India Integrated Circuits (IC) Market Outlook to 2035

The report titled “India Integrated Circuits (IC) Market Outlook to 2035 – By Product Type, By Application, By End-Use Industry, By Manufacturing & Sourcing Model, and By Region” provides a comprehensive analysis of the integrated circuits industry in India. The report covers an overview and genesis of the market, overall market size in terms of value, detailed market segmentation; trends and developments, regulatory and policy landscape, buyer-level demand profiling, key issues and challenges, and competitive landscape including competition scenario, cross-comparison, opportunities and bottlenecks, and company profiling of major players operating in the India IC market. The report concludes with future market projections based on electronics manufacturing growth, semiconductor policy incentives, rising domestic consumption of electronic devices, automotive electrification, industrial automation, data center expansion, and case-based illustrations highlighting the major opportunities and cautions shaping the market through 2035.

India Integrated Circuits (IC) Market Overview and Size

The India integrated circuits market is valued at approximately ~USD ~ billion, representing the demand for semiconductor ICs including logic ICs, memory ICs, analog ICs, microprocessors, microcontrollers, and power management ICs used across consumer electronics, automotive, industrial, telecom, and computing applications. Integrated circuits form the core building blocks of modern electronic systems, enabling data processing, connectivity, power control, and intelligent functionality across devices and infrastructure.

The market is anchored by India’s rapidly expanding electronics consumption base, strong growth in smartphone and consumer electronics penetration, rising automotive electronics content, increasing deployment of industrial automation and smart infrastructure, and the expansion of telecom networks and data centers. While India remains predominantly dependent on imports for IC supply, the market is undergoing structural change driven by policy-led initiatives aimed at strengthening domestic semiconductor design, assembly, testing, and packaging capabilities.

Western and Southern India represent the largest demand centers for integrated circuits, driven by high concentration of electronics manufacturing clusters, automotive OEMs and suppliers, industrial hubs, and technology-driven urban markets. States such as Maharashtra, Karnataka, Tamil Nadu, and Telangana lead demand due to their strong presence of EMS players, automotive manufacturing, R&D centers, and startup ecosystems. Northern India shows growing IC demand supported by consumer electronics assembly, telecom equipment deployment, and public digital infrastructure rollout. Eastern India remains relatively smaller but is expected to gain traction as electronics manufacturing spreads to new geographies supported by state-level incentive programs and infrastructure development.

What Factors are Leading to the Growth of the India Integrated Circuits (IC) Market:

Rapid expansion of electronics manufacturing and domestic consumption strengthens IC demand fundamentals: India’s electronics manufacturing ecosystem is expanding rapidly, supported by rising domestic consumption of smartphones, wearables, consumer appliances, IT hardware, and connected devices. Production-linked incentive (PLI) schemes and import substitution policies have encouraged global and domestic OEMs to scale local assembly and manufacturing operations. This directly increases demand for a wide range of integrated circuits used in display drivers, processors, memory, power management, and connectivity modules. As device complexity increases and feature differentiation becomes more electronics-led, IC content per device continues to rise, strengthening long-term volume growth.

Automotive electrification, connectivity, and safety systems accelerate IC usage per vehicle: The Indian automotive sector is undergoing a structural transition with higher penetration of electronic control units (ECUs), electric vehicle power electronics, advanced driver assistance systems (ADAS), infotainment, and connected vehicle platforms. These trends significantly increase IC usage per vehicle across passenger cars, two-wheelers, commercial vehicles, and electric mobility solutions. Power ICs, microcontrollers, sensors, and analog chips are increasingly critical for battery management, motor control, safety systems, and vehicle networking. As OEMs localize vehicle platforms and electronics sourcing, demand for automotive-grade integrated circuits continues to scale.

Government policy support for semiconductor manufacturing and design ecosystem improves long-term supply outlook: India’s semiconductor policy framework, including incentives for fabs, OSAT (outsourced semiconductor assembly and test) facilities, and design-linked initiatives, is reshaping the strategic importance of integrated circuits within the national industrial agenda. While advanced wafer fabrication remains capital-intensive and long-gestation, progress in chip design, packaging, testing, and specialty semiconductor manufacturing is expected to gradually reduce dependency risks and improve supply chain resilience. Public investment, global partnerships, and skill development initiatives enhance confidence in India’s long-term IC market growth trajectory.

