Indian Semiconductor Market Summary

Indian Semiconductor Market had a value of USD 43.32 Billion in 2024 and expected it to hit USD 175.84 Billion by 2030, with a CAGR of 26.3 % during the forecast period.

Indian Semiconductor Industry Trends and Analytical Insights –

• In 2024, India’s semiconductor landscape entered an accelerated growth phase, driven by major policy incentives under the India Semiconductor Mission (ISM) and rapidly increasing domestic demand for electronics, EVs, telecom, and industrial automation.

• A large portion of India’s chip design ecosystem continued to expand, with over 20% of the world’s semiconductor design engineers located in India, supporting global R&D centers for firms like Intel, Qualcomm, MediaTek, Nvidia, and Texas Instruments.

• India’s dependency on imported semiconductor wafers and critical equipment remained high, with Taiwan, South Korea, China, and the U.S. constituting the bulk of India’s chip and component supply.

Market Size & Forecast:

• Market Size 2024: USD 43.32 Billion

• Projected Market Size 2030: USD 175.84 Billion

• CAGR (2024-2030): 26.3%

Indian Semiconductor Market Overview

India’s semiconductor strategy has moved from aspiration to action: the Union Cabinet approved the India Semiconductor Mission (Semicon India Programme) with a ₹76,000 crore (~USD 9–10 billion) outlay to incentivize fabs, display fabs, ATMP/OSAT (assembly, testing, marking & packaging) and design/startups, and the scheme offers up to 50% fiscal support on a pari-passu basis for approved wafer-fab projects. This national-level fiscal commitment and the re-opened application windows have been the policy backbone that attracted multiple large proposals and approvals in 2023–2025.

Between 2023 and 2025 India moved from announcements to project approvals and initial construction activity: the government has approved several major projects (including Tata-Powerchip’s Dholera fab proposal, Micron’s assembly & test investments in Gujarat, and HCL-Foxconn’s OSAT/packaging unit near Jewar), and Reuters and government press notes report cumulative approvals of multiple projects worth many billions of dollars (individual approvals in 2024–2025 ranged from hundreds of millions for OSAT plants to multi-billion dollar fab projects). These approvals mark a material step toward establishing onshore wafer fabrication and substantial downstream capacity.

Nonetheless, significant supply-chain gaps and execution risks remain. India currently lacks mature large-volume, advanced-node fabs and depends on imports for wafers, advanced lithography equipment, specialty chemicals, photomasks and many capital tools; these inputs are predominantly sourced from Taiwan, South Korea, Japan, the U.S. and selected suppliers in Europe. Wafer fabs are capital-intensive with long lead times and require a different skills mix (clean-room process engineers, maintenance technicians and specialized equipment suppliers) beyond India’s existing strengths in design and EMS. These structural gaps mean that while ATMP/OSAT and packaging can scale relatively quickly, achieving self-sufficiency for advanced logic nodes will require sustained multi-year investments and supplier localization.

Indian Semiconductor Market Dynamics

Explosive Growth in Domestic Electronics Demand to boost Indian Semiconductor Market growth

India is one of the fastest-growing electronics markets globally, driven by smartphones, consumer electronics, 5G devices, industrial automation, medical equipment, defense electronics, and data centers. India’s electronics consumption is projected to cross USD 300 billion by 2026, creating a massive pull for semiconductor components. This rising domestic demand is the strongest structural driver pushing India to develop its own semiconductor ecosystem instead of relying heavily on imports.

India hosts more than 20% of the world’s semiconductor design engineers, and nearly every major global semiconductor company (Intel, Qualcomm, Nvidia, AMD, MediaTek, Broadcom, Texas Instruments, Applied Materials) operates large R&D and design centers in India.This deep design capability is a unique advantage, enabling India to integrate design, R&D, and future manufacturing more easily than many competing countries.

Skilled workforce

India leads the world with record number of Science, Technology, Engineering and Mathematics (STEM) graduates, offering the much-needed skilled workforce required in semiconductor manufacturing, design, research, and development.

Global supply chain diversification

Traditionally concentrated in the US and its allies (South Korea, the Netherlands, Japan, and Taiwan), as well as China, the semiconductor value chain – including design, manufacturing and final product sales – has seen a shift due to pandemic-related disruptions and rising labour costs, prompting global producers to diversify away from China. India has become a preferred destination for back-end assembly and testing operations amidst this industry relocation, with potential for future front-end manufacturing. India's entry into this ecosystem is strategically significant for global supply chain diversification, given its stable political environment and vast domestic market, which are appealing factors for technology companies seeking greenfield expansion opportunities.

Expert Insight:

Experts highlight that India’s semiconductor growth is driven by booming domestic electronics demand and a strong push to reduce import dependence. With over 20% of the world’s chip design engineers and a large STEM talent base, India has a unique advantage in design-led semiconductor development. Global supply-chain diversification away from China further positions India as a preferred destination for ATMP and future fab investments. Together, these factors are accelerating India’s emergence as a strategic semiconductor hub.

