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From design to fabrication: India poised to emerge as a trusted hub in the global semiconductor supply chain

Collaboration with global players is essential for India to build a competitive semiconductor ecosystem, Shetal Mehta, Co-Founder, Suchi Semicon

Shetal Mehta, Co-Founder, Suchi Semicon

From design to fabrication: India poised to emerge as a trusted hub in the global semiconductor supply chain
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15 Oct 2025 6:40 AM IST

India’s semiconductor industry is at an early but important stage, “and the next five years will be about building a strong base,” says Shetal Mehta, Co-Founder of Suchi Semicon in an exclusive interaction with Bizz Buzz.

The government has announced an incentive package of around $10 billion to attract investment, and this is already driving interest from global players. India currently imports nearly all its semiconductors, and demand is expected to touch $110 billion by 2030


How do you see India’s semiconductor industry evolving in the next five years, especially with the government’s recent policy and incentive push?

India’s semiconductor industry is at an early but important stage, and the next five years will be about building a strong base. The government has announced an incentive package of around $10 billion to attract investment, and this is already driving interest from global players. India currently imports nearly all its semiconductors, and demand is expected to touch $110 billion by 2030.

With such growth, the focus will be on areas like chip design, testing, assembly, and packaging. If India can successfully scale packaging services first, it will reduce dependence on imports and create a pathway toward more advanced manufacturing in the long run. The next five years will set the foundation for creating jobs, building skills, and positioning India as a trusted partner in the global semiconductor supply chain.

OSATs have been positioned as India’s fastest scalable entry point into semiconductors. Why do you think OSAT is such a critical piece of the puzzle for India?

Outsourced Semiconductor Assembly and Test (OSAT) is a critical starting point because it also enables packaging solutions that directly determine chip performance, power efficiency, and reliability.

Globally, the OSAT market is valued at more than $40 billion, and demand is rising as chips become more advanced and diverse. For India, where demand for electronics is already among the top three globally, OSAT provides a practical way to begin participation without waiting for decades-long fabrication projects to take shape. By focusing on assembly and testing, India can integrate quickly with global supply chains while creating employment and skill development opportunities.

This will also help meet the government’s aim to make India a trusted electronics hub. OSAT is not just a stepping stone but a vital segment that can support India’s growing semiconductor needs effectively and sustainably.

Gujarat has quickly emerged as the epicentre of semiconductor investments in India. What makes Gujarat stand out compared to other states?

Gujarat has become a focal point for semiconductor investments because of a combination of policy, infrastructure, and readiness. The state has set up a dedicated semiconductor policy, providing land, electricity, and water at competitive rates, which are crucial for the industry.

Gujarat is also well connected with strong ports and logistics facilities, which make global trade easier. The state’s push on renewable energy helps ensure a reliable power supply, which semiconductor operations require 24/7. From a workforce perspective, Gujarat already has several technical institutes that can supply talent.

It is also one of the few states to announce structured support for skill development in electronics and semiconductors. Combined with strong government backing, these factors make Gujarat stand out as a natural choice for investors and have helped the state position itself as India’s emerging semiconductor hub.

How do you view India’s role in the global semiconductor supply chain, particularly at a time when companies are seeking alternatives to China due to geopolitical shifts?

India has a strong opportunity to become a reliable part of the global semiconductor supply chain, especially as companies look to diversify beyond existing markets. Currently, India’s growing electronics demand and supportive policies make it an attractive partner.

Global semiconductor trade is valued at more than $500 billion, and India’s domestic demand alone is expected to touch $110 billion by 2030. This means India can play both as a large consumer market and as a trusted production and service hub.

With geopolitical shifts encouraging supply chain diversification, India’s strengths in design, IT services, and now OSAT make it well placed to gain trust. The key will be to ensure predictable policies, build infrastructure quickly, and deliver consistent quality to integrate into global value chains.

Beyond OSAT, what are the biggest challenges India must address, talent, R&D, or infrastructure, to move towards a full-stack semiconductor ecosystem by 2030?

India is uniquely positioned to advance on all three fronts in parallel. With one of the world’s largest pools of young engineers, the country can rapidly scale its semiconductor workforce to over a million professionals by 2030, covering everything from chip design to advanced manufacturing.

On R&D, India is already leveraging its strong design ecosystem and expanding public-private research initiatives, which can turn the country into a hub for innovation-driven semiconductor technologies. Infrastructure, too, is receiving unprecedented government focus, with dedicated semiconductor clusters, assured power and water supply, and logistics corridors being developed to global standards.

By building talent, R&D, and infrastructure together, India is not just catching up; it is laying the foundation for a sustainable, globally competitive full-stack semiconductor ecosystem by 2030.

Do you believe India’s focus on OSAT could help accelerate its move toward building fabrication capabilities in the long run?

Yes, focusing on OSAT can help India accelerate its path to fabrication in the long run. Fabrication is highly capital-intensive, often requiring investments upwards of $10 billion per plant, and takes years to establish. By mastering OSAT first, India can create the necessary ecosystem of suppliers, logistics, and talent that will eventually support fabrication.

Moreover, as India strengthens its demand for semiconductors, projected to reach $110 billion by 2030, having a strong OSAT base will make fabrication projects more viable. It creates confidence for investors and ensures that downstream processes are already aligned.

This staged approach allows India to reduce risk while still moving steadily toward the long-term goal of building advanced fabrication capabilities.

How important is collaboration with global players in building India’s OSAT and semiconductor ecosystem, and what kind of partnerships do you see as most impactful?

Collaboration with global players is essential for India to build a competitive semiconductor ecosystem, as it brings access to technology, expertise, and global markets. For example, technical collaborations can transfer knowledge on packaging, testing, and advanced assembly.

Academic partnerships can help train engineers in new technologies, while industry collaborations can give Indian companies entry into established global supply chains. Joint ventures and technology-sharing agreements are likely to be the most impactful because they combine capital, skills, and market access.

With the government’s $10 billion incentive scheme already in place, partnerships with global players can ensure that India not only builds capacity but also develops credibility as a trusted partner worldwide.

If you had to outline a roadmap for Gujarat to sustain its momentum as India’s semiconductor hub, what would be the three most critical milestones?

Gujarat already has a strong foundation, and the roadmap ahead is about scaling that momentum. The first milestone is to deepen its world-class infrastructure, expanding dedicated clusters with assured power, water, and logistics that match global standards.

The second milestone is to nurture talent pipelines by leveraging Gujarat’s universities and technical institutes, turning the state into a magnet for semiconductor professionals as India moves toward one million skilled workers by 2030.

The third milestone is ecosystem integration: fostering a vibrant network of suppliers, material providers, and equipment partners that reduces import reliance and creates end-to-end efficiency.

By delivering on these milestones, Gujarat won’t just sustain momentum; it will solidify its position as the epicentre of India’s semiconductor journey and a globally competitive hub.

Semiconductor Industry OSAT Gujarat Investments Government Incentives Global Supply Chain Shetal Mehta Suchi Semicon 
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