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India’s semiconductor industry is poised for a dramatic transformation, with market size expected to more than double to ₹9.6 lakh crore (approximately $110 billion) by 2030. This projection, released on August 3, 2025, underscores the country’s strategic push to become a global semiconductor powerhouse, backed by robust government initiatives, rising domestic demand, and geopolitical shifts in supply chain dynamics.
Key Growth Projections and Market Size
The Indian semiconductor market was valued at ₹3.8 lakh crore ($38 billion) in 2023.
It grew to ₹4.5–5 lakh crore ($45–50 billion) in 2024–25.
By 2030, it is projected to reach ₹9.6 lakh crore ($100–110 billion), reflecting a compound annual growth rate (CAGR) of over 13 percent.
This growth is driven by surging demand across mobile handsets, IT hardware, industrial electronics, automotive, and consumer devices—segments that collectively account for nearly 70 percent of the industry’s revenue.
Strategic Government Initiatives
India’s rise in the semiconductor space is underpinned by several high-impact policy measures:
India Semiconductor Mission
A ₹76,000 crore initiative aimed at building domestic chip manufacturing capabilities.
Focuses on fabrication units, design-linked incentives, and ecosystem development.
SEMICON India Programme
A flagship platform to attract global partnerships and showcase India’s manufacturing potential.
The 2025 edition, scheduled for September 2–4 in Delhi, will host participants from 18 countries.
Talent Development
Government plans to train 85,000 engineers in advanced semiconductor and electronics manufacturing.
Aimed at building a skilled workforce to support fabs, OSATs, and R&D centers.
New Manufacturing Units
Approval of a joint venture between HCL and Foxconn to produce display driver chips.
Five additional production units are under construction, signaling a shift from consumption to manufacturing.
Supply Chain Diversification and Global Positioning
India’s semiconductor ambitions are also shaped by global supply chain vulnerabilities exposed during the COVID-19 pandemic. With Taiwan currently producing over 60 percent of the world’s semiconductors, including 90 percent of advanced chips, countries are seeking alternatives to reduce dependency.
India is emerging as a trusted partner in this global realignment, offering:
A strong MSME base for component manufacturing.
Rich reserves of chemicals, minerals, and gases essential for chip production.
Expertise in AI, big data, cloud computing, and IoT to support services and R&D.
Industry Response and Investment Momentum
The industry has responded enthusiastically to government incentives:
Over $21 billion in investment commitments from IESA member companies in the past year.
Focus on high-priority products such as smartphones, consumer durables, routers, and hearables.
Push for local value addition with targets of 25 percent by 2025–26 and 40 percent by 2030.
IESA has also recommended continuity in the semiconductor incentive scheme and enhancements to the design-linked incentive program to sustain momentum.
Challenges and the Road Ahead
While the outlook is promising, India must address key challenges:
Ensuring timely execution of approved projects.
Building robust infrastructure for logistics and utilities.
Creating unified schemes for product development and innovation.
Nonetheless, the trajectory is clear: India is no longer just a consumer in the global chip ecosystem—it is rapidly becoming a manufacturer, innovator, and strategic partner.
Conclusion
India’s semiconductor market is on the cusp of a revolution. With policy support, industry collaboration, and global demand converging, the country is well-positioned to claim a significant share of the projected $1 trillion global semiconductor market by 2030. The chip revolution is not just coming—it’s already underway in Bharat.
Source: The Economic Times – August 3, 2025
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