{cite web|url=http://m.gadgetsnow.com/tech-news/Dell-to-increase-investment-in-India/articleshow/47331052.cms|title=Dell to increase investment in India|publisher=Gadgetsnow|access-date=2016-09-20}}</ref> Chennai-based Munoth Industries has partnered with China's Better Power for technological support as it aims to set up India's first Lithium-ion cell manufacturing plant in [[Tirupati]] in three phases by 2022 with an investment of {{INR}}799 crores. The first phase of the project will be complete by 2019 and the latter phases by 2022. The plant is expected to generate 1,700 job opportunities. The company has invested {{INR}}165 crore for the first phase, in which it would draw a capital investment of {{INR}}25 crore from the Central Government under the [[Make in India|Make In India]] scheme. The state government of [[Andhra Pradesh]] also  will provide fiscal and operational incentives, including subsidies on taxes and power costs. The company intends to sell finished lithium ion cells to mobile phone manufacturers and battery pack manufacturers in India.<ref>{{cite web|url=https://indianexpress.com/article/technology/tech-news-technology/indias-first-lithium-ion-cell-manufacturing-plant-will-be-ready-by-2019-5216624/|title=India's first Lithium-ion cell manufacturing plant will be ready by 2019|date=14 June 2018 |publisher=Indian Express|access-date=2018-06-15}}</ref> Together, MEL Systems and Services, Syrma SGS, O/E/N India, Sahasra Group, and Deki Electronics launched a new company called Awesense Five in February 2024. Its goal is to develop and produce industrial sensors in India, reducing reliance on imports and capturing the ₹7,000 crore domestic market, which includes the defence sector.<ref>{{Cite web |last=Simhan |first=T. E. Raja |date=2024-02-06 |title=Electronics industry veterans unite to form 'Awesense Five' for sensor manufacturing |url=https://www.thehindubusinessline.com/info-tech/electronics-industry-veterans-unite-to-form-awesense-five-for-sensor-manufacturing/article67813770.ece |access-date=2024-02-09 |website=BusinessLine |language=en}}</ref>

The first commercial [[supercapacitor]] production facility in India has been established by [[KELTRON]] in [[Kannur]]. [[Chief minister of Kerala|Chief Minister]] [[Pinarayi Vijayan]] officially opened it on October 1, 2024. The company has been collaborating on technology development with [[ISRO]], the [[Naval Materials Research Laboratory]], and the [[Centre for Materials for Electronics Technology]]. With an expenditure of ₹18 crore, the production facility's first phase has been established. In due time, the total investment will be ₹42 crore. The production capacity is approximately 2000 pieces per day.<ref>{{Cite web |last=Raghunath |first=Arjun |date=1 October 2024 |title=India's 'first' supercapacitor production facility opens in Kerala |url=https://www.deccanherald.com/india/kerala/indias-first-supercapacitor-production-facility-opens-in-kerala-3215506 |access-date=2024-10-02 |website=Deccan Herald |language=en}}</ref>

==Semiconductor industry==

With the advancements of the [[Internet of Things]] (IoT)<ref>{{cite web|url=http://techstory.in/iot-startups-in-india/|title=IoT Startups In India – Developing The Internet Of Things !|date=30 May 2016 |publisher=Techstory|access-date=2016-07-22}}</ref><ref>{{cite web|url=http://www.indianexpress.com/article/technology/tech-news-technology/internet-of-things-let-devices-do-the-talking/|title= Internet of Things: Let devices do the talking|date= 18 March 2016|publisher=The Indian Express|access-date=2016-07-22}}</ref><ref>{{cite web|url=http://www.businessinsider.in/How-the-Internet-of-Things-can-change-the-India-we-live-in-on-its-head/articleshow/48871985.cms|title=How the IoT can change the India we live on its head|publisher=Business Insider|access-date=2016-07-22}}</ref> has led to increased attention on Indian semiconductor industry and manufacturing, and its role in the country's development.

===Statistics and trends===
The fast growing electronics system design manufacturing ( ESDM ) industry in India has design capabilities with the number of units exceeding 120. As stated by the Department of Electronics and Information Technology (DeitY), approximately 2,000 chips are being designed in India every year with more than 20,000 engineers currently employed to work on various aspects of IC design and verification.<ref>{{cite news|url=https://timesofindia.indiatimes.com/trend-tracking/designing-chips-for-the-world/articleshow/60894286.cms|title=Designing chips for the world|newspaper=Times of India|date=October 2017 |access-date=2017-10-01}}</ref><ref>{{cite news |title=Semiconductor Industry in India |url=https://mosartlabs.com/president-of-vlsi-society-of-india-dr-satya-gupta-highlights-800-billion-semiconductor-opportunity-for-india/ |access-date=26 January 2025}}</ref>
According to a NOVONOUS report, the consumption of semiconductors in India, mostly import-based, is estimated to rise from $10.02 billion in 2013 to $52.58 billion by 2020 at a dynamic CAGR of 26.72%. The report estimates that the consumption of mobile devices will grow at a CAGR of 33.4% between 2013 and 2020, driving the share of mobile devices in semiconductor revenue up from 35.4% in 2013 to 50.7% in 2020. Moreover, the telecom segment is also expected to rise at a CAGR of 26.8% during 2013-20.  The information technology and office automation segment are estimated to grow at a CAGR of 18.2% in the same period. The consumer electronics segment also is expected to grow at a CAGR of 18.8% over the seven years.  The automotive electronics segment is expected to grow at a 30.5% CAGR from 2013 to 2020. The EDSM industry will also grow on the back of these high consumption-led industries.<ref>{{cite web|url=http://www.novonous.com/press-releases/novonous-release-semiconductor-market-india-2014-2020-report|title=NOVONOUS Release Semiconductor Market in India 2014 - 2020 Report|publisher=NOVONOUS|date=July 23, 2014|access-date=2016-07-09|archive-url=https://web.archive.org/web/20160815234737/http://www.novonous.com/press-releases/novonous-release-semiconductor-market-india-2014-2020-report|archive-date=August 15, 2016|url-status=dead}}</ref>  Currently, almost all the semiconductor demand is met by imports from countries like the USA, Japan, and Taiwan.  In the semiconductor sector, India has a significant human-capital pool which is currently concentrated in design, in the absence of an end-to-end manufacturing base. But the nascent ESDM segment in India is premised on competent domestic research by Indian universities and institutes across the entire semiconductor manufacturing value chain; namely, chip design and testing, embedded systems, process-related, EDA, MEMS and sensors, etc., which have contributed to a voluminous number of research publications.<ref>{{cite web|url=http://meity.gov.in/sites/upload_files/dit/files/Department%20of%20Electronics%20and%20IT’s%20Presentation%20regarding%20Fab.pdf|title=developing Semiconductor Manufacturing Capabilities in India|publisher=meity|access-date=2021-02-23}}</ref>

