India Semiconductor Market Research Report Forecast: (2025-2030)

Market Definition

The semiconductor is a material that possesses conductivity between a conductor and an insulator. Such materials, mostly silicon, are used in electronics to control electrical flow in devices such as chips and transistors.

Market Insights & Analysis: India Semiconductor Market (2025-30):

The India Semiconductor Market size is valued at around USD 45 billion in 2025 and is projected to reach USD 100 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 13.05% during the forecast period, i.e., 2025-30. The India Semiconductor Market is often perceived to be on an unprecedented growth path, driven by the rising Indian EV semiconductor demand, government initiatives, technological acceleration, and domestic chip manufacturing in India. The government's PLI Scheme, pressed into existence for the promotion of local manufacturing of semiconductors, has been a major impetus. This initiative aims to reduce India's dependence on semiconductor imports, with the government committing substantial financial support to attract investments in fabrication plants and R&D. A key part of this effort is India’s chip design and production initiatives, where global and domestic firms are investing in chip design, R&D, and integrated production capabilities. This has resulted in high exports from India. For instance, the semiconductor exports from India (2025) are projected to generate more than USD20 billion.

Moreover, in February 2024, the Government of India approved a proposal from Tata Electronics to build a mega semiconductor fabrication facility in Dholera, Gujarat, with PSMC. Construction of the fab shall commence later this year with an investment totaling up to USD11 billion. Additionally, the rising middle class in India, with its growing number of affordable smartphones, smart devices, and consumer electronics, is driving semiconductor consumption. Besides that, the growth in electric vehicles is a conspicuous trend as India's EV market is expected to grow at over 50% CAGR by 2030. This implies soaring demand for EV batteries and semiconductor components involved in managing power systems, charging infrastructure, and vehicle automation.

India Semiconductor Market Scope:

Additionally, the expansion of edge computing and 5G infrastructure has greatly enhanced the demand for advanced semiconductor technologies. The demand for high-performance chips, increased by 5G, is likely to enhance seamless connectivity, enable reduced latency, and enhance faster data processing, which is beneficial for the Indian Semiconductor Industry. Moreover, as AI and machine learning technologies gain traction in healthcare and automotive applications, suppliers of semiconductor solutions will see huge market opportunities.

The other fastest-rising trend is the partnership with an established international leader in semiconductors to channel investment, expertise, and cutting-edge technology into India's notional semiconductor ecosystem. The community of several companies in semiconductor design and innovation is facing competition. For instance, SiFive and Western Digital are building custom processors on the RISC-V model for many sectors, including embedded systems, AI, and data storage. This ecosystem transformation allows India to become a leading player in the Global Semiconductor Industry.

India Semiconductor Market Driver:

Rising Domestic Chip Manufacturing – The market growth is driven by the growing production of chips locally to avoid import dependence, which is increasing the demand for semiconductors, as these are an important raw material for the manufacturing of chips. For instance, in 2025, ISRO built India’s Vikram-32 chip microprocessor, which is highly energy efficient, with faster performance. Additionally, Tata Electronics (Assam) alone produced about 18 billion units of chips annually, which requires a substantial amount of semiconductors, thus boosting market size & volume.

Moreover, the Indian chip manufacturing market witnessed a significant expansion in the country, backed by the efforts of companies to increase their production capacity in different parts of the country. For instance, in 2025, ASIP Technologies (Andhra Pradesh) collaborated with APACT Co. Ltd. (South Korea) and plans to increase the annual production capacity to about 95 million units per year. Similarly, 3D Glass Solutions, Inc. (Orissa) partnered with tech giants of the US, including Intel, to establish an advanced facility for semiconductor packaging with an expected annual production capacity of 50 million units. Furthermore, Polymatech Electronics (2025) is establishing the Chhattisgarh semiconductor hub with a Gallium Nitride (GaN) chip fabrication unit, with an initial investment of about 130 million.  Such expansion is driving the market growth.

India Semiconductor Market Opportunity:

Favorable Government Policies for the Semiconductor Sector – The Indian government is actively supporting this market through significant investments by drafting various schemes and incentives for increasing the local production in the country. For instance, in 2021, the government introduced a mission called the India Semiconductor Mission (ISM) to increase the chip and display fabrication facilities across the country, with an investment of about USD10 billion to financially support the manufacturing and fabrication companies. Additionally, the ISM 2.0 Semiconductor Mission India (2025) aims to increase the semiconductor ecosystem in the country by supporting the Indian semiconductor supply chain trends.

