India Semiconductor Market Key Takeaways

• The India semiconductor market size was valued at USD 54 billion in 2025 and is projected to grow from USD 59 billion in 2026 to USD 92 billion by 2032.
• The industry is projected to sustain growth at a steady CAGR of 7.69% during 2026-2032.
• By application, consumer electronics holds a significant share of about 45% in 2026.
• By equipment type, front-end equipment accounted for a significant share of about 70% in 2026.
• The industry is highly fragmented. However, the top five players collectively account for nearly 10% share.

India Semiconductor Market Size and Outlook

India semiconductor market size was valued at USD 54 billion in 2025 and is projected to grow from USD 59 billion in 2026 to USD 92 billion by 2032. Along with this, the market is estimated to grow at a CAGR of around 7.69% during the forecast period, i.e., 2026-32.

The market is undergoing a major transformation as the country moves from being primarily a semiconductor design and consumption hub toward becoming a manufacturing, packaging, and supply-chain destination. Rising demand from smartphones, automotive electronics, telecommunications, artificial intelligence, data centers, and industrial applications is creating strong growth opportunities.

By 2026, the Government of India had approved 10 semiconductor projects with proposed investments of approximately USD 18.7 billion, including semiconductor fabrication plants, advanced packaging units, memory packaging facilities, and compound semiconductor projects. These investments are expected to strengthen domestic production capabilities and integrate India into global semiconductor supply chains.

Additionally, the increasing adoption of electric vehicles, cloud computing, and data center infrastructure is creating demand for advanced semiconductor solutions. Automotive electrification is driving the need for power semiconductors, microcontrollers, and battery management systems, while AI applications are increasing requirements for high-performance computing components.

Overall, strong government support, rising investment commitments, expanding electronics manufacturing, and growing demand from emerging technologies are expected to accelerate India’s semiconductor industry growth. These developments will help India build a resilient semiconductor ecosystem, attract global investments, and strengthen its position in the global semiconductor value chain.

India Semiconductor Market Key Indicators

• India’s electronics production increased from approximately USD 1.99 billion in FY2014-15 to USD 13.74 billion in FY2025-26, reflecting strong expansion in domestic electronics manufacturing. Electronics exports also increased to approximately USD 4.44 billion in FY2025-26, while the sector recorded USD 22.2 billion in exports during the first half of FY2025-26. The rapid expansion of electronics manufacturing increases semiconductor consumption across smartphones, IT hardware, consumer electronics, industrial equipment, and connected devices, thereby supporting growth in India’s semiconductor market.
• India’s mobile phone production increased from approximately USD 188.6 million in FY2014-15 to USD 6.57 billion in FY2025-26, representing a more than 30-fold increase. India now has more than 300 mobile manufacturing units, compared with only two in 2014. The expansion of domestic smartphone manufacturing increases demand for processors, memory, power-management ICs, display drivers, connectivity chips, and other semiconductor components, directly supporting semiconductor consumption in India.
• India’s electronics manufacturing sector has attracted more than USD 4 billion in foreign direct investment since FY2020-21, demonstrating increasing participation by global electronics manufacturers and component suppliers. Rising foreign investment is expanding manufacturing capacity and localization of electronic products, which creates additional downstream demand for semiconductor components and strengthens India's domestic semiconductor supply chain.
• As of June 2026, India had 12 semiconductor manufacturing projects approved with an investment pipeline of approximately USD 17.18 billion, comprising one semiconductor fabrication unit, two compound-semiconductor fabrication units, and nine semiconductor packaging units. The scale of committed investment is accelerating domestic fabrication and advanced packaging capacity, reducing dependence on imported semiconductor manufacturing services and strengthening the overall India semiconductor ecosystem.
• India’s semiconductor design ecosystem has supported 24 design projects, provided 105 companies with access to advanced Electronic Design Automation (EDA) tools, and completed 23 chip tape-outs as of June 2026. The expansion of domestic chip-design capabilities increases the pipeline of Indian-designed ICs and SoCs for automotive, telecommunications, AI, IoT, industrial, and consumer applications, supporting higher domestic value addition across the semiconductor value chain.
• The Tata Electronics semiconductor fabrication facility in Gujarat involves an investment of approximately USD 9.59 billion, making it one of the largest individual semiconductor manufacturing investments in India. The establishment of a large-scale fabrication facility is expected to create domestic wafer-manufacturing capacity and stimulate demand for semiconductor materials, equipment, packaging, testing, and supporting services, thereby strengthening the domestic semiconductor manufacturing ecosystem.
• India’s Electronics Components Manufacturing Scheme (ECMS) has an increased outlay of approximately USD 4.19 billion, following the government’s push to localize electronic components and reduce import dependence. Greater domestic production of components such as printed circuit boards, camera modules, passive components, and other electronic subassemblies expands the local electronics value chain and creates a stronger customer base for domestically manufactured semiconductor devices.
• Under India Semiconductor Mission 2.0, the government allocated approximately USD 104.8 million for FY2026-27, with emphasis on semiconductor equipment and materials manufacturing, indigenous semiconductor intellectual property, industry-led research, and workforce development. This policy support is expected to improve the depth of India's semiconductor ecosystem beyond fabrication and packaging, supporting long-term market development.
• The development of electronics manufacturing clusters is also creating supporting infrastructure for semiconductor-intensive industries. For instance, the Jewar Electronics Manufacturing Cluster involves an estimated investment of approximately USD 43.7 million, including a central government contribution of approximately USD 15.1 million, and is being developed across 206 acres. Such manufacturing clusters improve supplier proximity and ecosystem integration, facilitating semiconductor adoption across high-value electronics manufacturing.

India Semiconductor Market Scope

India Semiconductor Market Growth Drivers

Rising Domestic Chip Manufacturing Drives India Semiconductor Growth

Rising domestic chip manufacturing is emerging as a significant driver of India’s semiconductor market by expanding local production capabilities, attracting large-scale investments, and reducing dependence on imported chips. As demand for processors, memory devices, power management ICs, and microcontrollers increases across consumer electronics, automotive, telecommunications, and industrial applications, India is accelerating investments to establish a robust domestic chip manufacturing ecosystem.

In 2024, the Government of India approved multiple chip manufacturing projects, including Tata Electronics’ chip fabrication facility in Dholera, Gujarat, Tata Electronics’ semiconductor unit in Assam, and CG Power’s chip manufacturing facility in Gujarat. These approved projects represent investments of approximately USD 18 billion, significantly strengthening India's domestic chip production infrastructure. Additionally, Kaynes Semicon received approval for a chip manufacturing and packaging facility in Sanand, Gujarat, involving an investment of approximately USD 395 million, further expanding the country's manufacturing ecosystem.

Looking ahead, future phases of the India Semiconductor Mission will continue to promote investments in chip fabrication, advanced packaging, chip design, and manufacturing infrastructure, strengthening India's self-reliance. Consequently, rising domestic chip manufacturing will improve supply-chain resilience, attract global technology partnerships, and accelerate the long-term growth of India’s semiconductor market.