===Initiatives in the semiconductor industry===
As of 2016, the government allows 100% FDI in the Electronics system manufacturing and design (ESDM) sector through an automatic route to attract investments including from Original Equipment Manufacturers (OEMs) and Integrated Device Manufacturers (IDMs), and those relocating to India from other countries, in addition to EMC, MIPS and other incentives and schemes provided to the electronics sector.<ref>{{cite web|url=http://meity.gov.in/sites/upload_files/dit/files/Esdm_Policy.pdf|title=ESDM Policy|publisher=Meity|access-date=2021-02-23}}</ref>

The Department of Electronics and Information Technology (DeitY), in line with [[Skill India]]<ref>{{cite web|url=http://www.skilldevelopment.gov.in/assets/images/Skill%20India/policy%20booklet-%20Final.pdf|title=Policy on Skill India|publisher=Skill India|access-date=2016-07-10}}</ref> campaign has launched an {{INR}} 49 crore scheme for capacity building in ESDM.<ref>{{cite web|url=http://meity.gov.in/sites/upload_files/dit/files/Capacity |title=Capacity Building in Electronic Product Design and Production Technology |access-date=2021-02-23 }}</ref> In October 2015, [[Infineon Technologies]], a German semiconductor firm partnered with National Skill Development Corporation (NSDC)<ref>{{cite web|url=http://msde.gov.in/nationalskilldevelopmentcorporation.html|title=NSDC|publisher=Ministry of Skill Development and Entrepreneurship, Government of India|access-date=2016-07-13}}</ref> to enhance skill and manpower in semiconductor technology, aimed at boosting the ESDM ecosystem in India.<ref>{{cite web|url=https://www.telegraphindia.com/?mode=details&id=45572|title=Infineon Technologies and National Skill Development Council Sign Memorandum of Understanding to Skill Manpower for Semiconductors in India|publisher=The Telegraph India|access-date=2016-07-10|archive-url=https://web.archive.org/web/20160818123654/http://www.telegraphindia.com/external/display.jsp?mode=details&id=45572#.V4JVPTNw10w|archive-date=2016-08-18|url-status=live}}</ref>

The India Electronics & Semiconductor Association (IESA)<ref>{{cite web|url=http://www.iesaonline.org/index.html|title=Home page|publisher=IESA|access-date=2016-07-13|archive-url=https://web.archive.org/web/20160818170320/http://www.iesaonline.org/index.html|archive-date=2016-08-18|url-status=dead}}</ref> has announced a SPEED UP and SCALE-UP of its talent development initiative to be implemented through the Centre of Excellence with the Electronics Sector Skills Council of India (ESSCI) and an MoU with the Visvesvaraya Technological University (VTU) and the RV-VLSI Design Center to build human capital in the ESDM field.<ref>{{cite news|url=https://timesofindia.indiatimes.com/business/india-business/IESA-signs-MoUs-to-build-resource-base-for-design-led-electronics-manufacturing-in-India/articleshow/46122502.cms|title=IESA signs MoUs to build a resource base for design-led electronics manufacturing in India|work=The Times Of India|date=4 February 2015 |access-date=2016-07-10}}</ref> ESSCI, which has developed over 140 Qualification Packs (QP) / National Occupation Standards (NOS) across 14 sub-sectors of which Embedded System Design and VLSI are key domains absorbing engineers, established their first-ever Centre of Excellence (CoE) at BMS college of Engineering for VLSI and embedded system design.<ref>{{cite web|url=http://www.eeherald.com/section/news/owns20150901001a.html|title=CoE for VLSI and embedded system design at BMS Engineering College Bangalore|publisher=Electronics Engineering Herald|access-date=2016-08-25}}</ref>  IESA signed an MoU with Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) to encourage co-operation in technology and knowledge transfer and investment commitment to the domestic ESDM sector that can benefit both Indian and Taiwanese companies.<ref>{{cite web|url=http://www.eeherald.com/section/news/onws201503290001ba.html|title=IESA signs MoU with TEEMA|publisher=Electronics Engineering Herald|access-date=2016-08-25}}</ref> IESA also entered into a MoU with Singapore Semiconductor Industry Association (SSIA) in February 2015, with an objective to forge trade and technical cooperation tie-ups between the electronics and semiconductor industries of both the countries.<ref>{{cite news|url=https://timesofindia.indiatimes.com/city/lucknow/IESA-signs-MoU-with-SSIA-to-fortify-India-Singapore-electronic-industry-collaborations/articleshow/46190718.cms|title=IESA signs MoU with SSIA to fortify India-Singapore electronic industry collaborations|work=The Times Of India|date=12 February 2015 |access-date=2016-07-10}}</ref>

