Other BriefingsIndia’s Semiconductor Market Value to Reach US$108 Billion by 2030: Report
India’s semiconductor sector is on a positive trajectory, with its end-use market projected to double from US$54 billion in 2025 to US$108 billion by 2030. A key component of this growth is expected to come from domestic localization initiatives. This rapid expansion underscores India’s rising stature in the global semiconductor ecosystem and its ambition to become a major supply chain player.
Catalysts driving India’s semiconductor market expansion
According to global financial services firm UBS, a compound annual growth rate (CAGR) of 15 percent for India’s semiconductor market is anticipated over the five-year period ending in 2030. In a report released by UBS in April 2025, the domestic semiconductor growth, which surpasses global averages, is attributed to a confluence of favorable factors for the country.
These include India’s young workforce specializing in technology, surging demand for consumer electronics, the accelerated enterprise adoption of advanced chips, and proactive policy frameworks introduced by the Indian government to stimulate local industry.
India’s position in the global semiconductor value chain
India’s present role in global semiconductor manufacturing is considered relatively modest. As of 2025, just 0.1 percent of global wafer fabrication capacity is accounted for by the country, and about 1 percent of annual global capital expenditure on semiconductor equipment is contributed by it. However, a notable 6.5 percent share of global semiconductor demand is commanded by India—a figure projected to grow as domestic consumption is expected to rise.
India’s strength is particularly recognized in semiconductor design. According to John Neuffer, president and CEO of the Semiconductor Industry Association, approximately 20 percent of the global chip design workforce is based in India, with many employed by top-tier multinational firms. This specialization in design has positioned the country strongly in high-value segments of the semiconductor ecosystem, even as overall production capacity continues to be led by China and the US.
Semiconductor supply chain diversification and strategic realignments
The evolving geopolitical environment and ongoing trade disruptions have prompted technology firms worldwide to reconfigure their supply chains. The UBS report highlights a growing shift toward the “China +1” strategy, where companies diversify their manufacturing bases to include countries like India. In this context, India is increasingly viewed as a reliable and cost-effective alternative for semiconductor assembly and testing, particularly in the back-end stages of production.
India-Singapore partnership on semiconductor manufacturing
In 2025, Singapore continues to play a pivotal role in the semiconductor industry, leading Southeast Asia in wafer fabrication and chip production. Singapore contributes 5 percent of global wafer capacity, manufactures 20 percent of semiconductor equipment, and accounts for 10 percent of total semiconductor output globally.
Meanwhile, India’s semiconductor demand is rising rapidly, driven by emerging sectors such as AI, defense, electric vehicles, and smart devices. In FY 2023–24, its semiconductor imports surged by 18.5 percent. At present, India imports roughly 90–95 percent of its semiconductor and electronics components, with major suppliers including China, Malaysia, Taiwan, Thailand, and Singapore. Singapore alone exported US$4.68 billion worth of electronic components to India in FY 2024–25.
Recognizing their complementary strengths, India and Singapore have deepened their bilateral semiconductor cooperation. During the second India–Singapore Ministerial Roundtable held in September 2024, both countries signed a Memorandum of Understanding (MoU) aimed at fostering strategic collaboration. The MoU outlines frameworks for both intergovernmental cooperation—between Singapore’s Ministry of Trade and Industry and India’s Ministry of Electronics and Information Technology (MeITY)—and business partnerships through Enterprise Singapore and the India Semiconductor Mission.
India’s policies to boost chip manufacturing
To reduce import dependency and promote self-reliance, the central government launched the India Semiconductor Mission (ISM) under the broader Semicon India Programme in March 2022. With a financial outlay of INR 760 billion (US$8.87 billion), this policy covers the entire value chain of semiconductor manufacturing—from chip design and fabrication to assembly, testing, and packaging.
Progress under the Semicon India Programme has been positive for the country. In 2024, four semiconductor manufacturing units have been approved, while an additional nine projects under the SPECS scheme have secured around US$900 million in proposed investments. Collectively, these initiatives are expected to create over 15,700 jobs nationwide. Companies such as Tata Electronics, TDK India, and Motherson Electronics are among the early movers.
READ: India’s Semiconductor Sector: Tracking Government Support and Investment Trends
Technological trends shaping the semiconductor industry
Deloitte’s 2025 Global Semiconductor Industry Outlook, published on February 4, 2025, adds further insight into the sector’s evolution, highlighting that future chip sales will be driven by advancements in generative AI and the scaling up of data center infrastructure. In contrast, demand from traditional product categories such as PCs and mobile devices is expected to remain subdued.
To stay competitive amid increasing design complexity, the industry is turning to technologically advanced approaches such as digital twins—virtual replicas of physical systems used to simulate, analyze, and optimize performance. These tools are proving essential for managing and refining multi-chiplet systems, offering enhanced design agility and operational efficiency.
Conclusion
India’s semiconductor industry is undergoing a transformative phase, fueled by strong market potential, an enabling policy environment, and increasing relevance in global supply chains. While significant hurdles remain—particularly in advanced manufacturing—the country’s expertise in design, growing domestic demand, and strategic partnerships with global leaders such as Singapore are paving the way for a more resilient and self-reliant semiconductor ecosystem.
(US$1 = INR 85.62)
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