NITI Aayog Estimates $135–180 Billion Investment Need for India’s Semiconductor Ecosystem by 2035.

India will need cumulative investments of $135–180 billion over the next decade to develop a globally competitive semiconductor ecosystem, according to a report released by NITI Aayog recently.

The report, titled Future of India’s Semiconductor Industry, said the investment would be required across the semiconductor value chain, including chip design, fabrication, advanced packaging, materials and supporting infrastructure.

To accelerate the sector's growth and attract private capital, the report recommended that the government commit at least one-third of the total investment requirement. Such support would help de-risk large-scale projects and provide long-term confidence to investors entering the capital-intensive industry.

Highlighting the challenges of building a semiconductor ecosystem, the report noted that no country can achieve global competitiveness in isolation due to the industry's scale, complexity and high capital requirements. It emphasized the need for deep and sustained international partnerships to develop resilient and globally integrated semiconductor capabilities.

The findings come as India steps up efforts to strengthen domestic semiconductor manufacturing and position itself as a key player in the global electronics supply chain through a mix of policy support, incentives and strategic collaborations.