India Semiconductor
India’s rapidly expanding semiconductor sector presents major opportunities for U.S. companies in equipment, materials, chip design, assembly, testing, and packaging. Driven by government initiatives, technological advancements, and increasing demand from various sectors, India’s semiconductor market is valued at $52 billion in 2024-25. With deepening U.S.–India collaboration, American firms are well positioned to export solutions, strengthen supply chains, and build long-term partnerships in one of the world’s fastest-growing semiconductor markets.
Strategic Partnership and Key Investment Hubs
The United States and India are strengthening their strategic partnership through collaborations aimed at advancing semiconductor technology. This cooperation brings together governments, academia, and industry to enhance research, innovation, and manufacturing capacity in the sector. With a shared focus on secure and resilient supply chains, both nations emphasize the use of trusted vendors and sustainable practices. The partnership also aims to build reliable global linkages, ensuring long-term growth and stability in the semiconductor ecosystem.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has also recently approved four new semiconductor projects at Odisha, Punjab and Andhra Pradesh under the India Semiconductor Mission (ISM). This brings the total number of ISM-approved projects to ten across six states, representing a cumulative investment of nearly $19 billion. With the rising demand for semiconductors across telecom, automotive, data centers, consumer electronics, and industrial electronics, the development of these facilities in India could open significant export opportunities for U.S. suppliers of semiconductor equipment, tools, and materials.
The establishment of a greenfield semiconductor hub in Assam is marking a significant step toward strengthening the global semiconductor ecosystem. The new facility will primarily focus on assembling and testing semiconductor chips, catering to the rapidly growing demand across a wide range of industries such as automotive, mobile devices, artificial intelligence (AI), consumer electronics, and other critical technology-driven sectors. This development is expected to not only boost the local economy but also create new export opportunities for U.S. manufacturers from the related domain.
At the same time, Gujarat is rapidly emerging as one of India’s most prominent semiconductor packaging and testing hubs. Several leading technology firms have announced large-scale investments in the state, particularly in Sanand, near Ahmedabad, which is becoming a focal point for advanced semiconductor infrastructure. A major global company is setting up a state-of-the-art Assembly, Testing, Marking, and Packaging (ATMP) facility, while another tech player is investing in an Outsourced Semiconductor Assembly and Test (OSAT) unit in the region.
States such as Tamil Nadu, Karnataka, Telangana, and Uttar Pradesh are also actively working as key players in the semiconductor manufacturing and assembly sector within India’s growing semiconductor industry.
U.S. exports of silicon-based chips, which are not yet produced on a large scale in India due to limited fabrication capacity, can play a crucial role in meeting the demand for these components. In addition to traditional semiconductor products, emerging technologies such as 5G and quantum computing present new growth opportunities. As India builds its R&D and design capabilities, it is becoming an increasingly strategic partner for the United States in high-tech manufacturing.
To learn more about India’s rapidly expanding semiconductor sector, contact the U.S. Commercial Service in India (CS India). CS India offers customized solutions to help U.S. businesses in the Indian market. For more information regarding upcoming events and opportunities in this sector, U.S. firms can contact the U.S. Commercial Service India team for the ICT sector or reach out to your nearest local U.S. Commercial Service office in the United States.