Which Industry Challenges Have Impacted the Growth of the India Integrated Circuits (IC) Market:

High dependence on imports and exposure to global semiconductor supply cycles impacts availability and pricing stability: India remains heavily dependent on imported integrated circuits, particularly for advanced logic, memory, and automotive-grade semiconductors. Global supply-demand imbalances, geopolitical tensions, fab capacity constraints, and export controls directly affect IC availability and lead times for Indian OEMs and EMS players. During periods of global shortages, Indian buyers—often lower in global allocation priority compared to large-scale markets—face extended lead times, allocation risks, and price volatility. This dependency reduces procurement predictability, increases working capital requirements, and constrains production planning across electronics, automotive, and industrial segments.

Limited domestic wafer fabrication and ecosystem depth constrains local value addition and responsiveness: While India has strong capabilities in semiconductor design and growing momentum in assembly, testing, and packaging (ATMP/OSAT), the absence of large-scale, commercially mature wafer fabrication limits end-to-end ecosystem maturity. OEMs and system integrators must rely on offshore fabs for front-end manufacturing, resulting in longer supply chains and reduced responsiveness to demand fluctuations or design changes. This structural gap affects time-to-market for new products, increases logistics complexity, and limits India’s ability to rapidly scale IC supply in response to domestic demand surges.

Cost sensitivity and margin pressures among OEMs limit adoption of higher-value and advanced IC solutions: A significant portion of India’s electronics and automotive market is highly price-sensitive, with OEMs operating under tight margin constraints. This often leads to prioritization of cost-optimized or legacy IC nodes over higher-performance or next-generation semiconductor solutions. While advanced ICs enable improved functionality, efficiency, and intelligence, their higher costs and qualification requirements can slow adoption, particularly in mass-market consumer electronics, two-wheelers, and entry-level industrial equipment. This dynamic moderates value growth and delays technology upgradation cycles within the market.

What are the Regulations and Initiatives which have Governed the Market:

Semiconductor policy frameworks and incentive schemes supporting domestic manufacturing and design capabilities: The Government of India has introduced comprehensive policy initiatives to strengthen the semiconductor ecosystem, including incentives for wafer fabrication, semiconductor packaging and testing units, and chip design enablement. Programs under the India Semiconductor Mission aim to attract global investments, support domestic players, and reduce long-term import dependency. These initiatives influence capital allocation decisions, partnership structures, and location strategies for semiconductor companies evaluating India as a manufacturing and design destination.

Production-linked incentive (PLI) schemes and electronics manufacturing policies driving downstream IC demand: PLI schemes for smartphones, IT hardware, automotive electronics, and consumer appliances indirectly shape integrated circuit demand by expanding domestic electronics manufacturing capacity. As OEMs scale local production, demand for ICs across processors, memory, power management, and connectivity solutions increases. However, localization norms, value-add thresholds, and compliance documentation requirements also influence sourcing strategies and supplier qualification decisions across the value chain.

Customs duties, import regulations, and trade policies impacting sourcing economics and procurement strategies: Customs duty structures, exemptions for capital equipment, and differential tariffs on electronic components influence IC sourcing decisions and landed costs. Changes in import duties or trade agreements can alter cost competitiveness between imported ICs and locally assembled or packaged alternatives. For OEMs operating at scale, these regulatory variables play a significant role in vendor selection, pricing negotiations, and long-term supply agreements.

India Integrated Circuits (IC) Market Segmentation

By IC Type: Logic and processor-related ICs hold dominance. This is because India’s electronics demand is heavily driven by smartphones, consumer devices, computing hardware, telecom equipment, and embedded systems used across automotive and industrial applications. Logic ICs, microprocessors, and microcontrollers form the core of device intelligence, control, and data processing. While memory ICs remain critical, a large share of value addition in India’s market is driven by application-specific logic, power management, and mixed-signal ICs used in mass-volume electronics manufacturing. Power and analog ICs continue to see rising traction due to EV adoption, renewable energy systems, and industrial automation.