The Department of Electronics and Information Technology (DeitY) has established an Electronics Development Fund (EDF) managed by Canara Bank ( CANBANK Venture Capital Funds or CVCFL) to provide risk capital and to attract venture funds, angel funds and seed funds for incubating R&D and fostering the innovative environment in the sector.,<ref name="Times 131415"/><ref>{{cite web|url=http://meity.gov.in/esdm/edf|title=Electronics Development Fund|publisher=meity|archive-url=https://web.archive.org/web/20160708102507/http://deity.gov.in/esdm/edf|archive-date=2016-07-08|url-status=live|access-date=2021-02-23}}</ref> the establishment of "Fund of Funds for Start-ups" (FFS) approved by the union cabinet as part of the EDF for contribution to various alternative investment funds or daughter funds, registered with Securities and Exchange Board of India which would extend funding support to start-ups, in line with the Start-up India Action Plan unveiled by Government in January 2016, will be beneficial to the start-ups in the ESDM space, according to IESA.<ref>{{cite web|url=http://electronicsb2b.efytimes.com/industry-buzz/iesa-hails-govt-decision-pass-rs-10000-crore-corpus-fund-funds-start-ups/|title=IESA hails govt decision to pass Rs 10,000 crore corpus Fund of Funds for start-ups|publisher=electronicsB2B|access-date=2016-07-10|archive-url=https://web.archive.org/web/20160820100211/http://electronicsb2b.efytimes.com/industry-buzz/iesa-hails-govt-decision-pass-rs-10000-crore-corpus-fund-funds-start-ups/|archive-date=2016-08-20|url-status=dead}}</ref>

The National Centre for Flexible Electronics (NCFlexE) at [[IIT Kanpur]], the National Centre for Excellence in Technology for Internal Security at [[IIT Bombay]] and the Centre for Excellence for Internet of Things at [[NASSCOM]], Bengaluru has been set up to promote the development of national capability in ESDM.<ref name="Times 131415"/>

===Recent notable achievements===
In 2011, [[Hyderabad]] based semiconductor chip design services entity SoCtronics completed the first 28&nbsp;nm design chip to be developed in India.<ref>{{cite web|url=http://www.eeherald.com/section/news/Rnws201111012.html|title=SoCtronics tapeout first 28nm design from India|publisher=Electronics Engineering Herald|access-date=2016-08-25}}</ref> Bangalore-based Indian company Navika Electronics has designed [[Satellite navigation|GNSS]]/[[Global Positioning System|GPS]] [[System on a chip|SoC (System on Chip)]] chipsets based on [[ARM architecture|ARM core]] processors under its own brand name for portable applications like receiving/down conversion and amplification of GPS and Galileo signals.<ref>{{cite web|url=http://www.eeherald.com/section/news/owns20160530001.html|title=ISRO and Bangalore based Navika gets India GPS freedom|publisher=Electronics Engineering Herald|access-date=2016-08-25}}</ref>

The Centre for Nano Science and Engineering (CeNSE), [[Indian Institute of Science|IISc, Bengaluru]], in collaboration with KAS Tech, a Bengaluru-based electronics manufacturing company, has developed 'Ocean', a highly integrated and portable  chemical vapour depositor that can commercially produce various two dimensional materials including graphene, in an easy 'plug and grow' approach which can have various novel applications in the ESDM sector, for both academia and industry alike.<ref>{{cite web|url=http://iisc.researchmedia.center/article/reactor-produce-graphene-made-india/|title=A reactor to produce graphene, Made In India|publisher=Research media Center, IISC|access-date=2016-08-25|archive-url=https://web.archive.org/web/20170118101731/http://iisc.researchmedia.center/article/reactor-produce-graphene-made-india|archive-date=2017-01-18|url-status=dead}}</ref>

In what could be viewed as a breakthrough for the country's electric automobile programme as well as indigenous electronics manufacturing, the [[Indian Space Research Organization]] (ISRO) and the [[Automotive Research Association of India]] (ARAI) together have  developed and validated through tests, using ISRO's state of the art cell technology, a lithium-ion battery prototype for application in electric vehicles and looks forward to commercialising the technology through mass production by partnering with automotive companies. Currently India's lithium-ion battery requirements are completely met by import as there is no domestic manufacturing of these batteries. While the raw material for the batteries still has to be imported, the rest of the value chain can be synthesized domestically at a competitive cost, if the project clears all the barriers.<ref>{{cite web|url=http://www.financialexpress.com/industry/technology/homegrown-lithium-battery-to-power-indias-electric-vehicles/514977/|title=Good news: After satellites, 'desi' lithium batteries to power electric vehicles in India|publisher=Financial Express|access-date=2017-02-10}}</ref>
Researchers at the Indian Institute of Technology - Bombay (IIT-B), in a collaboration with ISRO's Semi-Conductor Labs (SCL), Chandigarh, have developed an indigenous Bipolar Junction Transistor (BJT) which can function with Bi-CMOS (Bipolar Complementary Metal Oxide Semiconductor). Analogue or mixed chips based on various digital Bi-CMOS technology with integrated analogue high frequency BJT based amplifiers are essential for IoT and space applications like high frequency communications as they reduce form factor, power consumption, weight and size dimensions and cost etc.<ref>{{cite web|url=https://researchmatters.in/article/made-india-transistor-can-make-india’s-iot-technology-reality|title=A made-in-India transistor that can make India's IoT technology a reality|publisher=researchmatters.in|access-date=2018-06-15}}</ref>

