India Semiconductor Market Outlook to 2030

The report titled “India Semiconductor Market Outlook to 2030 – By Value-Chain Stage, By Device Type, By Process Node/Material, By End-Use Industry, By Wafer Size & Packaging, and By Region” provides a comprehensive analysis of India’s semiconductor ecosystem. The study covers the overview and genesis of the industry, overall market sizing in value and capacity terms, and detailed market segmentation. The report evaluates trends and developments, the regulatory landscape, customer-level profiling, issues and challenges, and the competitive landscape including competition scenario, cross-comparison, opportunities and bottlenecks, and company profiling of major players across fabs/OSAT, fabless/design, materials, and equipment. The report concludes with future market projections to 2029 based on capacity and output indicators, product/technology mix, end-use pull, and regional build-out, using cause-and-effect linkages. It also includes success case studies that highlight key opportunities and cautions, providing an actionable playbook for investors, operators, and policymakers. 

India Semiconductor Market Overview and Size

The India semiconductor market is valued at USD 6.80 billion, supported by solid historical growth data from 2019 to 2024. According to TraceData Research, this valuation is backed by credible industry studies. The market’s expansion is largely driven by accelerating demand in consumer electronics, 5G deployment, automotive electrification, and datacenter infrastructure, which have collectively created robust, quantifiable demand for semiconductors in both value and volume.

Dominant centers include Bengaluru, Hyderabad, and Pune, along with the emerging Uttar Pradesh corridor. The southern cities lead due to their deep IT and electronics design ecosystems, world-class R&D institutions, and proximity to global design partners . Meanwhile, Uttar Pradesh is rapidly rising in prominence thanks to favorable electronics manufacturing policies, infrastructure development, and strategic investments like the HCL–Foxconn facility near Jewar and the Uttar Pradesh Electronics Manufacturing Policy.

 What Factors are Leading to the Growth of the India Semiconductor Market:

Policy firepower & design-to-manufacturing push: India has switched on large public financing specific to chips, which reduces entry risk for fabs and ATMP/OSAT. The India Semiconductor Mission carries an outlay of ₹76,000 crore, with program documents specifying fiscal support and a dedicated implementation structure. In parallel, the Design Linked Incentive has already sanctioned 23 chip-design projects, signalling a funded pipeline from IP to SoCs. Complementary electronics schemes are disbursing capital today—MeitY reports ₹2,377.06 crore released to 141 applicants under manufacturing cluster programs. Together, these numbers show both upfront capex support and design-ecosystem seeding—critical for India’s semiconductor market to localize higher value-add. 

Demand pull from scaled digital and device adoption: Domestic demand anchors wafer starts and assembly utilization. India had 1,165.49 million wireless subscribers on record as of end-March (TRAI), a base already using data-heavy apps that lift device and network silicon consumption. Network modernization is visible in physical infrastructure: the Department of Telecommunications reports over 4.62 lakh 5G base stations installed, expanding radios, backhaul and core demand for RF, memory and logic. On the trade side, India shipped US$29.12 billion of electronic goods in the latest fiscal, indicating deepening domestic manufacturing linkages that also consume components and ICs. This scale effect is a structural driver for India’s semiconductor market—from handset and network silicon to power devices for infrastructure. 

Electrification of mobility & power electronics pull-through: Electrified transport is now a visible, quantified load on semiconductor content in India. Government records show 4,574,938 electric vehicles registered on the e-Vahan portal by late July, with a clear step-up in registrations through the previous fiscal. EV traction in two-/three-wheelers and buses expands demand for Si/SiC MOSFETs, IGBTs, MCUs and battery-management ICs—adjacent to chargers and DC-DC converters. This sits within a macro economy sized at US$3,912,686.17 million (current US$) and rising manufacturing activity, offering headroom for domestic componentization and local test/pack. The combination of EV stock and a large macro base creates steady orders for power, analog and embedded silicon across India’s semiconductor market. 

Which Industry Challenges Have Impacted the Growth of the India Semiconductor Market:

Import-heavy electronics supply chain exposes the chip ecosystem: While electronics exports are rising, India’s overall merchandise imports remain very large, and the sector is still reliant on inbound parts and equipment. Government trade releases detail fiscal-year import and export values, underscoring the magnitude of goods flows that include HS-85 components, specialty gases, photolithography gear and precision spares essential for fabs and ATMP/OSAT. Customs performance has improved yet remains a planning constraint for critical-path logistics: CBIC’s National Time Release Study reports average import release times of 85:42 hours at seaports, 71:46 hours at ICDs, 44:16 hours at air cargo complexes, and 31:47 hours at integrated check posts. For semiconductor projects with tight MRO cycles, these absolute hours shape safety stocks and downtime risk.