Logic ICs & Processors (MPUs, MCUs, ASICs)  ~40 %
Memory ICs (DRAM, NAND, NOR)  ~25 %
Analog ICs  ~15 %
Power Management ICs  ~15 %
Other ICs (Sensors, RF, Interface ICs)  ~5 %

By End-Use Industry: Consumer electronics and telecom dominate the India IC market. Consumer electronics and telecom OEMs account for the largest share of IC demand due to high device volumes, short product cycles, and rapid feature evolution. Smartphones, wearables, set-top boxes, networking equipment, and IT hardware require a wide mix of processors, memory, connectivity, and power ICs. Automotive and industrial segments are growing at a faster pace, supported by vehicle electrification, safety systems, factory automation, and smart infrastructure, though they remain smaller in volume compared to consumer-driven demand.

Consumer Electronics & IT Hardware  ~45 %
Telecom & Networking  ~20 %
Automotive  ~15 %
Industrial & Automation  ~15 %
Others (Healthcare, Defense, Energy)  ~5 %

Competitive Landscape in India Integrated Circuits (IC) Market

The India integrated circuits market exhibits low domestic concentration and high dependence on global suppliers, with dominance of multinational semiconductor companies supplying chips through direct OEM relationships, authorized distributors, and EMS-linked procurement channels. Market leadership is driven by technology depth, product reliability, long-term supply assurance, qualification track record, and application engineering support. While global players dominate advanced IC categories, domestic companies are gradually strengthening positions in design services, specialty ICs, and assembly and testing operations. Competition is shaped by global allocation priorities, pricing power, lifecycle support, and ecosystem partnerships rather than local manufacturing scale.

Some of the Recent Competitor Trends and Key Information About Competitors Include:

Intel Corporation: Intel maintains a strong presence in India through processor demand for data centers, enterprise computing, and embedded applications, alongside a significant semiconductor design and R&D footprint. While manufacturing is offshore, Intel’s influence in high-performance computing, server processors, and advanced packaging technologies continues to shape India’s IC consumption patterns, particularly in cloud and enterprise infrastructure.

Qualcomm Incorporated: Qualcomm plays a central role in India’s smartphone and connected device ecosystem, supplying application processors, modems, and connectivity solutions across premium and mid-range devices. Its competitive strength lies in system-level integration, power efficiency, and strong OEM relationships, reinforcing dominance in mobile and wireless platforms as India continues to expand 5G and smart device adoption.

Texas Instruments: Texas Instruments remains a key supplier of analog and power management ICs used across industrial, automotive, and consumer electronics applications. Its long product lifecycles, reliability focus, and broad catalog make it highly relevant for industrial automation, EV power electronics, and embedded systems in India, where lifecycle stability and qualification depth are critical.

NXP Semiconductors: NXP has a strong footprint in automotive-grade semiconductors, secure connectivity, and industrial control solutions. The company benefits from rising electronics content in vehicles, EV charging infrastructure, and smart industrial systems in India, supported by its expertise in safety-certified and secure IC platforms.

Samsung Electronics & SK hynix: These players dominate memory IC supply into India, supporting smartphones, consumer electronics, and computing devices. Their competitiveness is driven by scale, technology leadership in DRAM and NAND, and ability to support high-volume OEM programs, though exposure to global memory price cycles introduces volatility.

Tata Electronics / Tata Group: Tata’s entry into semiconductor manufacturing, packaging, and ecosystem development marks a strategic shift for India’s IC landscape. While still at an early stage, Tata-backed initiatives are positioned to strengthen domestic capabilities in OSAT, specialty manufacturing, and long-term ecosystem development, influencing confidence in India’s semiconductor ambitions through 2035.

What Lies Ahead for India Integrated Circuits (IC) Market?

The India integrated circuits market is expected to expand steadily through 2035, supported by sustained growth in electronics consumption, rapid scaling of domestic electronics manufacturing, rising semiconductor content across automotive and industrial systems, and strong policy-driven focus on semiconductor self-reliance. Growth momentum is further strengthened by expanding digital infrastructure, data center investments, telecom network upgrades, and the increasing role of electronics in energy transition and mobility. As India moves from being primarily a consumption-driven semiconductor market toward a design- and manufacturing-enabled ecosystem, integrated circuits will remain a foundational pillar of industrial and digital development.

