The India Electronics and Semiconductor Association (IESA) is accelerating its multi-pronged strategy to develop the country's semiconductor value chain, expanding cross-border industry collaborations while advancing state-level partnerships and workforce development programs.
Speaking to DIGITIMES Asia, IESA President Ashok Chandak said the group is doubling down on international cooperation, emphasizing firm-to-firm collaborations and technology transfer opportunities over traditional government-led negotiations.
"We strongly believe these international cooperations are a must, particularly for India's manufacturing sector, because we don't yet have the mature processes or technology for mass semiconductor production - whether it's foundry or OSAT," said Chandak, who is also the president of Semi India. "Through our MoUs with multiple global industry bodies, we are working to attract companies to set up operations, form joint ventures, or engage in technology transfer activities."
In March 2025, IESA organized roundtables with delegations from countries like Korea, Taiwan, Singapore, Malaysia, Sweden, the Netherlands, and the US at its Vision Summit in Gandhinagar. A follow-up webinar with Malaysia's semiconductor association, economic development agency, and embassy was conducted in April 2025. More such bilateral engagements are expected in the coming months.
"We focus on industry-level engagements. Government dialogue happens through ministries like MEITY or External Affairs. We join those, when necessary, but our priority is enabling the ecosystem through industry bodies," Chandak explained.
Manufacturing momentum
India's OSAT and ATMP landscape is gaining traction, with projects by Micron, Kaynes, CG Power, Sahasra, and others progressing across Gujarat, Bhiwadi, Surat, and Chennai. Notably, Tata has announced plans for the country's first full-scale foundry.
"This year, we see it as quite realistic that the first Made-in-India packaged chips —particularly from the ATMP and OSAT facilities — will reach the market," Chandak said. "That will be a milestone and a proof-of-the-pudding moment for India's semiconductor aspirations."
IESA is also tracking new proposals under evaluation by states and expects the central government to soon announce a second phase of incentives under "Semicon India 2.0."
Design-to-product transition
On the design front, about 12 startups have secured financial backing under the Design Linked Incentive (DLI) scheme, and several teams are accessing EDA tools under the Chip-to-Startup (C2S) initiative. Multinationals like NXP and Infineon are also expanding captive design centers.
"We've submitted a report to the government recommending that India focus on product creation as the next big step. That's where most of the profit and economic value lies," Chandak said, adding that this recommendation has been shared with the government.
Skill-building initiatives
To meet the industry's demand for skilled labor, IESA launched a pilot ATMP skilling program in Gandhinagar in April 2025. It plans to scale up training initiatives nationally in collaboration with SEMI.
"We have a strategic alliance with SEMI, and we're launching multiple training programs using their global curriculum. This includes manufacturing skills as well as design and R&D-focused education with the Indian Design and Packaging Systems Initiative (IDPS)," Chandak said.
IESA is also advising several states — including Karnataka, Gujarat, Madhya Pradesh, Odisha, Chhattisgarh, and Maharashtra — on policy formulation, investment facilitation, and ecosystem readiness. "We participate in approval committees and help shape state-level policy frameworks. It's about ensuring states develop relevant clusters, not just infrastructure," Chandak added.
Growing market, expanding opportunity
India's domestic semiconductor demand is projected to reach around US$103 billion by 2030. Globally, the chip market, valued at just under US$600 billion in 2023, is expected to cross US$1 trillion by the end of the decade.
"There's enough opportunity for every region to contribute," Chandak said. "India offers a vibrant design ecosystem and a massive captive market. Our focus should be on leveraging these strengths."
IESA will showcase ongoing initiatives at Semicon Southeast Asia in Singapore this May 2025 and the flagship Semicon India event in New Delhi in September 2025.
Article edited by Jerry Chen
