India should target to build USD 120-USD 150 billion semiconductor value chain by 2035: NITI Aayog

Business To Business, New Delhi, 31^st May, 2026:   A new report by NITI Aayog has recommended that India aim to build a USD 120-150 billion semiconductor value chain by 2035, arguing that the country should pursue a strategy focused on leadership and strategic self-reliance rather than merely participating in the global semiconductor industry.
The report, titled Future of India's Semiconductor Industry, says India should develop a distinct path that leverages its strengths and positions it as an indispensable player in the global electronics ecosystem.
Key recommendations
1. Build a USD 120-150 billion semiconductor ecosystem
The report envisions a comprehensive semiconductor value chain covering:

• Chip design.
• Fabrication and packaging.
• Testing and assembly.
• Equipment and materials.
• Semiconductor-enabled electronics manufacturing.

• Reduce risks for private investors.
• Improve project viability.
• Attract long-term domestic and foreign capital.
• Build investor confidence in large-scale semiconductor projects.

• Identify niche areas where it can achieve global leadership.
• Strengthen domestic capabilities across the value chain.
• Enhance technological self-sufficiency.
• Become a critical and reliable partner in global semiconductor supply chains.

• Smartphones.
• Computers and data centres.
• Electric vehicles.
• Telecommunications equipment.
• Defence systems.
• Artificial intelligence applications.
• Consumer electronics.

• Financial incentives under the India Semiconductor Mission.
• Support for chip fabrication and packaging facilities.
• Investments by companies such as Tata Electronics.
• New semiconductor projects, including the facility being developed at Jagiroad.