According to global economic data, India’s share of the global software outsourcing market was 51% in 2009 and further increased to 58% in 2012. Along with the demand of the Indian electronics market, it is bound to drive the development of semiconductor products.

Bill Gates predicted that the software superpower of the next century will be India.

According to data from the Indian Electronics and Semiconductor Association (IESA), the value of the Indian semiconductor component market is expected to reach $32.35 billion by 2025, growing at a compound annual growth rate of 10.1% between 2018 and 2025.

Since 2005, India has begun to realize the future development opportunities of semiconductors and decided to develop chip manufacturing. However, due to the global financial crisis in 2008, this idea and related policies have been stranded. It was not until 2012 that India renewed its focus on semiconductors.

India’s Electronic Policy (M-SIPS) was announced in 2012. The policy covers various electronic industry sectors, including electronic components and semiconductors, defense electronics, automotive electronics, industrial electronics, strategic electronics, etc., and plans to set up 200 electronic manufacturing clusters (EMC).

The goal is that by 2025, domestic manufacturing will achieve $400 billion in turnover, clustering the entire value chain, directly or otherwise employing more than 100 million rupees, achieving a 32% growth rate.

In the 2017-18 coalition budget, the Indian government increased the allocation of incentive programs such as the Special Incentive Program (M-SIPS) and the Electronic Development Fund (EDF) to 745 million rupees ($111 million) to provide The development of semiconductors and electronics manufacturing.

In the past few years, although there have been many problems in the early days, India has been quietly trying to move toward local chip design because India regards local chip development as a strategic need.

In the case of India, the country is seeking to create a local fabless semiconductor design ecosystem and use local talent to help foster academic institutions and startups.

India's idea is to move from a microprocessor that relies solely on global technology companies such as Intel, AMD and ARM, and mobile phone chips from Qualcomm, Samsung and MediaTek to a parallel path.

Over the past 20 years, many global semiconductor companies, including ARM, Qualcomm, Intel, Cadence, and Texas Instruments, have built design and software development infrastructure here, helping to develop a number of key talents who understand chip development.

While the trade friction between China and the United States is escalating, the Indian government is quietly starting the chip strategy of the big country's rising strategy. They plan to establish a mega economic zone in each state, mainly serving India's electronics manufacturing industry, which is the chip manufacturing industry.

Most notably, the plan hopes that India will achieve full localization of the chip and gain technological autonomy in 2020, indicating that India has realized the importance of chip autonomy for India's rise and national security.

India does not lack good chip designers. The design work of large international computers, the Internet, and even chip companies in India has become an open secret. Even Qualcomm handed over some of its research work to Indian companies.

Another good news for Indian chip manufacturing is its rising domestic digital product market. In India, the electronics market is just on track. Even if the quantity has been fully blossomed, there is still a huge room for improvement in quality, and the chip industry can see a clear market space. Of course, whether India’s consumption upgrade can really get up is still a problem to be observed.

It is said that the Indian government had planned to build two fabs on the Indian Peninsula. According to local media reports in India, JP's fab is expected to cost about $4 billion and will have the ability to manufacture 300mm wafers in advanced CMOS and 40,000 wafers per month. The plan was originally intended to be responsible for the overall operation of the fab by Tower, and IBM provided CMOS process technology.

The fab will begin with 90, 65 and 45nm CMOS nodes and progress to 28nm CMOS and 22nm nodes, while still lags behind today's most advanced chip manufacturing technology, but can be offered as an Internet of Things (IoT) application.

The Indian semiconductor industry is still in a backward stage, but there is a huge talent force behind it. Known as India's "magic jewel in the crown of science", the Indian Institute of Technology has sent many talents to the global technology industry. In terms of R&D capabilities for VLSI and chip design in the semiconductor industry, Bangalore and the Indian Institute of Technology, Mumbai's Center for Excellence in Nanoelectronics are prominent.

India's electronics industry is mainly distributed in New Delhi in the north and Bangalore in the south. Bangalore has always been known as the “Silicon Valley of India”. International companies such as Intel, IBM, Microsoft, Google, etc. have established R&D bases in Bangalore.

In addition, these two places have also attracted many semiconductor manufacturers to invest. Among them are Infineon and the former Freescale. Recently, Google is hiring for its chip division in India, and they are working on developing chipsets in the field of machine learning for terminal devices.

The Indian Electronics and Semiconductor Association hopes to design chips for energy meters, LED lighting, smart cards, rural broadband, and Internet of Things solutions in China. It is reported that the Indian Electronics and Semiconductor Association Accelerator plans to accelerate 20 startup companies in the next three years, and accelerate the acceleration of about 50 companies in the next five years. The Karnataka government has invested 215 million rupees in this accelerator and will invest a total of 560 million rupees in five years.

India's years of experience in software outsourcing and low labor costs have provided a basis for its development of the semiconductor industry. In addition, in the past two years, the Indian government has opened many preferential policies in the field of semiconductors, and may also attract many international manufacturers to invest, thus driving the development of the Indian semiconductor industry. At the same time, the recent instability in the global trade situation has brought many uncertain factors to the development of semiconductors. Therefore, no one can relax their vigilance on this road of developing the semiconductor industry.