Introduction
India is rapidly emerging as a global hub for semiconductor innovation and manufacturing. According to the Indian Electronics and Semiconductor Association (IESA), the country’s semiconductor market is projected to reach an impressive $103.4 billion by 2030.
This growth is expected to power India’s burgeoning electronics market, which is set to surpass $400 billion.
The announcement was made at the two-day ‘Utkarsh Odisha – Make in Odisha Conclave 2025,’ held in Bhubaneswar, where industry leaders and policymakers gathered to discuss India’s semiconductor future.
Key Highlights of India’s Semiconductor Market
Market Size and Growth
India’s semiconductor market, currently valued at $52 billion in 2024-25, is expected to grow at a compound annual growth rate (CAGR) of 13% to reach $103.4 billion by 2030.
Government Incentives
Targeted government programs like the ‘Semicon India’ initiative and Design Linked Incentive (DLI) scheme are fueling growth.
Investment Boom
IESA member companies have committed investments exceeding $21 billion over the past year.
Key Sectors Driving Demand
Automotive, consumer electronics, and industrial applications contribute significantly to semiconductor demand, with mobile handsets, IT, and industrial electronics accounting for 70% of revenue.
Recommendations for Progress
Industry experts emphasize boosting local manufacturing, enhancing R&D, and achieving a 40% local value addition target by 2030.
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India’s Semiconductor Growth: A Strategic Push
India’s semiconductor sector has witnessed rapid progress thanks to the government’s policy framework, industry collaboration, and increasing demand for electronic products.
The sector plays a pivotal role in powering industries such as handsets, IT, telecom, consumer electronics, automotive, aerospace, and defense.
Dr. V Veerappan, Chairman of IESA, highlighted that while India’s current semiconductor consumption stands at $52 billion, the robust growth across sectors provides opportunities for value addition and technological advancements.
“Sectors like automotive and industrial electronics offer significant value addition opportunities,” Dr. Veerappan said.
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Government Policies Driving the Semiconductor Boom
The Indian government’s strategic initiatives have been instrumental in accelerating semiconductor growth. Key programs include:
Semicon India Programme: An ambitious $10 billion incentive plan to attract global semiconductor giants to establish manufacturing and R&D facilities in India.
Design Linked Incentive (DLI) Scheme: Aimed at promoting domestic design and production of semiconductors.
Production Linked Incentive (PLI) Scheme: Focused on achieving 40% local value addition in electronics manufacturing by 2030.
These initiatives have attracted major investments. They are driving the setup of fabrication facilities (Fabs) and outsourced semiconductor assembly and testing (OSAT) units in India.
The Role of R&D and Local Sourcing
The India Semiconductor Market Report 2030 highlights the importance of research and development (R&D).
It stresses the need to focus on high-demand products for local and global markets.
The report also urges better local sourcing of key components like processors, memory, connectivity, and power solutions.
“Innovative R&D will be key to making India a leader in the global semiconductor space,” said Ashok Chandak, President of IESA.
Sectors Driving Semiconductor Demand
India’s semiconductor market is growing fast. Several industries are fueling this demand:
Mobile Handsets and IT: Rising smartphone use and IT hardware adoption make these the biggest consumers.
Automotive Electronics: Electric vehicles (EVs) and advanced driver-assistance systems (ADAS) need high-performance semiconductors.
Consumer Electronics: Smart TVs, wearables, and home automation devices are driving demand.
Industrial Electronics: Automation and digital transformation in manufacturing create new opportunities.
Aerospace and Defense: Advanced communication systems and security applications require more semiconductors.
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Recommendations for Achieving India’s Semiconductor Vision
The report lays out actionable steps to achieve India’s semiconductor ambitions:
- Extend the ‘Semicon India’ program beyond the initial $10 billion outlay.
- Modify the DLI scheme to make it more accessible to small and medium enterprises (SMEs).
- Target 25% local value addition in electronics manufacturing by 2025-26, rising to 40% by 2030.
- Strengthen partnerships between academia, industry, and government for R&D excellence.
- Focus on building a skilled workforce to support the semiconductor ecosystem.
India’s Global Semiconductor Ambitions
India’s strategic location, growing domestic demand, and supportive policies make it an attractive destination for global semiconductor players.
The government’s focus on building a resilient supply chain and reducing dependency on imports aligns with its vision to make India a global semiconductor powerhouse.
The ‘Utkarsh Odisha – Make in Odisha Conclave 2025’ highlighted the collaborative efforts required to transform India’s semiconductor landscape.
Union Minister Ashwini Vaishnaw lauded the industry’s progress and reaffirmed the government’s commitment to supporting semiconductor manufacturing.
With sustained investment, innovation, and policy support, India is well on its way to becoming a key player in the global semiconductor market.