Transition Toward Higher-Value, Application-Specific and Automotive-Grade IC Demand: The future trajectory of India’s IC market will see a gradual shift from volume-led consumer electronics chips toward higher-value, application-specific integrated circuits. Automotive electronics, industrial automation, EV powertrains, renewable energy systems, and smart infrastructure require ICs with higher reliability, longer lifecycles, and stringent qualification standards. Demand for microcontrollers, power semiconductors, mixed-signal ICs, and safety-certified chips will grow faster than legacy consumer-focused segments. Suppliers with strong application engineering support and automotive-grade portfolios will benefit from this structural value shift.

Strengthening of Domestic Semiconductor Ecosystem Through Design, Packaging, and Specialty Manufacturing: While large-scale advanced wafer fabrication remains a long-term objective, near- to mid-term growth will be driven by expansion in chip design, outsourced semiconductor assembly and testing (OSAT), advanced packaging, and specialty semiconductor manufacturing. India’s strength in chip design talent, coupled with policy incentives and global partnerships, is expected to improve ecosystem depth and resilience. This evolution will enhance supply-chain confidence, reduce time-to-market risks, and support gradual localization of value addition across select IC categories.

Growing Importance of Supply Chain Resilience and Long-Term Sourcing Strategies: OEMs and EMS players in India are increasingly prioritizing supply continuity, multi-sourcing strategies, and long-term allocation agreements following recent global semiconductor disruptions. Through 2035, procurement decisions will be influenced not only by unit cost but also by supplier reliability, geopolitical risk exposure, lifecycle assurance, and roadmap transparency. This trend favors established global IC suppliers with strong allocation discipline, while also creating entry opportunities for emerging domestic and regional players in select segments.

Integration of Semiconductors with Digital Infrastructure, AI, and Industrial Automation: India’s expanding digital public infrastructure, enterprise digitization, and AI adoption will increase demand for high-performance processors, memory ICs, networking chips, and power-efficient computing solutions. Data centers, cloud services, edge computing, and smart manufacturing systems will become major drivers of IC value growth. Suppliers aligned with computing efficiency, power optimization, and scalable architectures will be better positioned to capture demand from enterprise and infrastructure-led applications.

India Integrated Circuits (IC) Market Segmentation

By IC Type

• Logic ICs & Processors (MPUs, MCUs, ASICs)
• Memory ICs (DRAM, NAND, NOR)
• Analog ICs
• Power Management ICs
• Sensors, RF, and Interface ICs

By End-Use Industry

• Consumer Electronics & IT Hardware
• Telecom & Networking
• Automotive
• Industrial & Automation
• Healthcare, Defense, Energy & Others

By Manufacturing & Sourcing Model

• Imported ICs via Global Suppliers
• Authorized Distributors & Channel-Based Sourcing
• EMS-Led Integrated Procurement
• Domestic Design-Led and OSAT-Supported Supply

By Application

• Smartphones and Wearable Devices
• Computing and Data Centers
• Automotive Electronics and EV Systems
• Industrial Control and Automation
• Power, Energy, and Infrastructure Electronics

By Region

• West India
• South India
• North India
• East India

Players Mentioned in the Report:

• Intel Corporation
• Qualcomm Incorporated
• Texas Instruments
• Broadcom Inc.
• Samsung Electronics (Semiconductor Division)
• SK hynix
• Micron Technology
• NXP Semiconductors
• Infineon Technologies
• Tata Electronics and emerging domestic semiconductor platforms
• Global IC distributors and India-based EMS-linked sourcing partners

Key Target Audience

• Integrated circuit manufacturers and global semiconductor suppliers
• Electronics manufacturing services (EMS) providers
• Consumer electronics, automotive, and industrial OEMs
• Telecom equipment manufacturers and data center operators
• Semiconductor design houses and IP firms
• OSAT and advanced packaging companies
• Government agencies and policy stakeholders
• Private equity, venture capital, and strategic investors in semiconductors

Time Period:

Historical Period: 2019–2024
Base Year: 2025
Forecast Period: 2025–2035