Domestic Supply Chain Key to India’s Semiconductor Growth Ambitions

The report identifies gaps including a thin local vendor ecosystem for components and materials, underdeveloped advanced packaging infrastructure, and limited domestic semiconductor design capability, an area ISM 2.0 is meant to address while ISM 3.0 remains under development. India’s semiconductor market is projected to reach USD 110-120 billion by 2030, within a global market expanding from USD 775 billion in 2024 to USD 1.6 trillion by 2030.

For logistics and supply-chain providers eyeing the semiconductor sector, the report is a reminder that fab announcements alone will not generate demand. Domestic supplier ecosystems, specialised packaging capacity, and skilled logistics handling still need to be built out before India’s chip ambitions translate into sustained freight and warehousing volumes.