KOTRA backs Korean firms' push into India's booming semiconductor supply chain

Korean materials, components and equipment companies are moving to secure a foothold in India's semiconductor supply chain, targeting a market projected to reach $110 billion by 2030. As India rapidly expands its semiconductor production facilities backed by large-scale government subsidies, the push is to help Korean firms lock in local business relationships from the earliest stages of that buildout.

KOTRA announced Friday that it held the "Korea-India Semiconductor Partnership Week" from Wednesday through Saturday in conjunction with Semicon India 2026 at Yashobhoomi in New Delhi.

The event is one of the follow-up initiatives stemming from expanded economic cooperation between the two countries since President Lee Jae Myung's state visit to India in April. During that visit, Lee and Indian Prime Minister Narendra Modi agreed to raise bilateral trade from around $25 billion annually to $50 billion by 2030 and to accelerate negotiations on improving the Korea-India Comprehensive Economic Partnership Agreement (CEPA).

Having held an event last month to boost exports of Korean consumer goods, KOTRA broadened the scope of cooperation this time to cover the semiconductor supply chain. The program ran from policy seminars on India's semiconductor landscape to exhibitions, export consultations and roundtable discussions between companies from both countries.

India is building a domestic semiconductor production base through its government-led India Semiconductor Mission (ISM), channeling roughly $8.4 billion in subsidies into the effort.

Of the 12 semiconductor projects currently approved, nine are concentrated in back-end processes such as packaging and testing. Global companies including Micron and Foxconn have also been making local investments.

India's semiconductor market is forecast to more than double, from $54 billion last year to $110 billion by 2030. With the Indian government rolling out a follow-on policy called "Semicon 2.0," competition among global companies to secure early positions in production equipment, materials and components is intensifying.

Semicon India 2026, which opened Thursday, drew more than 600 companies from 52 countries. South Korea set up a dedicated national pavilion alongside Japan, the Netherlands, Singapore and others.

KOTRA is particularly focused on helping small and mid-sized Korean materials, components and equipment firms enter India's new production facilities as suppliers from the ground up. The strategy targets not only cutting-edge advanced-node processes but also equipment for mature-node processes widely used in automotive and home appliance applications, as well as the materials and components market for local factories.

Earlier, KOTRA invited Amitesh Kumar Sinha, CEO of the India Semiconductor Mission, to an online policy briefing for Korean companies on Sept. 8.

The Semiconductor Partnership Strategy Seminar held Wednesday in New Delhi brought together Invest India, the Electronics Sector Skills Council of India (ESSCI), KPMG and EY, among others. The session introduced Korean companies to India's semiconductor market outlook, regional investment conditions, tax and labor regimes, and strategies for securing local talent.

Fifteen Korean companies dealing in back-end semiconductor equipment, packaging materials and power semiconductors participated in the Korean pavilion, which runs for three days starting Thursday.

Those firms held a total of 80 one-on-one export and technology cooperation consultations with 40 Indian buyers. Major local semiconductor companies — including Tata Electronics, Kaynes, CG Semi and IndiaChip — also took part, exploring the possibility of adopting Korean products and technology.

On Friday, KOTRA co-hosted the "Korea-India Semiconductor Roundtable" with the India Electronics and Semiconductor Association (IESA). About 60 representatives from companies, government agencies and industry organizations from both countries attended, discussing supply chain cooperation and investment incentives.

Semiconductors are also playing a growing role in bilateral trade. Korea's exports to India totaled $16.8 billion in the January–August period this year, up 30.8 percent from the same period a year earlier. Rising semiconductor demand driven by India's expanding investment in AI and data centers was identified as a key factor behind the export surge.

KOTRA plans to connect the purchasing and investment demand identified at the event with additional Korean companies, and to provide follow-up support for promising projects through its Global Partnering program. A market report on India's semiconductor industry and entry environment is also set for release in the fourth quarter of this year.

"Now is the time to partner with local players and prepare to secure an early position in the market, as India emerges as a global semiconductor production hub," KOTRA President Kang Kyung-sung said. "We will do our utmost to expand the K-materials, components and equipment partnership — building on consumer goods and now centering on semiconductors — to help usher in the era of $50 billion in Korea-India trade by 2030, as announced by the two leaders during the April summit."