Water stress and environmental clearances for water-intensive nodes: Modern fabs can require thousands of cubic meters of ultra-pure water daily; that collides with India’s quantified water stress. The Ministry of Jal Shakti cites 1,486 cubic meters of average annual per-capita water availability for the reference year and 1,367 cubic meters for the subsequent decade benchmark—both within “water-stressed” thresholds. Such baselines force semiconductor investors to model zero-liquid-discharge, wastewater recycling, and multi-source raw water tie-ups before consent-to-establish/operate is granted by State Boards. In practice, these numbers mean fab sites must co-opt treated municipal flows and industrial effluent reuse to secure resilient daily supply without crowding out urban and agricultural demand. 

Talent depth in VLSI specialties versus broad STEM output: India’s higher-education pipeline is vast, but the semiconductor-specific slice is narrower than total STEM. The Ministry of Education’s AISHE statistical release notes 9.85 million STEM enrolments across UG/PG/M.Phil./Ph.D. in the latest reported cycle and 10.7 million total pass-outs across disciplines—large figures for a design ecosystem. Yet advanced nodes, analog layout, DFT, EDA flows, and packaging require concentrated experience that takes years to build. Without scaled tap-roots into postgraduate microelectronics and sustained industry–lab co-ops, many graduates detour into software or IT services; the macro enrolment and pass-out numbers demonstrate supply, but the semiconductor market’s need is depth in niche skills that remain capacity-constrained. 

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

India Semiconductor Mission (ISM) – program structure and fiscal support: The ISM anchors approvals for fabs, displays, compound semiconductors and ATMP/OSAT under a ₹76,000 crore central outlay. Official program communications specify scheme contours (application appraisal by Expenditure Finance Committee, fiscal support on a pari-passu basis, and project-level conditions). Recent press notes show active project pipelines across multiple states, indicating the licensing corridor is operational—MoUs, evaluation, and Cabinet approvals where required. For market participants, the numeric outlay and program structure translate to credible center-state coordination, viability-gap cover, and a path to secure land, utilities and fiscal closure within a defined window. 

Design Linked Incentive (DLI) – funded pipeline of chip design: DLI provides reimbursable support alongside shared EDA IP/compute access through the chips-DLI platform. Government disclosures confirm 23 sanctioned chip-design projects, spanning surveillance camera SoCs, energy-meter silicon and microprocessor IPs—tying financial support to verifiable design milestones. This numeric base matters operationally: sanctioned teams can progress from RTL to tape-out using subsidized tools and MPW runs, and later link to manufacturing schemes for NPI. For the India semiconductor market, DLI’s measurable pipeline de-risks early-stage IP creation and creates investable assets for OSATs and fab partners.

Complementary electronics manufacturing schemes – PLI/SPECS/EMC: Semiconductor projects depend on upstream/downstream electronics. Under the electronics policy stack, the government has notified PLI for large-scale electronics and IT hardware, the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and Electronics Manufacturing Clusters 2.0. Official releases document real disbursal: ₹2,377.06 crore issued to 141 applicants in cluster schemes, while PLI budgets notified by Parliament answers detail ₹34,193 crore for large-scale electronics and ₹17,000 crore for IT hardware. These concrete rupee outlays and beneficiaries compress supply-chain setup times for substrates, PCBs, passives and fixtures that semiconductor units rely on.

India Semiconductor Market Segmentation

By Device Type: The India semiconductor market is segmented by device type into Logic, Memory, Analog & Mixed-Signal, Discrete, and Sensors & Opto. The Analog & Mixed-Signal segment holds a dominant share of the market. This dominance stems from its pervasive use in power management, sensor interfacing, and analog front ends across key growth sectors such as automotive, smartphones, and IoT devices. Its strategic role in device integration and differentiation across mobile, automotive, and industrial systems underscores its leading position.

By End-Use Industry: The India semiconductor market is segmented by end-use industry into Consumer Electronics, Automotive & EV, Telecom & Networking, IT/Datacenter, and Industrial/IoT. Consumer Electronics dominate due to India’s massive smartphone and smart device market, with over 650 million smartphone users, combined with increased affordability and brand penetration. The consistent demand for display, power management, and RF front‑end chips among OEMs and ODMs cements this segment’s market leadership.

Competitive Landscape in India Semiconductor Market

India's semiconductor market is shaping up with a diverse set of emerging and established players, blending domestic initiatives with global partnerships. The India semiconductor market features a mix of ambitious Indian groups and international firms establishing a foothold via JV’s, OSAT and design services. This consolidation highlights the strategic influence of key players shaping the ecosystem.

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

Tata Electronics: As one of the most ambitious domestic entrants in the semiconductor ecosystem, Tata Electronics has advanced its OSAT project in Tamil Nadu while securing technology transfer partnerships for logic and display driver packaging. The company’s focus on large-scale assembly and test capacity marks a strategic step toward reducing import dependence.

