India’s semiconductor industry is on the brink of an unprecedented boom. Recent estimates suggest the market could more than double, soaring to a staggering $100-110 billion by 2030. That’s a massive leap from its 2023 valuation of $38 billion and even the projected $45-50 billion for 2024-2025. These numbers aren’t just impressive they’re a testament to India’s growing influence in the global tech supply chain.
The semiconductor shortage during the Covid pandemic was a wake-up call for industries worldwide. Automobile manufacturers and tech companies faced crippling delays due to their reliance on just a handful of regions. Right now, Taiwan, South Korea, Japan, China, and the U.S. dominate the semiconductor landscape. Taiwan alone produces over 60% of the world’s chips, including 90% of the most advanced ones. This overdependence has proven risky, especially with geopolitical tensions and natural disasters disrupting supply chains.
Recognizing this vulnerability, countries are scrambling to secure their semiconductor futures. The U.S., European Union, Japan, and South Korea have all launched initiatives to boost domestic chip production. And India? It’s positioning itself as a trusted partner in this global reshuffle.
The worldwide semiconductor market is expected to hit $1 trillion by 2030, and India is poised to claim a significant slice of that pie. The country has the potential to become a major player in semiconductor manufacturing, thanks to its strong base of MSMEs, abundant resources like chemicals and minerals, and a thriving talent pool in AI, IoT, and cloud computing.
To fuel this growth, the Indian government launched the India Semiconductor Mission (ISM) in December 2021, backed by a Rs 76,000 crore investment. The mission aims to bolster semiconductor fabrication, display manufacturing, and chip design, integrating India deeper into global electronics value chains.
Big-name industry players are already lining up. Micron, Tata Electronics, CG Power, Renesas, and Foxconn are among those who’ve pledged over Rs 1.55 lakh crore in investments to produce semiconductors locally. The government is also supporting chip design startups through a Rs 1,000 crore Design Linked Incentive scheme, with Rs 234 crore already earmarked for 22 companies. These chips will power everything from CCTVs and mobile networks to satellites and smart devices.
Looking ahead, the Semicon India 2025 event in New Delhi will showcase the country’s ambitions on the global stage. Hosted by ISM and SEMI, the event from September 2-4, 2025, will bring together policymakers, industry leaders, and innovators to drive investment and collaboration. With all these moving parts, India isn’t just joining the semiconductor race it’s gearing up to lead it.