India's semiconductor market set to triple by 2030, reach $110 billion

India is rapidly transforming from a semiconductor-consuming nation to a major global manufacturing hub, with the domestic chip market projected to grow from $38 billion in 2023 to $100–110 billion by 2030. Backed by strategic policy initiatives and increasing global demand, the country is positioning itself as a critical player in the trillion-dollar global semiconductor value chain.

According to an official statement, this growth is being fuelled by initiatives such as the India Semiconductor Mission, launched with an outlay of ₹76,000 crore, and the Semicon India Programme. Global collaborations like the Initiative on Critical and Emerging Technology (iCET) have further enhanced India’s stake in the sector.

India’s semiconductor ambitions are also tied to a broader strategy of reducing dependence on foreign suppliers and building technological self-reliance. The upcoming Semicon India 2025 event, to be held in New Delhi from September 2 to 4, will underscore this shift. The fourth edition of the event will see participation from 18 countries, bringing together industry leaders, innovators, academia, and government representatives to push forward collaboration and innovation across the semiconductor supply chain.

The country’s chip manufacturing infrastructure is gradually taking shape. In May 2025, the Union Cabinet approved another semiconductor fabrication facility under the India Semiconductor Mission, a joint venture between HCL and Foxconn. This plant will manufacture display driver chips for devices such as mobile phones, laptops, cars, and PCs. Designed for a capacity of 20,000 wafers per month, it is expected to deliver 36 million chips monthly.

India’s first indigenous semiconductor chip is also slated for production this year, with five fabrication units currently under construction. These developments mark a significant milestone in India's efforts to establish a complete and self-reliant semiconductor ecosystem.

On the supply chain front, India is leveraging its strengths in three key areas:

• Equipment: A large base of Micro, Small, and Medium Enterprises (MSMEs) is being tapped to produce components essential for semiconductor manufacturing equipment.
• Materials: India’s natural reserves of chemicals, minerals, and industrial gases provide the necessary raw materials for chip production.
• Services and Talent: With a deep talent pool in research and development, logistics, and cutting-edge technologies like AI, big data, IoT, and cloud computing, India is well-placed to offer value-added services to the global semiconductor industry.

To further support industry demands, the government has announced a plan to train 85,000 engineers in advanced semiconductor and electronics manufacturing.

With global supply chains still vulnerable due to their heavy concentration in a few regions, India’s rise offers a viable alternative. As the global semiconductor market heads towards a $1 trillion valuation by 2030, India is poised to occupy a significant share, not just as a market, but as a production powerhouse.