Micron Technology India: Micron inaugurated its large ATMP facility in Sanand, Gujarat, strengthening India’s position in global memory packaging. The site is designed for DRAM and NAND assembly and test operations, aimed at catering to the surging datacenter and smartphone demand.

Kaynes SemiCon: Known for its strong focus on advanced packaging, Kaynes SemiCon expanded its footprint in Gujarat and Karnataka. The company is emphasizing FC-BGA and WLCSP technologies to serve the fast-growing automotive and industrial segments.

CG Power Semiconductors JV: Backed by CG Power, Renesas, and Stars Microelectronics, the JV has moved rapidly toward establishing a state-of-the-art OSAT facility in Sanand. This project is positioned as a cornerstone in India’s semiconductor mission, supported by substantial central and state incentives.

Polymatech Electronics: Specializing in wide-bandgap materials, Polymatech expanded its GaN and SiC component production in Tamil Nadu. Its investments in power semiconductors are strategically aligned with the growth of India’s EV and renewable energy sectors.

What Lies Ahead for India Semiconductor Market?

The India semiconductor market is expected to strengthen its role in the global supply chain, supported by government-backed incentives, increasing local demand from electronics and EV industries, and strategic partnerships with global technology leaders. The ecosystem is gradually moving from being import-reliant to developing a robust domestic design-to-manufacturing pipeline, which will be critical for reducing external vulnerabilities and meeting the growing consumption base in the country.

Rise of Domestic Assembly & Test Ecosystem: India is likely to witness rapid expansion in ATMP/OSAT units as companies like Micron, Tata Electronics, Kaynes SemiCon, and CG Power Semiconductors JV set up large-scale operations. This will help reduce dependence on overseas test facilities and bring higher value capture within the country.

Focus on Wide-Bandgap Materials: With the strong momentum in electric mobility and renewable energy integration, demand for SiC and GaN semiconductors is set to rise. Players like Polymatech and other new entrants focusing on wide-bandgap technologies will be at the forefront of supplying power electronics solutions required for EVs, charging infrastructure, and clean energy grids.

Strategic Partnerships & Technology Transfers: The next decade will be marked by joint ventures and technology transfers from established hubs like Taiwan, Japan, and the US. Partnerships such as Tata–PSMC and CG Power–Renesas are already shaping India’s semiconductor landscape, enabling faster adoption of mature nodes while gradually building design and R&D capacity in advanced logic and packaging.

Integration of AI & RISC-V Design Capabilities: India’s semiconductor design community is set to leverage AI-driven design automation and the global momentum around open-source RISC-V architecture. This shift will not only enhance local innovation but also provide a scalable path for startups and fabless companies to deliver globally competitive solutions.

India Semiconductor Market Segmentation

By Value-Chain Stage 

• Fabless Design

• Wafer Fabrication

• ATMP/OSAT (Assembly, Testing, Marking, Packaging)

• Materials & Substrates

• Equipment & Metrology

By Device/Technology Type 

• Logic ICs

• Memory ICs

• Analog & Power Devices

• Discrete & Sensor ICs

• Wide-Bandgap Devices (SiC, GaN)

By End-Use Industry 

• Automotive & EV

• Consumer Electronics & Smartphones

• Telecom & 5G Networking

• Datacenter & Cloud/AI Infrastructure

• Industrial & IoT

• Defense & Strategic Electronics

By Wafer/Packaging Format 

• Wafer Size (150 mm, 200 mm, 300 mm)

• Packaging Formats (QFN/QFP, FC-BGA, WLCSP, SiP, 2.5D/3D)

By Region 

• Gujarat

• Uttar Pradesh

• Karnataka

• Tamil Nadu

• Telangana

• Others

Players Mentioned in the Report:

• Tata Electronics (TSAT)

• Micron Technology India

• Kaynes SemiCon

• CG Power Semiconductors (JV)

• HCL–Foxconn JV

• SPEL Semiconductor

• Continental Device India (CDIL)

• Polymatech Electronics

• MosChip Technologies

• Signalchip Innovations

• Tessolve

• HCLTech – Sankalp Semiconductor

• Tata Elxsi

• Renesas Electronics India

Key Target Audience

• Semiconductor Fabricators & OSAT Operators

• Electronics OEMs & EMS providers 

• State Government Policy & Planning Bodies 

• Central Government Agencies 

• Venture Capital & Investment Firms specializing in deep tech or hardware startups

• Corporate Strategic Investment Departments 

• Global Semiconductor Tool & Equipment Suppliers 

• Automotive OEM Electronics Procurement Heads

Time Period:

• Historical Period: 2019-2024

• Base Year: 2025

• Forecast Period: 2025-2030