Indian Semiconductor Market Segment Analysis

Based on Application, the market is segmented into Electronics, Information & Technology, Data Processing, Automotive, Industrial Machinery, and Others. Electronics segment dominated the market in 2024 and is expected to hold the largest Indian Semiconductor Market share over the forecast period. The electronics segment dominates India’s semiconductor market because India has become one of the world’s largest and fastest-growing consumers of electronic products. Every major category—smartphones, laptops, TVs, wearables, telecom equipment, EV electronics, home appliances and industrial devices—requires thousands of semiconductor components. India’s electronic goods consumption has crossed USD 100+ billion and is expected to reach about USD 300 billion by 2026, making electronics the biggest driver of semiconductor demand in the country. Since India still imports around 85–90% of its semiconductors, the rapid expansion of electronics manufacturing directly increases semiconductor consumption.

India is now the second-largest mobile phone manufacturer globally, with companies like Apple, Samsung, Xiaomi, Vivo, and Oppo producing millions of devices in India every year under the PLI (Production-Linked Incentive) scheme. Smartphones alone use multiple types of chips—processors, memory, power-management ICs, radio-frequency chips, sensors, and camera modules. This massive scale of mobile manufacturing has become the single biggest contributor to India’s semiconductor usage.

Indian Semiconductor Market Regional Insight

Gujarat has emerged as the epicenter of India’s semiconductor manufacturing ambitions. The state government has actively promoted semiconductor investments, offering infrastructure, subsidies, and incentives — and many of the early major projects under the national semiconductor push are concentrated here. The first commercial-scale wafer fab in India is being built in Dholera SIR (Special Investment Region), via a project by Tata Electronics in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC). The fab — costing ~₹91,000 crore — aims for 50,000 wafers/month capacity, likely producing power-management ICs, microcontrollers, display drivers, and logic for automotive, telecom/5G, data storage and other sectors. The idea is to build a “clustered ecosystem” — a front-end fab (in Dholera) and backend/packaging + testing units (in Sanand), supported by ancillary services: specialty gases, chemicals, clean-room technologies and supply-chain infrastructure. Gujarat’s state government itself has sought additional funds (~₹40,783 crore) through 2030–31 to develop industrial infrastructure, logistics, utilities and a robust semiconductor ecosystem in Dholera/Sanand.

Indian Semiconductor Market Competitive Landscape

India’s semiconductor competitive landscape is clustered across large announced wafer-fab projects, downstream ATMP/OSAT (assembly, testing, marking & packaging), global chip design / R&D centres, and (d) supply-chain / EMS players. Key names appearing repeatedly in approvals and news are Tata (with Powerchip/PSMC tie-up), Micron (ATMP/packaging in Gujarat), HCL–Foxconn (Jewar OSAT / display driver chip unit), plus large proposed/paused projects involving Adani–Tower and the earlier Vedanta–Foxconn attempt. Global design and R&D centres (Qualcomm, Intel, Nvidia, Broadcom, MediaTek, etc.) dominate the design ecosystem located in Bengaluru, Hyderabad and Noida. Powerchip (PSMC) Dholera fab: Tata has signed agreements and fiscal-support pacts for a major multi-fab investment in Dholera, Gujarat, reported at ≈ ₹91,000 crore (~USD 11bn) with an intended capacity cited at ~50,000 wafers starts per month (WSPM) in early disclosures. This project is the largest announced front-end investment and is intended to produce a mix of power-management, display-driver and specialty logic chips.

The Adani–Tower $10bn project in Maharashtra and earlier Vedanta–Foxconn plans were high-profile announcements; both faced material setbacks (Vedanta–Foxconn collapsed; Adani paused negotiations), illustrating the execution and commercial-viability challenges of very large fabs.

Indian Semiconductor Market Scope

Major Indian Semiconductor Key Players

1.     Tata Electronics

2.     Micron Technology India

3.     Sasken Technologies

4.     Vedanta-Foxconn Semiconductor Ltd

5.     Continental Device India Ltd (CDIL)

6.     MosChip Technologies

7.     RTX

8.     Dycotec Materials Ltd

9.     HCL–Foxconn Semiconductor JV

10.  Kaynes Semicon

11.  Bharat Electronics Ltd (BEL)

12.  Accord India Semiconductor

Frequently asked Questions:

1. What are the main factors driving India’s semiconductor growth?

Ans: Rapid growth in electronics demand, strong government incentives under the India Semiconductor Mission, a large chip design talent base, and global supply-chain diversification away from China.

2. Which Indian state is emerging as the semiconductor hub?

Ans: Gujarat is becoming the main semiconductor hub, led by Tata-PSMC’s Dholera fab and strong state incentives for infrastructure and manufacturing.

3. Which companies are leading India’s semiconductor ecosystem?

Ans: Key players include Tata Electronics, Micron, HCL–Foxconn, Kaynes Semicon, MosChip, CDIL, BEL, and global R&D centers like Intel, Qualcomm, Nvidia, MediaTek, and Broadcom.

4. How strong is India’s semiconductor design capability?

Ans: India hosts over 20% of the world’s chip design engineers, making it a global design and R&D powerhouse.