Powering the Future: India’s Strategic Digitalization in Semiconductor and IT Hardware Industries

India’s quest for technological self-reliance and global competitiveness is being propelled by transformative digitalization initiatives in the semiconductor and IT hardware sectors. Recognizing these domains as the backbone of a robust digital economy, the Government of India has launched comprehensive policies, large-scale investment programs, and institutional collaborations to establish the country as a major player in the global technology supply chain.

 

India Semiconductor Mission: A Flagship Initiative for Industry Transformation

 

Since its launch in 2021, the India Semiconductor Mission (ISM) has emerged as the central axis driving policy coherence and investment facilitation for semiconductor design, fabrication, and manufacturing. Backed by a ₹76,000 crore (approximately USD 9.2 billion) corpus, ISM supports three key pillars:

 

• Fabrication-linked incentive schemes (FLI) that provide capital and operational subsidies to semiconductor fabs;
• Display manufacturing incentives (DMI) to promote advanced AMOLED and LCD panel production for electronics;
• Design Linked Incentives (DLI) targeting chip design startups with financial assistance for prototyping, EDA tools, and intellectual property creation.

 

The mission actively fosters academia-industry collaborations, talent development programs, and global technology partnerships. These efforts drastically reduce barriers for domestic and international semiconductor firms establishing manufacturing clusters in India.

 

Expanding Semiconductor Ecosystem and Market Outlook

 

India’s semiconductor industry, valued at around USD 38 billion in 2023, is projected to grow to USD 45-50 billion by the end of 2025 and surpass USD 100 billion by 2030. Achievements in 2025 include the inauguration of the nation’s first indigenous advanced 3-nanometer semiconductor chip and approvals for 10 strategic semiconductor projects spanning High-Volume Fabrication Units (Fabs), 3D heterogeneous packaging, and compound semiconductors like Silicon Carbide (SiC).

 

Complementing the policy ecosystem are production-linked incentives (PLIs) and state-level subsidies on land, power, and water, which collectively mitigate up to 30% of capital expenditure for fab projects. India-US cooperative frameworks for critical technologies further amplify research capabilities and supply chain diversification.

 

Digitalization and Growth in IT Hardware Sector

 

The IT hardware industry, positioned as a critical enabler of the digital economy, is witnessing rapid modernization and domestic manufacturing growth under programs such as “Digital India” and “Make in India.” Valued at approximately USD 15 billion in 2025, the sector benefits from government incentives, infrastructure modernization, and adoption of Industry 4.0 practices.

 

Demand is driven by expanding cloud infrastructure, enterprise digitization, and emerging needs for AI-enabled computing devices. Domestic manufacturers are innovating in modular servers, ultra-thin laptops, and IoT-integrated hardware, reshaping India’s capabilities in high-tech electronics fabrication and integration.

 

Overcoming Challenges with Strategic Policy and Industry Collaboration

 

While India’s semiconductor and IT hardware ambitions are significant, challenges remain in terms of complex fab infrastructure requirements, skilled workforce shortfall, technology access limitations, and environmental compliance. The government addresses these through streamlined approvals, talent exchanges, increased funding for R&D, and global collaborations.

 

Key industry events like SEMICON India 2025 bring together government stakeholders, international semiconductor leaders, and startups, fostering knowledge exchange and investment acceleration, thus embedding India deeper into the global electronics value chain.

 

GIKS India: Partnering the Digital Revolution

 

At GIKS India, leveraging deep expertise in AI, cloud computing, and hardware-software integration, the company stands ready to support enterprises in harnessing the digital momentum fueled by these national initiatives. By aligning with government-driven semiconductor and IT hardware digitalization efforts, GIKS India seeks to enable clients to modernize infrastructure, deploy intelligent applications, and participate actively in India’s technological renaissance.

 

India’s semiconductor and IT hardware digitalization journey represents a decisive leap towards technological sovereignty and futuristic growth—and GIKS India is honored to partner this visionary transformation.