India’s Semiconductor Growth Depends on a Strong Domestic Supply Chain
News: A JM Financial report says India’s ambition to capture around 25% of global semiconductor demand by 2032 depends on building a robust domestic supply chain, technical talent, and supporting manufacturing capacity, not just fabrication plants.
Projects approved under Phase 1 of the India Semiconductor Mission will require capital equipment worth USD 12-13 billion.
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.
Source: Logistics Insider
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