In a significant boost to India’s semiconductor ambitions global chipmaker Lam Research has announced a major investment of Rs 10,000 crore in the country. The announcement was made during the Invest Karnataka-2025 event marking a pivotal moment in India’s journey toward becoming a global semiconductor hub.
Ashwini Vaishnaw, Minister for Railways, Information & Broadcasting, and Electronics & IT, hailed the investment as a milestone in India’s semiconductor journey. In a post on X (formerly Twitter), Vaishnaw stated, “One more milestone in our semiconductor journey: Lam Research announces major investment of over Rs 10,000 crore in India. Big vote of confidence in PM @narendramodi Ji’s semiconductor vision.”
India’s Semiconductor Market: A Growing Opportunity
The Indian semiconductor market,\ valued at approximately 38 billion in 2023, is projected to grow to 38 billion in 2023 ,is projected to grow to 109 billion by 2030 driven by increasing demand for electronics, automotive, and industrial applications. To capitalize on this growth and reduce reliance on imports, the Indian government has launched several initiatives to promote domestic semiconductor manufacturing.
Government Initiatives Driving Semiconductor Growth
- India Semiconductor Mission (ISM):
The ISM aims to build a sustainable semiconductor and display ecosystem positioning India as a global leader in electronics manufacturing and design. Guided by international semiconductor experts the mission coordinates efforts across government ministries, industry, and academic institutions to ensure efficient resource deployment and support. - Semicon India Program:
Launched in 2021 with a financial outlay of ₹76,000 crore the Semicon India program is designed to promote the domestic semiconductor industry through incentives and strategic partnerships. The program supports various sectors of the semiconductor industry including fabrication facilities (fabs), packaging, display wires, outsourced semiconductor assembly and testing (OSATs), sensors, and other critical components. The program includes four key schemes:- Modified Scheme for Setting Up Semiconductor Fabs in India
- Modified Scheme for Setting Up Display Fabs in India
- Modified Scheme for Setting Up Compound Semiconductors/ Silicon Photonics/ Sensors Fab/ Discrete Semiconductors Fab
- Design Linked Incentive (DLI) Scheme
Lam Research’s Strategic Investment
Lam Research’s Rs 10,000 crore investment underscores the growing confidence of global semiconductor players in India’s potential. The company, a leading supplier of wafer fabrication equipment and services to the semiconductor industry, is expected to play a crucial role in strengthening India’s semiconductor manufacturing ecosystem.
This investment aligns with the government’s vision of making India a global semiconductor hub and reducing dependency on imports. It also highlights the success of initiatives like the Semicon India program in attracting global players to invest in the country.
Impact on India’s Semiconductor Ecosystem
Lam Research’s investment is expected to:
- Boost Domestic Manufacturing: Enhance India’s capabilities in semiconductor equipment manufacturing, reducing reliance on imports.
- Create Jobs: Generate employment opportunities in high-tech manufacturing and related sectors.
- Foster Innovation: Encourage research and development in semiconductor technologies, positioning India as a hub for innovation.
- Strengthen Supply Chains: Improve supply chain resilience by localizing critical components of semiconductor production.
Conclusion
Lam Research’s Rs 10,000 crore investment marks a significant step forward in India’s semiconductor journey. With the government’s proactive initiatives and the growing interest of global players, India is well on its way to becoming a key player in the global semiconductor industry.
As the Indian semiconductor market continues to expand, driven by rising demand and supportive policies, investments like Lam Research’s will play a crucial role in building a robust and self-reliant semiconductor ecosystem. This development not only strengthens India’s position in the global semiconductor arena but also paves the way for sustainable economic growth and technological advancement.
