Core Viewpoint - India is emerging as a potential player in the semiconductor industry, with significant investments and government support, but challenges remain in manufacturing capabilities and supply chain resilience [1][11][18]. Group 1: Market Growth and Strategic Importance - India's semiconductor market is valued at approximately $38 billion in 2023, expected to grow to $45-50 billion by the end of 2025, and further expand to $100-110 billion by 2030, potentially accounting for about 10% of global consumption [1][11]. - The Indian government launched the Indian Semiconductor Mission (ISM) in December 2021, with a budget of $10 billion to build a self-sufficient semiconductor ecosystem [11][16]. Group 2: Key Developments with Major Companies - Apple is in preliminary discussions with CG Semi for chip packaging and assembly collaboration in India, indicating a shift in its supply chain strategy [2][3]. - Intel is also focusing on India's packaging and manufacturing systems, establishing a strategic alliance with Tata Group to enhance local semiconductor capabilities [5][9]. Group 3: Manufacturing and Infrastructure Initiatives - Major projects under the ISM include a $2.56 billion packaging and testing facility by Micron in Gujarat and a $10.37 billion collaboration between Tata Electronics and PSMC for a foundry [11][12]. - Tata Group plans to invest approximately $14 billion in two semiconductor factories, with one in Gujarat for wafer manufacturing and another in Assam for OSAT [8][9]. Group 4: Challenges and Future Outlook - Over 90% of India's semiconductor demand is currently met through imports, making the country vulnerable to global supply chain disruptions [11]. - While India is making strides in semiconductor packaging, it still faces significant challenges in achieving stable production and supply chain integration, with a timeline of 5-8 years for full-scale wafer production [14][18].

Core Viewpoint - India is focusing on mature node manufacturing (28nm to 65nm) rather than competing in advanced technology led by TSMC, Samsung, and Intel, aiming to fill supply chain gaps and build necessary skills and infrastructure [1][3] Group 1: Government Initiatives - The "Semicon India" initiative launched in 2021 has a budget of $8.7 billion and has approved 10 projects across six states, with total investments reaching $18.3 billion [1] - Recent approvals in Odisha, Andhra Pradesh, and Punjab have further expanded the initiative, with commitments from major companies like Tata Electronics, Foxconn, and Micron Technology [1] Group 2: Market Dynamics - The demand for mature chips is increasing in sectors like automotive and industrial applications, which could lead to profitable opportunities despite being traditionally viewed as low-margin products [2] - Analysts warn of price pressure from Chinese foundries, which have costs over 10% lower than India's, highlighting the need for strategic partnerships to avoid oversupply [2] Group 3: Long-term Implications - The focus on mature node manufacturing is seen as a way to enhance supply chain resilience amid geopolitical tensions, making India a more attractive partner in the global industry [5] - The semiconductor component market in India is projected to grow to $30 billion by 2026, driven by local and global demand for mobile devices, wearables, electric vehicles, and robotics [5]