india's $10b chip plan: execution phase begins
New Delhi, Thursday, 24 July 2025.
India’s ambitious $10 billion semiconductor incentive program is moving from planning to action in 2025. This initiative aims to transform India into a major hub for chip manufacturing. The program has already approved high-impact projects in the first half of 2025. These projects are expected to draw over $15 billion in investments during the second half of the year. State governments are facilitating this shift, allocating land and resources. The initiative focuses on strategic areas like analog, power semiconductors, and OSAT, potentially creating thousands of jobs.
investment prospects in semiconductor manufacturing
India’s appeal as a complementary production partner stems from its democratic stability, large domestic market, and robust engineering talent [1]. This makes the country an attractive destination for semiconductor investments. Indian companies are also increasing their production of high-precision tooling and automation equipment for semiconductor manufacturing [1]. A significant portion, over 80%, of critical semiconductor-grade materials are currently imported, indicating potential opportunities for local manufacturing and supply chain development [1]. The Indian government is striving for a ‘Developed India by 2047,’ targeting a GDP of $30 trillion [3].
adani group’s $10 billion investment
The Adani Group, in collaboration with Israel’s Tower Semiconductor, plans to invest $10 billion to establish a chip manufacturing plant near Mumbai [2]. The facility’s first phase is projected to produce 40,000 wafers, followed by 80,000 wafers in the second phase [2]. This investment highlights the growing confidence in India’s semiconductor ecosystem. The project could further stimulate the Indian stock market, particularly for companies involved in semiconductor manufacturing and related technologies [GPT].
government initiatives and talent acquisition
The Indian government is actively promoting programs such as ‘Make in India,’ ‘Digital India,’ and ‘Startup India’ to attract tech talent [3]. These initiatives aim to reverse the brain drain and leverage the skills of Indian-origin professionals [3]. As of 2024, a substantial number of Silicon Valley engineers and tech company CEOs were of Indian origin [3]. The government’s focus on attracting skilled workers back home is expected to boost the semiconductor industry and overall economic growth [3].
market growth and stock performance
The Indian semiconductor market is projected to reach $100.2 billion by 2032, a significant increase from $34.3 billion in 2023 [7]. This growth trajectory presents substantial opportunities for investors in semiconductor stocks. Key factors influencing stock prices include global demand, supply chain dynamics, government policies, and technological advancements [7]. Investors should consider market demand, company fundamentals, and potential disruptions when evaluating semiconductor stocks [7]. Top NSE-listed semiconductor stocks include Bharat Electronics Ltd and HCL Technologies Ltd [7].