Moreover, the Design Linked Incentive (DLI) Scheme (2021), launched by the Indian government, helps the manufacturing companies to obtain a substantial amount of incentives and subsidies to promote the domestic manufacturing of chips and Semiconductors in India. For instance, the DLI scheme provides a 50% subsidy on the design costs and 4-5% incentives for their sales. These kinds of semiconductor investments are providing ample growth opportunities and are contributing to the potential growth of the Indian Semiconductor Industry.

India Semiconductor Market Challenge:

High Cost Impeding Market Growth & Expansion – The absence of an extended-term plan for huge capital expenses in semiconductor production centers is a major challenge for the growth & development of the India Semiconductor Market. The cost of manufacturing this semiconductor can cost USD 10 to 20 billion or even more, depending on its size and generation. This is mostly due to the technology’s complexity, which drives up production costs by requiring expensive equipment and a cleanroom.

In India, only a few players, such as Vedanta-Foxconn and ISMC, have begun the groundwork for setting up the fabs, with manufacturing expected to start by 2025. Also, there is a dearth of deep domestic experience to allow for the fabrication of semiconductors, leading to a reliance on foreign technology and partnerships that further escalate costs.

India Semiconductor Market Trend:

Integration of AI & IoT in Semiconductor Manufacturing Process – The India Semiconductor Market is rapidly transforming due to the integration of advanced technologies like AI and IoT in semiconductor fabs to increase their performance, automation, and efficiency. In semiconductor chip design, AI is used in Electronic Device Automation (EDA) tools, which reduces errors and optimizes the outcomes as compared to traditional semiconductor-based chips.

Several major Semiconductor manufacturing companies in India, such as Calligo Tech, Cientra, Netrasemi, Mindgrove Technologies, etc., have actively started producing AI & IoT-enabled semiconductor products, such as chips, transistors, sensors, etc., in the country. For instance, in 2024, Mindgrove Technologies launched its first IoT-enabled microcontroller chip. Similarly, in 2024, Netrasemi company received about USD13 million to establish a full-fledged manufacturing facility to produce Edge-AI chip semiconductor, which are highly efficient. Such integration of advanced technologies is changing market dynamics and providing a solid foundation for the further growth & expansion of the Semiconductor Market in India.

India Semiconductor Market (2025-30): Segmentation Analysis

The India Semiconductor Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Application:

• Networking & Communications
• Data Processing
• Industrial
• Consumer Electronics
• Automotive
• Government

Consumer electronics are the largest segment based on application, accounting for about 45% market share. The growing Indian Electronics Market is the result of increasing sales of smartphones, laptops, tablets, wearables, and other smart devices. Increases in the ICE market are induced by a large and growing middle-class population and rising Internet penetration, which has led to a jump in consumer electronics consumption. In 2023, the Indian smartphone market consumed above 140 million devices, and each of these smartphones requires advanced semiconductor components governing processing, connectivity, and power management.

Apart from that, growth in the smart home market and the market for wearables further fuels the demand for semiconductors. Companies like Samsung, Xiaomi, and Apple are investing heavily in local assembly and manufacturing, multiplying the demand for semiconductors in India. As the adoption of technology continues, this sector will keep driving semiconductor consumption.

Based on Equipment:

• Front-end Equipment
• Back-end Equipment

Among the components of the India Semiconductor Market, the front-end equipment category contributes around 65% to the overall market volume. Front-end equipment is employed in the initial stages of semiconductor fabrication in wafer cleaning, etching, deposition, and lithography processes. This equipment is imperative before subjecting the semiconductor wafer to back-end processing, as the semiconductor wafer must be shaped. As global technological development processes shifted toward smaller nodes, demand for sophisticated front-end equipment increased.

Leading companies in the sector include Applied Materials and ASML, which supply the cutting-edge machinery needed to produce semiconductors. In India, the build-up of local Indian semiconductor Fabs is supported by policy, the Vedanta-Foxconn project. This is increasing the demand for front-end equipment to establish fabrication capabilities, positioning the segment as the predominant force in India's semiconductor ecosystem.

India Semiconductor Industry Recent Development:

• 2025: HCL Technologies and Foxconn got approval from the Indian government for a joint venture to establish a semiconductor manufacturing plant near Jewar Airport in Uttar Pradesh. The facility is designed to produce 36 million display driver chips per year and is expected to commence commercial production in 2027.

• 2025: Applied Materials Inc. announced plans to establish a semiconductor innovation hub in Bengaluru. The center aims to develop and commercialize technologies for semiconductor manufacturing equipment, with potential investments exceeding USD2 billion.

Gain a Competitive Edge with Our India Semiconductor Market Report

1. India Semiconductor Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.

2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. India Semiconductor Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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