India’s semiconductor opportunity

Semiconductors have emerged as a strategic imperative for India, underpinning economic competitiveness, technological advancement and national security. Driven by rapid growth in electronics manufacturing, expanding digital infrastructure, increasing semiconductor intensity across automobiles and industrial systems and rising adoption of AI, India's semiconductor demand is projected to reach approximately USD90 billion by 2029-30, up from around USD44 billion in 2025-26.

To translate growing semiconductor demand into domestic value creation, the Government of India is fostering a policy-led ecosystem development approach. Initiatives such as Semicon 1.0 and Semicon 2.0 , DLI Scheme, Chips to Startup programme and strategic technology partnerships are helping build capabilities across manufacturing, design, talent and innovation, creating a stronger foundation for India's semiconductor ambitions.

India's demand profile, characterised by strong demand for logic, connectivity and power semiconductors, together with its strengths in design talent, STEM capabilities and electronics manufacturing, creates distinct opportunities across the semiconductor value chain. While design and packaging provide the most immediate pathway to value creation, India can progressively build capabilities in manufacturing (fabs), materials and equipment.

Coordinated ecosystem development across talent, innovation, suppliers, manufacturing infrastructure and strategic partnerships will be critical to translating semiconductor demand into domestic value creation. These enablers can accelerate capability development, strengthen supply-chain resilience and support India's emergence as a globally competitive semiconductor hub.

Key highlights of the report

Rising semiconductor intensity across mobile phones, wearables, consumer electronics, IT hardware and industrial electronics is increasing demand for logic, memory, power and connectivity semiconductors
Logic semiconductors represent one of the largest manufacturing opportunities; 28/40 nm emerges as a key logic manufacturing opportunity by 2030
Government initiatives such as Semicon 1.0 have significantly strengthened the growth outlook for India's semiconductor industry, fuelling a notable increase in investment activity
Growing deployment of indigenous AI models is expected to increase training and inference workloads, driving demand for AI-intensive data centres and higher semiconductor consumption across GPUs, processors, memory chips and networking equipment
While India has established an initial presence across manufacturing-focused segments, the next phase should focus on areas where supply chain disruption risks are high and where India’s inherent strengths can be leveraged to build capabilities, mitigate such risks and reduce import dependency
Design emerges as attractive opportunities given relatively lower investment and availability of skilled resources. While assembly, testing and packaging offers the fastest path to scale, equipment and materials require phased capability building
Mature-node fabs offer India a commercially viable pathway to build manufacturing scale and support a large domestic market. Building multiple fabs and supporting supply chains could create ecosystem synergies, laying the foundation for a future transition to advanced-node technologies