During the Digital India FutureLABS Summit 2024, technologies for a [[CMOS]]-based vision processing system, a Thermal [[Smart camera|Smart Camera]], and a [[Fleet management system|Fleet Management System]] were distributed to 12 industries as part of [[Ministry of Electronics and Information Technology]]'s InTranSE Program. A [[digital signal processor]] included inside the Thermal Smart Camera allows it to do a variety of [[AI]]-based [[analytics]]. Applications in smart cities, industry, defense, and healthcare are its main focus. With a potent on-board computing engine, the Industrial Vision Sensor iVIS 10GigE is a CMOS-based vision processing system designed to handle the demands of the upcoming industrial [[machine vision]] applications. The Fleet Management System tracks the position of vehicles and sends out notifications for a variety of situations, including reckless driving, [[overspeed]]ing, ignition, idling, and stopping. It will also help improve the dependability of public transportation services by reducing the occurrence of [[bus bunching]], as transit operators can employ operational techniques for headway reliability as a dynamic scheduling decision support tool.<ref>{{Cite web |date=2024-02-05 |title=Govt transfers 3 indigenously developed technologies to 12 businesses |url=https://www.moneycontrol.com/news/business/govt-transfers-3-indigenously-developed-technologies-to-12-businesses-12194251.html |access-date=2024-02-10 |website=Moneycontrol |language=en}}</ref>

===Investments in Semiconductor Industry in India===
In 2014, the ESDM industry was projected to see investment proposals worth {{INR}} 10,000 crores (USD $1.5 billion) over the next two years, along with five partially state-funded start-up incubation centres of the 250 planned by the industry body, as per IESA.<ref>{{cite web|url=http://www.livemint.com/Industry/LeDLPXutgljhhAVA26dUjJ/Make-in-India-will-benefit-electronics-manufacturing-Indust.html|title=Make in India will benefit electronics manufacturing:IESA|date=20 October 2014 |publisher=Livemint|access-date=2016-07-10}}</ref>

In February 2014, the union cabinet approved the setting up of these  fab proposals with the decision to extend incentives as follows:
* 25% subsidy on capital expenditure and tax reimbursement under M-SIPS Policy.
* Exemption of Basic Customs Duty (BCD) for non-covered capital items.
* 200% deduction on expenditure on R&D under Section 35(2AB) of the Income Tax Act.
* Investment-linked deductions under Section 35AD of the IT Act.
* Interest free loan of around {{INR}} 5,124 crore to each.<ref>{{cite web|url=http://pww.pib.nic.in/newsite/PrintRelease.aspx?relid=103681|title=Approval by cabinet to establish two Semiconductor Wafer Fabrication Manufacturing Facilities in India|publisher=Press Information Bureau, Government of India|access-date=2016-08-25}}{{Dead link|date=August 2019 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

Starting January 1, 2022, the government started taking applications under its incentive scheme in developing a full ecosystem for the chip manufacturing industry and expects at least a dozen semiconductor manufacturers to start setting up local factories in the next several years.<ref>{{cite web| url=https://www.bloomberg.com/news/articles/2021-12-22/india-sees-chip-makers-starting-local-manufacturing-in-2-3-years| title=India Sees Chipmakers Starting Local Production in 2-3 Years| work=Bloomberg| date=December 21, 2021}}</ref>

The [[Ministry of Finance (India)|Ministry of Finance]] has proposed a 71% increase in funding to [[₹]]13,104.50 [[crore]] for the manufacturing of chips and electronics in the [[2024 Union budget of India]].<ref>{{Cite news |last1=Aryan |first1=Aashish |last2=Lohchab |first2=Himanshi |date=2024-02-02 |title=Budget 2024: FM proposes 71% increase in outlay for chip, electronics manufacturing |url=https://economictimes.indiatimes.com/tech/technology/budget-2024-fm-proposes-71-increase-in-outlay-for-chip-electronics-manufacturing/articleshow/107365284.cms |access-date=2024-02-11 |work=The Economic Times |issn=0013-0389}}</ref>

In 2024, the [[Government of India]] has approved the establishment of four [[Semiconductor manufacturing|semiconductor manufacturing units]] in the country as part of the Semicon India Programme. Additionally, nine projects have received approval under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS). These initiatives are expected to generate approximately 15,710 jobs, significantly contributing to the growth of the semiconductor and electronics sectors in India.<ref>{{Cite web|url=https://pib.gov.in/PressReleasePage.aspx?PRID=2088268|title=Year End Review 2024 of Ministry of Electronics & Information Technology Part-1|website=pib.gov.in|accessdate=Sep 18, 2025}}</ref>

The [[Government of Uttar Pradesh|Uttar Pradesh government]] is actively working to establish the state as a prominent hub for semiconductor manufacturing. Currently, it has received four to five investment proposals amounting to ₹40,000 crore. This initiative coincides with the upcoming three-day Semicon India 2024 event, highlighting the state's commitment to advancing its capabilities in the semiconductor sector.<ref>{{Cite web|url=https://www.hindustantimes.com/cities/lucknow-news/uttar-pradesh-govt-bid-to-be-hub-of-semiconductor-units-101725974089113.html|title=Uttar Pradesh govt bid to be hub of semiconductor units|date=Sep 10, 2024|website=Hindustan Times|accessdate=Sep 18, 2025}}</ref>

====Investments in fabrication plants in India====
As of mid 2016, there were no operational commercial [[Semiconductor fabrication plant]]s in India.

