India–Republic Of Korea Strategic Vision 2026–2030: Building A Resilient Semiconductor Ecosystem Partnership

Policy Update

Riddhi Suthar

Background

The India–Republic of Korea (ROK) Strategic Vision 2026–2030: Building a Resilient Semiconductor Ecosystem Partnership is a bilateral strategic framework announced during the April 2026 state visit of South Korean President Lee Jae Myung to India. India and South Korea elevated their bilateral ties to a “Special Strategic Partnership” in 2015. The semiconductor-focused strategic shift gained momentum after the launch of India’s India Semiconductor Mission (2021).

The major objectives of the India–ROK semiconductor ecosystem partnership include building a Resilient Semiconductor Supply Chain, Semiconductor Manufacturing Cooperation, Semiconductor Design and R&D, Technology Transfer and Skill Development, Expanding Bilateral Trade and strengthening economic security

India–Korea Digital Bridge, Joint Task Forces, Industrial Cooperation and Supply Chain Security are the Key Components of the Semiconductor Partnership. The policy benefits multiple stakeholders like the Indian Semiconductor Industry, Korean Technology Firms, Electronics and AI Sectors, Skilled Workforce and Startups and Strategic and Security Sectors

The India–Republic of Korea (ROK) Strategic Vision 2026–2030 functions through a layered institutional framework. The mechanism includes annual leadership summits, Foreign Policy and Security Dialogues, Vice Minister-level 2+2 consultations, the India–ROK Industrial Cooperation Committee, Defence Industry Joint Committee, and specialised task forces on semiconductors, AI, supply chains, and emerging technologies.

By integrating South Korea’s semiconductor expertise with India’s manufacturing ambitions and digital market scale, the partnership seeks to create a trusted Indo-Pacific semiconductor ecosystem capable of supporting long-term economic growth, technological sovereignty, and strategic resilience.

Functions

India launched the India Semiconductor Mission with an outlay of nearly US$10 billion (₹76,000 crore) to develop semiconductor and display manufacturing ecosystems. South Korea accounts for nearly 19–20% of the global semiconductor market, led by companies such as Samsung Electronics and SK Hynix.

The India–Korea Digital Bridge initiative, which fosters collaboration in semiconductor design, fabrication, AI-enabled chip systems, and digital infrastructure, is a key operational element of the agreement. Joint task forces are anticipated to support semiconductor fabrication and packaging cooperation, workforce training and talent exchange, cooperative research and development, knowledge transfer frameworks, and partnerships with semiconductor startups. The semiconductor ecosystem partnership primarily functions through three interconnected layers:

Manufacturing and Industrial Cooperation:

India provides large-scale manufacturing infrastructure, government incentives, and market demand, while South Korea contributes advanced semiconductor technology, fabrication expertise, and supply-chain integration. The partnership supports OSAT (Outsourced Semiconductor Assembly and Test) facilities, semiconductor packaging units, and advanced chip testing infrastructure in India, involving an investment of nearly US$120 million (around ₹8.9 billion).

Supply-Chain Resilience and Economic Security

The policy functions as part of broader Indo-Pacific economic security cooperation. China currently accounts for nearly 30–35% of global electronics manufacturing capacity, creating vulnerabilities in semiconductor supply chains. India and the ROK aim to reduce excessive dependence on China-centric semiconductor supply chains by diversifying sourcing, manufacturing, and logistics networks. The semiconductor industry is expected to surpass US$1 trillion globally by 2030, leading to increased competition for resilient supply chains.

Innovation and Human Capital Development

Additionally, the partnership functions through academic institutions, industry innovation platforms, and research institutes. It is anticipated that collaborative R&D projects in AI chips, semiconductor design, 6G technologies, and smart manufacturing would increase technological capability. India currently contributes nearly 20% of the global semiconductor design workforce, strengthening its role in chip design and innovation services.

Performance

The policy aligned India’s “Act East Policy” with South Korea’s “New Southern Policy,” expanding cooperation beyond trade into semiconductors, AI, economic security and Indo-Pacific technology partnerships. Under the Union Budget 2026–27, the India Semiconductor Mission (ISM) 2.0 received an additional allocation of ₹1,000 crore, focusing on semiconductor equipment, materials manufacturing, indigenous IP creation, workforce training and supply-chain resilience.

The Electronic Component Manufacturing Scheme (ECMS) allocation increased from approximately ₹22,919 crore to ₹40,000 crore to support electronics and semiconductor supply chains. In 2025–26, India approved 6 major semiconductor facilities under ISM, followed by 4 additional semiconductor projects with a cumulative investment of approximately ₹4,600 crore.

The HCL Group–Foxconn semiconductor joint venture approved by the Union Cabinet involves investment worth approximately ₹3,706 crore (US$435 million) and production capacity of 20,000 wafers per month,36 million display driver chips annually. The Union Cabinet approved the HCL Group-Foxconn semiconductor joint venture, which involves investment worth approximately ₹3,706 crore (US$435 million) and production capacity of 20,000 wafers per month,36 million display driver chips annually.

