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India Advances Semiconductor Industry with Mature-Node Focus, Boosting Growth

Semiconductors and Electronics

Business Honor - India’s Mature-Node Chip Growth

Business Honor
18 August, 2025

India accelerates semiconductor growth by focusing on mature nodes, strengthening global supply chains and system integration.

India's semiconductor and electronics industry is taking off as the nation strategically positions itself to focus on mature-node chip production. Instead of entering the highly advanced 3nm and 5nm space dominated by industry leaders TSMC and Samsung, India is developing capacity in the 28nm to 65nm segment—key for high-volume industries like automotive, telecom, and industrial electronics. This is a strategic step by Bastion Research that puts India on a mission to occupy the missing space in the global chip supply chain. Mature nodes continue to be crucial for industries that need dependability and high volumes, not bleeding-edge performance. The report also makes comparisons between India's recent development and Taiwan and South Korea's early semiconductor adventures in the late 20th century.

Apart from manufacturing, India is fast developing in semiconductor system integration. With a strong talent base and growing ecosystem, Indian companies are providing class-leading integration services for consumer electronics, telecommunications, automotive systems, and medical devices. The international move towards a "China +1" strategy has further improved India's appeal as a semiconductor partner. As international companies seek to diversify supply chains, India is positioning itself as a cost-effective, assured alternative.

To propel this change, the Indian government initiated the Rs 76,000-crore Semicon India Programme in 2021. Recent sanctions for four fresh semiconductor projects worth Rs 4,600 crore in Odisha, Andhra Pradesh, and Punjab bring the number to 10 projects in six states, with investments of more than Rs 1.6 lakh crore. Prime Minister Narendra Modi reasserted the country's resolve by stating that made-in-India chips will reach stores by the end of the year. Not yet in the race for innovative chips, India's plan is working its way towards becoming a significant player in international semiconductor and electronics supply chains.