The Centre of Excellence in Nanoelectronics (CEN), at the Indian Institute of Technology – Bombay, has a lab-like fab facility collaborated between IIT Bombay and IISc Bangalore that offers research in the design, fabrication and characterization of traditional CMOS Nano-electronic devices, Novel Material based devices (III-V Compound Semiconductor devices, Spintronics, Opto-electronics), Micro Electromechanical Systems (MEMS), NEMS, Bio-MEMS, polymer based devices and solar Photovoltaics to researchers across academia, industry and government laboratories, all over India. The center also offers support in device fabrication technologies using sophisticated equipment under the Indian Nano Users Program (INUP) and acts as a linchpin for developing innovative technologies that can be tweaked and commercialized for spurring the nano-industrial growth in India.<ref>{{cite web|url=http://www.cen.iitb.ac.in/cen/index.php|title=Home page of CEN|publisher=Centre of Excellence in Nanoelectronics|access-date=2016-07-10|archive-date=2024-08-16|archive-url=https://web.archive.org/web/20240816032226/http://cen.iitb.ac.in/cen/index.php|url-status=dead}}</ref>

A foundry for producing GaN nano material proposed to be extended around the existing facility for producing gallium nitride transistors, at the IISc's Centre for Nano Science and Engineering (CeNSE), Bangalore, at a cost of {{INR}} 3000 crore has received preliminary approval from the central government.<ref>{{cite web|url=https://indianexpress.com/article/education/iisc-to-get-rs-3000-crore-foundry-to-produce-wonder-nano-material-4741048/|title=IISc to get Rs 3,000-crore foundry to produce 'wonder' nano material|date=8 July 2017 |publisher=Indian Express|access-date=2018-06-15}}</ref>