In 2025, the size of the Indian semiconductor market was close to US$45–50 billion, and by 2030, it is expected to reach US$100–110 billion. The Economic Survey 2025–26 highlighted semiconductors as a “mission-mode strategic sector”. India showcased its first “Made-in-India” semiconductor chips at Semicon India 2025 within only 3.5 years of launching ISM. The partnership contributed to the diversification of semiconductor supply chains amid rising US–China technology competition.

Impact

By incorporating India into resilient Indo-Pacific semiconductor supply chains, where South Korea continues to be a major technology stakeholder, India’s growth in semiconductor manufacturing, including the Tata Electronics semiconductor fabrication plant in Dholera, Gujarat, worth nearly US$11 billion strengthens the larger goals of the India–ROK Strategic Vision.

The Tata Electronics OSAT facility in Assam alone is projected to create nearly 27,000 direct and indirect employment opportunities meanwhile more than 78 universities and multiple research institutions were integrated into semiconductor talent and innovation programmes by 2025. The Tata Electronics OSAT facility in Assam, valued at nearly ₹27,000 crore, complements South Korea’s globally competitive semiconductor industry by expanding trusted manufacturing and packaging networks beyond geographically concentrated East Asian hubs.

India benefits from Korean technological expertise, while South Korea gains access to India’s rapidly expanding electronics market, highly skilled engineering workforce, and favourable industrial policy ecosystem under Make in India, Digital India, PLI Scheme, and ISM. India’s semiconductor market size also reached nearly US$45–50 billion in 2025 and is projected to grow to around US$100–110 billion by 2030. The Strategic Vision aligns with broader global “China-plus-one” and “friend-shoring” strategies adopted by several countries seeking to reduce dependence on China-centric manufacturing ecosystems.

The major impact of the Strategic Vision is India’s transition from a predominantly electronics assembly and semiconductor-consuming economy toward a higher-value innovation-driven semiconductor ecosystem. Under the India Semiconductor Mission, the Government of India approved semiconductor and semiconductor-related projects worth over ₹1.5 lakh crore (approximately US$18–20 billion) by 2025. Tata Electronics and India’s C-DAC signed an MoU in 2025 to develop indigenous semiconductor design capabilities and intellectual property ecosystems.

Emerging Issues

India still imports nearly 90% of its semiconductor requirements, making supply chains vulnerable to geopolitical disruptions and external shocks. Despite investments under the India Semiconductor Mission, India remains largely dependent on East Asian semiconductor ecosystems for advanced chip fabrication equipment, wafer production, and lithography systems.

Industry estimates suggest India may require nearly 1.5 million skilled workers and 5 million semi-skilled workers across the semiconductor value chain by 2026–27. India currently has strong chip-design talent but limited expertise in advanced fabrication, lithography, and packaging technologies.

India’s semiconductor ecosystem remains heavily dependent on foreign technology partnerships and imported intellectual property and domestic manufacturing capability remains limited. Semiconductor fabs require highly stable electricity, ultra-pure water systems, logistics infrastructure, and advanced industrial ecosystems. Delays in land acquisition, environmental clearances, and infrastructure readiness may slow implementation of semiconductor projects in India.

Semiconductor manufacturing remains highly capital-intensive, limiting the participation of startups and MSMEs. India’s semiconductor transition requires stronger integration of startups in chip design, embedded systems, AI hardware, and semiconductor software ecosystems

Way forward

India and South Korea should establish a joint semiconductor supply-chain resilience mechanism for critical minerals, wafers, gases, and semiconductor equipment. Creating specialised semiconductor research clusters under the Centre for Development of Advanced Computing and Korean technology institutes and expanding scholarships and faculty exchange programmes in semiconductor engineering, AI-driven chip design, and nanotechnology. Both countries should promote the co-development of indigenous semiconductor intellectual property and patent ecosystems.

Central–state coordination mechanisms should be strengthened for faster approvals and project implementation. For sustainable semiconductor manufacturing, renewable energy should be integrated with water recycling systems. Both countries should expand cooperation with the Quad countries, the EU, and ASEAN for semiconductor resilience. India should expand public–private partnerships under the Strategic Vision framework.

References

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About the Contributor

Riddhi Suthar is a researcher and policy enthusiast with interests in public policy, governance, international relations, maritime affairs, and strategic studies. Their work focuses on evidence-based policy analysis, geopolitical developments, and emerging global challenges, with particular attention to India’s strategic and developmental priorities. She is engaged in analytical writing, policy research, and academic discussions related to governance, security, and international affairs.

Acknowledgement

The author extends sincere gratitude to the IMPRI team for their expert guidance and constructive feedback throughout the process.

Reviewed by Asmatwali and Shreeya Dixit