India’s semiconductor industry is poised for significant expansion, with market size expected to more than double and reach between USD 100–110 billion (approximately ₹9.6 lakh crore) by 2030, according to industry projections. The sector, currently valued at around USD 45–50 billion for FY 2024–25, has grown from USD 38 billion in 2023 and is gaining momentum as the country deepens its role in the global electronics value chain.
A government statement released has highlighted the sector’s rising importance, referencing past disruptions—such as the global chip shortage during the COVID-19 pandemic—that severely impacted sectors like automotive and consumer electronics. The report emphasized the need for India to become a dependable alternative in the global semiconductor supply chain, currently dominated by Taiwan, South Korea, Japan, China, and the United States. Taiwan alone is responsible for producing more than 60% of the world’s semiconductors, including nearly 90% of the most advanced chips, leaving global supply chains exposed to geopolitical and natural risks.
With global demand for semiconductors projected to hit USD 1 trillion by 2030, India is positioning itself as a key contributor in three core areas—equipment, materials, and services including research and development. The country’s strong MSME base, abundant supply of critical chemicals and minerals, and large talent pool in emerging technologies such as AI, big data, cloud computing, and IoT provide a solid foundation for growth.
To accelerate domestic capabilities, the Indian government launched the India Semiconductor Mission (ISM) in December 2021 with a funding allocation of ₹76,000 crore. The program supports investments in chip manufacturing, display units, and design. Major industry players have already committed more than ₹1.55 lakh crore in investments. These include Micron Technology (USA), Tata Electronics in collaboration with Taiwan’s PSMC, CG Power with Renesas, TSAT, Kaynes Semicon, and the HCL-Foxconn joint venture.
As part of its efforts to support innovation, the government has also allocated ₹1,000 crore for the Design Linked Incentive (DLI) scheme, aimed at promoting chip design capabilities. So far, ₹234 crore has been committed to support 22 approved chip design projects, which will serve critical applications including mobile communication, automotive electronics, satellite systems, surveillance infrastructure, and smart devices.
The government continues to promote India’s semiconductor roadmap through Semicon India, a major industry event hosted in collaboration with global body SEMI (Semiconductor Equipment and Materials International). The fourth edition of this flagship event will be held from September 2–4, 2025 at Yashobhoomi (IICC), New Delhi, co-hosted by ISM and SEMI. The platform will bring together leading industry figures, investors, policymakers, academic institutions, and startups to shape India’s growing influence in the global semiconductor landscape.