* Gujarat is expected to be home to one of the semiconductor wafer fabrication manufacturing facility by late 2017 in [[Prantij]] of [[Sabarkantha district]]. To be set up by anchor partner Hindustan Semiconductor Manufacturing Corporation (HSMC) and copartners STMicroelectronics N.V. (France/Italy) and Silterra (Malaysia), it will employ a workforce of over 25,000 including 4,000 direct employees. The group will establish two manufacturing units at an expense of over {{INR}} 29,000 crore or about US$4.5 billion, each capable of producing 20,000 wafers per month. Technology nodes currently proposed by this consortium are 90, 65 and 45&nbsp;nm nodes in Phase I and 45, 28 and 22&nbsp;nm nodes in Phase II.<ref>{{cite news|url=https://timesofindia.indiatimes.com/city/ahmedabad/Prantij-to-house-states-1st-semiconductor-wafer-unit/articleshow/40020263.cms|title=Prantij to house state's 1st semiconductor wafer unit|work=The Times of India|date=13 August 2014 |access-date=2016-07-10}}</ref> In March 2016, HSMC received ₹700 crore worth of seed investment for the project from Mumbai-based private equity fund Next Orbit Ventures (NOV).<ref name=Amdsupport>{{cite web|url=http://m.thehindubusinessline.com/info-tech/amd-backs-chip-manufacturing-in-india/article8467511.ece|title=AMD backs chip manufacturing in India|date=12 April 2016 |publisher=The Hindu Businessline|access-date=2016-08-26}}</ref>
* Another consortium, led by Jaiprakash Associates in collaboration with [[IBM]] and [[Tower Semiconductor]], proposed to build a wafer fab in [[Greater Noida]] at an expense of over {{INR}}34,000 crore or about US$5 billion, capable of producing 40,000 300&nbsp;mm-diameter wafers per month in an advanced CMOS with 90, 65 and 45&nbsp;nm CMOS nodes initially before gradually switching over to 28&nbsp;nm and 22&nbsp;nm CMOS nodes in later phases. As of April 2016, the fate of the project remains uncertain as to the debt-ridden lead partner, JPA, exited the project, citing the commercial infeasibility of the project.<ref>{{cite web |last=Clarke |first=Peter |date=21 April 2016 |title=Lead Partner Pulls Out of India Fab Plan |url=http://www.eetimes.com/document.asp?doc_id=1329516 |access-date=2016-07-11 |publisher=EE Times}}</ref> In 2022, International Semiconductor Consortium (ISMC), a joint venture between [[Abu Dhabi]]-based Next Orbit Ventures and Tower Semiconductor, announced that it had signed a memorandum of understanding (MoU) with the [[Government of Karnataka]] to set up a [[65 nm process|65-nanometer]] analog semiconductor fabrication unit.<ref>{{Cite web |last=Jain |first=Rounak |date=2 May 2022 |title=Semiconductor manufacturing in India gets a boost with ISMC's proposed $3 billion plant in Karnataka |url=https://www.businessinsider.in/tech/news/semiconductor-manufacturing-in-india-gets-a-boost-with-ismcs-proposed-3-billion-plant-in-karnataka/articleshow/91254811.cms |access-date=2022-05-02 |website=Business Insider}}</ref><ref name=":0">{{Cite web |last= |date=2 May 2022 |title=ISMC to invest $3 billion in Karnataka to set up India's first chip-making plant |url=https://www.financialexpress.com/industry/ismc-to-invest-3-billion-in-karnataka-to-set-up-indias-first-chip-making-plant/2509657/ |access-date=2022-05-02 |website=Financialexpress |language=en}}</ref> ISMC will invest $3 billion to set up the plant.<ref name=":0" /> Tower Semiconductor has put in a fresh proposal for $8 billion chip production facility in 2024.<ref>{{Cite web |last=Barik |first=Soumyarendra |date=2024-02-11 |title=Israeli chipmaker Tower closes in on $8 billion fabrication plant in India |url=https://indianexpress.com/article/business/israeli-chipmaker-tower-closes-in-on-8-billion-fabrication-plant-in-india-9155159/ |access-date=2024-02-11 |website=The Indian Express |language=en}}</ref> On 5 September 2024, [[Government of Maharashtra]] approved an investment proposal of ₹83,947 crore ($10 billion ) for a joint venture between Tower Semiconductor and the [[Adani Group]] that will establish chip manufacturing plant in [[Panvel]]. In the first phase, the plant's capacity will be 40,000 wafers per month (WPM), and it will eventually be expanded to 80,000 WPM.<ref>{{Cite news |last=Shukla |first=Prateek |date=6 September 2024 |title=Tower-Adani JV to set up $10 bn semiconductor unit in Maharashtra: Fadnavis |url=https://www.business-standard.com/industry/news/tower-adani-jv-to-set-up-10-bn-semiconductor-unit-in-maharashtra-fadnavis-124090600160_1.html |access-date=5 October 2024 |work=Business Standard}}</ref>
* [[SunEdison]] and Adani Group have signed an MoU to build the largest vertically integrated solar photovoltaic fab facility in India with an investment of up to US$4 billion in Gujarat's Mundra, creating 4,500 direct jobs and more than 15,000 indirect jobs by integrating all aspects of solar panel production on site, including polysilicon refining and ingot, cell, and module production.<ref>{{cite web|url=http://www.eeherald.com/section/news/onws20150125001k.html|title=Solar PV semiconductor fab in Gujarat, India by SunEdison and Adani|publisher= Electronics Engineering Herald|access-date=2016-08-25}}</ref>
* The U.S.-based company called Cricket Semiconductor has evinced interest in investing US$1 billion in building an analog integrated-circuit and power supply integrated-circuit specific semiconductor fab in Madhya Pradesh.<ref>{{cite web|url=http://www.eeherald.com/section/news/onws201502150001.html|title=India's first analog semiconductor fab in Madhya Pradesh|publisher=Electronics Engineering Herald Magazine|access-date=2016-07-11}}</ref><ref>{{cite web|url=http://meity.gov.in/sites/upload_files/dit/files/fab_policy_2015.pdf|title=Analog Semiconductor Fabrication Investment Policy of Madhya Pradesh 2015|publisher=MeitY|access-date=2021-02-23}}</ref>
* With a $2.75 billion investment, [[Micron Technology]] began construction of its semiconductor manufacturing plant in Gujarat, in September 2023.<ref>{{Cite news |last1=Agarwal |first1=Surabhi |last2=P |first2=Suraksha |date=2023-09-20 |title=Micron set to break ground for chip unit |url=https://economictimes.indiatimes.com/tech/technology/micron-set-to-break-ground-for-chip-unit/articleshow/103791649.cms |access-date=2024-02-11 |work=The Economic Times |issn=0013-0389}}</ref>
* The partnership between [[HCLTech]] and [[Foxconn]] for an OSAT (outsourced semiconductor assembly and testing) plant was announced in January 2024. Foxconn, which invested $37.2 million, will own 40% of the company.<ref>{{Cite web |last=Das |first=Gulveen Aulakh,Shouvik |date=2024-01-17 |title=Foxconn, HCL announce JV to set up semiconductor OSAT in India |url=https://www.livemint.com/companies/news/foxconn-hcl-announce-jv-to-set-up-semiconductor-osat-in-india-11705505623112.html |access-date=2024-02-11 |website=mint |language=en}}</ref> With HCL Group, Foxconn set aside ₹1,200 crore as a down payment for the building of a chip facility in India. It released a call for bids in February 2024 for construction of chip assembly and testing plant.<ref>{{Cite web |last= |first= |date=2024-02-06 |title=Foxconn invites bids for construction of chip plant in India |url=https://telanganatoday.com/foxconn-invites-bids-for-construction-of-chip-plant-in-india |access-date=2024-02-09 |website=Telangana Today |language=en-US}}</ref>
* [[Murugappa Group]] would invest $791 million over a five-year period to enter the semiconductor assembly and testing business.<ref>{{Cite web |last=Balachandar |first=G. |date=2023-11-22 |title=Murugappa Group plans $791 million foray into semiconductor business |url=https://www.thehindubusinessline.com/info-tech/murugappa-group-plans-791-million-foray-into-semiconductor-business/article67562171.ece |access-date=2024-02-11 |website=BusinessLine |language=en}}</ref>
* To establish a semiconductor assembly and testing facility in India, [[CG Power and Industrial Solutions]] has partnered with [[Renesas Electronics|Renesas Electronics America]] and Stars Microelectronics, based in Thailand.  As equity capital of the joint venture, CG Power, Renesas, and Stars will invest up to $205 million, $15 million, and $2 million in one or more tranches. This amounts to about 92.34 percent, 6.76 percent, and 0.9 percent, respectively.<ref>{{Cite web |date=2024-02-10 |title=CG Power-led venture to set up semiconductor facility in India |url=https://indianexpress.com/article/business/cg-power-led-venture-to-set-up-semiconductor-facility-in-india-9153873/ |access-date=2024-02-11 |website=The Indian Express |language=en}}</ref> Chips for consumer, industrial, automotive, and power applications will be produced with a daily capacity of 15 million units.<ref name=":1">{{Cite news |date=2024-02-29 |title=Government approves 3 semiconductor units, Tata Group to set up two |url=https://timesofindia.indiatimes.com/gadgets-news/government-approves-3-semiconductor-units-in-india-tata-group-to-set-up-two/articleshow/108109506.cms |access-date=2024-03-02 |work=The Times of India |issn=0971-8257}}</ref>
* At a cost of ₹91,000 crore, Tata Electronics and [[Powerchip]] plan to establish a semiconductor fabrication facility in [[Dholera]]. It is expected to be able to process 50,000 wafer starts per month (WSPM). Using 28&nbsp;nm technology, this facility will manufacture power management ICs, display drivers, micro-controllers, and high-performance computing chips for AI, automotive, computing and data storage, and wireless communication technologies.<ref>{{Cite web |last=Trueman |first=Charlotte |date=27 September 2024 |title=Tata Electronics and PSMC to build India's first semiconductor fab |url=https://www.datacenterdynamics.com/en/news/tata-electronics-and-psmc-to-build-indias-first-semiconductor-fab/ |access-date=1 October 2024 |website=Data Centre Dynamics}}</ref> Tata Electronic and [[Synopsys]] to work together at Dholera semiconductor fabrication facility. Tata Electronics plans to leverage Synopsys' foundry design platform to expedite the process of customizing semiconductor products for its clientele. The two firms will also work together in the fields of data analytics, computer-aided design, factory automation, product design kits that Synopsys will offer to Tata Electronics, and the creation of intellectual property for the chip fab.<ref name=":1" /><ref>{{Cite news |last=Das |first=Shouvik |date=25 June 2024 |title=Tata Electronics signs tech pact with US chip firm for Dholera fabrication plant |url=https://www.livemint.com/companies/tata-electronics-signs-tech-pact-with-us-chip-firm-for-dholera-fabrication-plant-11719323926382.html |access-date=30 June 2024 |work=mint}}</ref> [[Tokyo Electron]] will equip Tata Electronics workers and provide training so that the company can meet its 2026 chip manufacturing target on schedule. The partnership covers both back-end packaging technologies and front-end manufacturing. Additionally, Tokyo Electron will fund continuous R&D and enhancement projects.<ref>{{Cite web |last=Aulakh |first=Gulveen |date=9 September 2024 |title=Tokyo Electron Ltd to supply equipment to Tata Electronics, train workforce at India's first fab |url=https://www.livemint.com/companies/news/tokyo-electron-tata-electronics-chip-fabrication-unit-semiconductor-fab-facility-ai-11725896297854.html |access-date=11 September 2024 |website=mint}}</ref>
* In [[Morigaon]], [[Tata Semiconductor Assembly and Test]] intends to establish a semiconductor plant. ₹27,000 crore will be needed to establish this facility. Chips for use in automotive, consumer electronics, telecom, mobile phones, and electric vehicles will be assembled with a capacity of 48 million units per day.<ref name=":1" /> The [[Jagiroad]] plant will become operational from 2025.<ref>{{Cite web |last=Singal |first=Nidhi |date=2024-08-11 |title=Tata Electronics Bhoomi Poojan for semiconductor assembly plant in Assam; operations in 2025 |url=https://www.fortuneindia.com/enterprise/tata-electronics-bhoomi-poojan-for-semiconductor-assembly-plant-in-assam-operations-in-2025/117902 |access-date=2024-08-04 |website=www.fortuneindia.com |language=en}}</ref> 
* A group of European businesses and RRP Electronics have partnered to establish an Outsourced Semiconductor Assembly and Testing (OSAT) facility in Maharashtra. On 23 March 2024, it intends to lay the cornerstone of its new 25,000 square foot facility.<ref>{{Cite web |last=Iyengar |first=Suresh P. |date=2024-03-17 |title=RRP Electronics to set up first semiconductor plant in Maharashtra |url=https://www.thehindubusinessline.com/info-tech/rrp-electronics-to-set-up-first-semiconductor-plant-in-maharashtra/article67961569.ece |access-date=2024-03-18 |website=BusinessLine |language=en}}</ref>
* The Indian government approved the construction of the ₹3,307 crore [[Kaynes Technology]] ATMP unit in Gujarat on September 2, 2024. The facility would have a daily production capacity of 6.3 million chips.<ref>{{Cite web |last=Mishra |first=Ashutosh |date=2 September 2024 |title=Cabinet approves Kaynes chip assembly, packaging unit worth Rs 3,307 crore |url=https://www.business-standard.com/industry/news/cabinet-approves-kaynes-chip-assembly-packaging-unit-worth-rs-3-307-crore-124090200930_1.html |access-date=4 September 2024 |website=Business Standard}}</ref> In addition, [[Kaynes SemiCon]] is investing ₹5,000 crore to develop an OSAT plant in [[Sanand]].<ref>{{Cite news |last=P |first=Suraksha |date=2024-03-12 |title=Kaynes SemiCon OSAT to move from Telangana to Gujarat: Sources |url=https://economictimes.indiatimes.com/tech/technology/kaynes-semicon-osat-to-move-from-telangana-to-gujarat-sources/articleshow/108402836.cms?from=mdr |access-date=2024-09-04 |work=The Economic Times |issn=0013-0389}}</ref>

