India pushes for 50% semiconductor self‑sufficiency by 2035, adds Intel‑backed glass substrate project

India aims to meet 50% of its domestic semiconductor demand by the fiscal year 2035, seeking to curb a rising import bill that reached $30.3 billion in FY25. The Ministry of Electronics and Information Technology says the country’s semiconductor demand could grow five‑fold to $206 billion by 2035, prompting a decade‑long scaling drive under the India Semiconductor Mission (ISM). Twelve projects have been cleared, with at least four facilities – led by Tata Group, CG Power and Kaynes – slated to start commercial production this year, targeting a combined output of 69 million chips daily. The government also approved an advanced micro‑LED chip line and allocated roughly Rs 100,000 crore (≈$12 billion) for ISM 2.0 to localise raw materials, chemicals, gases and equipment, aiming to build a full‑stack domestic ecosystem valued at $120 billion by 2035.

Separately, Intel and US‑based 3D Glass Solutions signed a memorandum of understanding to explore an advanced packaging glass‑core substrate facility in Odisha. While Intel will not manufacture chips in India, it will contribute technology and process expertise to develop high‑purity glass substrates that improve thermal management and signal integrity for AI accelerators and high‑performance computing. The initiative follows two earlier missed opportunities for Intel fabs in India and could place the country in a strategically important segment of the global semiconductor supply chain.