As the global apex body representing the semiconductor and electronics design and manufacturing supply chain, here are SEMI’s expectations for the budget 2025:
India is currently at the cusp of becoming a major global semiconductor hub. As we anticipate the 2025 Union Budget, I must say that it is also going to be a key inflection point for the industry at large. To take a significant step forward, it is imperative for India’s semiconductor value chain to: Make strategic investments in domestic manufacturing capabilities, expand R&D funding, and drive sustainable innovation across.
India must also develop a resilient supply chain as well as a skilled workforce. It is very crucial for the industry, and to make this happen, there must be collaborations with premier universities and institutions like IITs and NITs to create specialized curricula tailored to semiconductor technologies. This will address the industry’s rising demand for talent.
Taiwan is the current leader in global semiconductor manufacturing with over a 50% share, followed by South Korea, and we are seeing multiple governments investing to grow their share. For India to be a competitive player, it is key that the country implements some optimized duty structures for importing critical components that are needed in the semiconductor industry. India must also propose some export incentives that can strengthen global market competitiveness.
It is important to maintain a long-term perspective in policies to build India’s semiconductor ecosystem. This is a marathon, not a sprint. The government will need to demonstrate sustained commitment until the emerging semiconductor ecosystem is robust enough to stand on its own, particularly to attract investment from major multinational corporations. I believe that with the alignment of the fiscal policies, duty frameworks, and the much-needed skilling initiatives, India can establish itself as a foundation of the global semiconductor ecosystem. This will drive both innovation and economic growth.