====Miscellaneous Investments in Semiconductor Industry====
* [[Cyient]] Ltd. signed an agreement to acquire a 74 per cent equity stake in Rangsons Electronics Pvt Ltd, a Mysuru-based ESDM servicing firm.<ref>{{cite web|url=http://m.thehindu.com/business/Industry/cyient-to-buy-74-stake-in-rangsons-electronics/article6749192.ece|title= Cyient to buy 74 % stake in Rangsons Electronics|work=The Hindu|access-date=2016-07-11}}</ref>
* A US-based product engineering firm, [[Aricent]], acquired Bengaluru-based chip design services company SmartPlay US$180 million.<ref>{{cite web|url=http://www.livemint.com/Companies/xDGSOQHUrETM6CcVFA5NXP/Aricent-acquires-SmartPlay-for-180-million.html|title=Aricent acquires SmartPlay for $180 million - Livemint|publisher=Livemint|access-date=2016-07-11}}</ref>
* [[Capgemini Engineering|Altran Technologies SA]], a French technology consulting multinational, agreed to acquire SiConTech, a Bengaluru-based start-up that designs semiconductor chips.<ref>{{cite web|url=http://www.eeherald.com/section/news/owns20150729001.html|title=Altran acquires India based VLSI design company SiConTech|publisher=Electronics Engineering Herald Magazine|access-date=2016-07-11}}</ref>
* In August 2013, [[AMD]] opened a new ESDM design centre in [[HITEC City]], Hyderabad, in addition to its existing design centre in [[Bengaluru]].<ref>{{cite web|url=http://www.eeherald.com/section/news/onws2013082001a.html|title=AMD opens design centre in Hyderabad, India|publisher= Electronics Engineering Herald|access-date=2016-08-25}}</ref>
* The world's largest processor intellectual property technology vendor [[ARM Holdings|ARM]] expanded its VLSI operations out of Bengaluru as it set up a new Design Centre at Noida, Uttar Pradesh for working on planar and FinFET CMOS technologies under its physical IP division.<ref>{{cite web|url=http://www.eeherald.com/section/news/onws20131013002.html|title=ARM opens design centre in Noida, UP|publisher= Electronics Engineering Herald|access-date=2016-08-25}}</ref>
* Taiwan based Mobile phone chipmaker [[Mediatek]] opened a VLSI and embedded software design center at Techpark in Bangalore with a plan to invest $200 million to employ up to 500 engineers over the following few years for working on mobile communications, wireless connectivity & home entertainment segments.<ref>{{cite web|url=http://wew.eeherald.com/section/news/onws201408210001a.html|title=Mobile phone chipmaker Mediatek expands in India|publisher=Electronics Engineering Herald|access-date=2016-08-25}}{{Dead link|date=August 2019 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

