From fabless dreams to fabs reality, India chases semiconductor self-reliance

India is home to a fifth of the world’s chip design engineers and it is currently buzzing with expectations that it would establish itself as a dominant player for chip making, sooner than later. Interestingly, India’s semiconductor market is projected to more than double to $100 billion by 2030, up from $52 billion in 2025 (Meity’s forecast), and from the record global participation at Semicon India 2025, it is evident that global attention is firmly on the country.

At this outset, call it an initiative that is designed to accelerate the journey from design to manufacturing for India’s fabless semiconductor startups or something else! India Foundry Connect Programme started one year ago, has been continuously providing startups with access to GF’s advanced Product Design Kits (PDKs), GlobalShuttle Multi Project Wafer (MPW) fabrication, IP libraries, and engineering expertise.

Global Foundries (GF) is a leading manufacturer of essential semiconductors the world relies on to live, work and connect, with its global manufacturing footprint spanning the US, Europe, and Asia. Mind you that this programme aligns closely with India’s Design Linked Incentive (DLI) scheme, enabling eligible companies to fast-track their silicon innovations toward commercial manufacturing.

The programme aims at enabling local startups and OEMs with scalable, reliable manufacturing tailored to their needs—from PDKs, IPs, shuttle for test chips to tapeout. Since its launch in 2024, the program has seen consistent growth in customer engagement.

With government initiatives like the DLI scheme, GF will help companies move from design to silicon, empowering India’s fabless semiconductor ecosystem and driving faster product realization.

Simultaneously, the Centre has introduced a special scheme. The Scheme for setting up of Semiconductor Fabs in India shall extend fiscal support of up to 50 per cent of project cost on pari-passu basis to the approved applicants.

The scheme shall be appraised by the Expenditure Finance Committee chaired by Secretary, Department of Expenditure. The Expenditure Finance Committee shall determine the structure and quantum of fiscal support under the scheme for establishing the semiconductor fabs.

Significantly, India has also lined up an ambitious India Semiconductor Mission (ISM) that aims to build a strong semiconductor and display ecosystem, positioning India as a global hub for electronics manufacturing and design, while serving as the nodal agency for the efficient and seamless implementation of semiconductor and display schemes.

GF India is also engaging with IESA and SEMI India’s extensive network of fabless startups, academia, and industry stakeholders to create awareness about the technologies and their benefits.

One also has to keep in mind that currently, the $681-billion global chip industry is undergoing one of its sharpest shake-ups in years, thanks to trade tensions and Trump-era tariffs.

Major global players are reassessing and looking for an alternative to do away with their heavy reliance on China, a key player in chip manufacturing, as the geopolitical risks move up. And the result is a global race to build more secure and cost-effective production networks.

India sees a huge opportunity in all these. And that’s not without reasons.