NITI Aayog: India Needs Up to $180B to Build a Global Chip Hub

India will require cumulative investments of $135–180 billion over the next decade to build a globally competitive semiconductor ecosystem, according to a recent report by NITI Aayog.

The report, Future of India’s Semiconductor Industry, estimates that substantial investments will be needed across the semiconductor value chain, including chip design, fabrication, advanced packaging, materials, and supporting infrastructure.

To accelerate industry growth and attract private investment, the report recommends that the government contribute at least one-third of the total funding requirement. Such support would help reduce investment risks, encourage large-scale project development, and strengthen investor confidence in the capital-intensive sector.

The report also highlights that achieving global competitiveness in semiconductors requires extensive international collaboration, given the industry's complexity, scale, and significant capital requirements. It stresses the importance of building long-term global partnerships to create a resilient and integrated semiconductor ecosystem.

The recommendations come as India intensifies efforts to expand domestic semiconductor manufacturing and establish itself as a key player in the global electronics supply chain through policy initiatives, financial incentives, and strategic international collaborations.

News by Rahul Yelligetti.