Critics and detractors of the fab projects currently underway in India, in different conceptual phases, doubt the prospects of success of these capital-intensive projects, pointing to various reasons like marginal profitability due to overcapacity of output in a saturated and fiercely competed fab market, noncompetence of these particular fabs in terms of cost and performance related to the dimensions of CMOS nodes even in attracting domestic end-use industries which have access to the more sophisticated fabs outside the country, cost prohibitive maintenance and upgrades needed every few years to weather obsolescence, nonavailability of domestically procurable semiconductor-grade materials in absence of complementing ancillary manufacturing industries and other resource-intensive strings attached to such projects, including land acquisition requirements, necessity uninterrupted deionised water and power supplies, supply of critical gases such as nitrogen and argon, absence of skilled labour force and drain of an already inadequate number of experienced domestic talent pool in electronic engineering and R&D possessing expertise to overcome the barriers of related sensitive technologies for mass production towards other attractive sectors in absence of a major Indian player in the electronics sector, especially in a developing country like India, which is still grappling with infrastructural bottlenecks.<ref>{{cite web|url=http://timesofindia.indiatimes.com/business/india-business/Does-India-really-need-a-5bn-semiconductor-unit/articleshow/48151513.cms?mobile=no#_ga=1.107637570.1745289644.1450296943|title= Does India really need a $5bn semiconductor unit?|author=Vinod Dham|publisher=Times Of India, India Times, The Economic Times|access-date=2016-07-11}}</ref><ref>{{cite web|url=https://www.eetimes.com/document.asp?doc_id=1333053|title=Semiconductor fab closures on the rise|author=McGrath Dylan|access-date=2018-06-15}}</ref>

However, the endorsers of the fab projects, such as AMD, which partnered with HSMC for the fab project in Gujarat, stress the strategic need of developing the fabs as part of an end-to-end electronics manufacturing base in India which imports billions of dollars' worth of even lower-end semiconductor nodes of 90&nbsp;nm and above each year.<ref name="Amdsupport"/>
<ref>{{cite web|url=https://www.supplychainbrain.com/blogs/1-think-tank/post/32266-in-electronics-india-aims-to-become-a-factory-for-the-world |title=In Electronics, India Aims to Become a 'Factory for the World |publisher=Supply Chain Brain |access-date=2021-01-28}}</ref>
Relevant circles within India have been advocating for investment by the central government with a long term strategic vision in the revolutionising fields of Gallium Nitride (GaN) and Mercury Cadmium Telluride (HgCdTe) based non silica semiconductor foundry and fab because of their wide ranged use like High Electron Mobility Transistor (HEMT) made from GaN in power electronics both for civilian and military applications which can switch at high speed and can handle high power and high temperature without needing any cooling and HgCdTe based high quality sensors for military space requirements.<ref>{{cite web|url=https://www.deccanherald.com/content/663415/dont-miss-bus-semiconductors.html|title=Don't miss bus on new semiconductors|author=Saurav Jha|access-date=2018-06-15}}</ref>

==See also==
{{portal|India|Electronics|Technology}} 
* [[Economy of India]]
* [[Foreign Direct Investment in India]]
* [[Standup India]]
* [[Make in India]]
* [[Digital India]]
* [[Skill India]]
* [[Automotive industry in India]]
* [[Semiconductor industry in Taiwan]]
* [[Semiconductor industry in China]]
* [[List of semiconductor companies in the United States]]

==References==
{{Reflist|3}}

{{Economy of India}}
{{Electronics industry in India}}

[[Category:Electronics industry in India]]
[[Category:Semiconductor industry by country]]
[[Category:Semiconductors]]
[[Category:Manufacturing in India]]