India Semiconductor Market Size, Share, and COVID-19 Impact Analysis, By Components (Memory Devices, Logic Devices, Analog IC, MPU, Discrete Power Devices, MCU, Sensors, and Others), By Material Used (Silicon Carbide, Gallium Manganese Arsenide, Copper Indium Gallium Selenide, Molybdenum Disulfide, and Others), and India Semiconductor Market Insights, Industry Trend, Forecasts to 2035

India Semiconductor Market Insights Forecasts to 2035

• The India Semiconductor Market Size was estimated at USD 52.90 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 12.30% from 2025 to 2035
• The India Semiconductor Market Size is Expected to Reach USD 189.42 Billion by 2035

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The India Semiconductor Market Size is anticipated to reach USD 189.42 Billion by 2035, Growing at a CAGR of 12.30% from 2025 to 2035.  Rising demand for consumer electronics, advancements in automotive technologies, government initiatives promoting domestic manufacturing, and the growing adoption of AI, IoT, and 5G technologies are fueling the growth of the India semiconductor market.

 

Market Overview

The India semiconductor market represents the country’s growing focus on developing a domestic ecosystem for the design, manufacturing, testing, and packaging of semiconductor devices. Semiconductors are vital components in modern electronics, enabling the functioning of devices ranging from smartphones and computers to industrial systems and automobiles. While India has traditionally relied on imports for its semiconductor needs, there is a strong national push to build local capabilities across the semiconductor value chain. Major industrial groups such as Tata Electronics, Micron, and Foxconn have begun investing in India's semiconductor sector, focusing on establishing manufacturing and assembly plants. To support these developments, the government is also investing in infrastructure and training programs to build a skilled workforce capable of supporting the semiconductor industry. Additionally, India’s semiconductor initiative reflects a long-term vision to reduce import dependence, enhance technological self-reliance, and position the country as a competitive player in the global semiconductor supply chain.

 

Market Scope

The India semiconductor market holds significant potential, with its reach extending across diverse industries such as consumer electronics, telecommunications, automotive, and industrial sectors. As technologies like 5G, AI, IoT, and electric vehicles gain traction, the demand for semiconductors is accelerating, fostering growth opportunities. India's strategic focus on developing its domestic semiconductor manufacturing infrastructure through initiatives like the Production-Linked Incentive (PLI) scheme is reshaping the market landscape. With a rapidly evolving tech ecosystem, a large consumer base, and increasing government support, India is poised to emerge as a major hub in the global semiconductor supply chain.

 

Government Initiatives and Investments

The Ministry of Electronics and Information Technology (MeitY) has announced a USD10 Billion investment under the India Semiconductor Mission (ISM) to accelerate semiconductor research and development (R and D) and manufacturing in the country. This significant investment reflects the government’s strategic vision to build a self-reliant semiconductor ecosystem and reduce dependence on imports. The funding includes capital support, manufacturing incentives, and the Design Linked Incentive (DLI) scheme, which specifically supports fabless startups in designing semiconductor products for both domestic and global markets.

 

In addition, the Indian government is offering a range of incentives and subsidies to create a favorable environment for semiconductor investment. These efforts align with the broader goals of the ‘Make in India’ initiative, launched in 2014, which aims to transform India into a global manufacturing hub. To further strengthen the electronics and semiconductor sectors, the government introduced the Production Linked Incentive (PLI) scheme, designed to encourage large-scale electronics manufacturing.

 

Under this scheme, a USD 1.7 billion incentive package has been allocated specifically for companies setting up semiconductor manufacturing facilities in India. This landmark initiative is expected to attract leading global and domestic players, boost local innovation, create high-skilled jobs, and enhance India’s position in the global semiconductor supply chain. Together, these policies represent a comprehensive and forward-looking approach to developing India’s semiconductor industry.

 

Report Coverage

This research report categorizes the market for the India semiconductor market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the India semiconductor market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the India semiconductor market.

 

Growth Factor

Rising technological adoption across industries, coupled with the growing demand for next-gen devices, is fueling the India semiconductor market. The expansion of 5G networks, AI applications, and the Internet of Things (IoT) requires increasingly advanced chips for enhanced performance. Government initiatives like the Production-Linked Incentive (PLI) scheme are driving local semiconductor production, reducing reliance on imports. Additionally, the growth of electric vehicles and smart infrastructure is opening new avenues for semiconductor applications, contributing to the market's expansion and positioning India as a key player in global semiconductor manufacturing.

 

Market Challenges

Establishing semiconductor fabrication plants requires immense capital investment, often running into billions, which creates financial barriers. Additionally, challenges related to infrastructure, such as inconsistent power supply and inadequate water and transport systems, hamper efficient manufacturing.

 

Global Outlook and Policies Towards Indian Semiconductor Market

India’s semiconductor market is undergoing a dramatic transformation, and its future holds great promise. As global supply chains face increasing volatility and geopolitical shifts, India has become a prime candidate to reshape the semiconductor narrative. In this new global context, the country's aspirations to become a significant player in the semiconductor industry are backed by a blend of ambitious policies, strategic partnerships, and a thriving domestic market.

 

• A Response to Global Supply Chain Shocks:

The global semiconductor shortage, catalyzed by the COVID-19 pandemic, demonstrated the fragility of concentrated supply chains. As a result, nations and corporations are seeking diversification to mitigate risks. India, with its rapidly growing technology ecosystem and relatively lower labor costs, is increasingly viewed as an attractive location for semiconductor manufacturing.

 

• Emerging as a Design and R and D Hub:

While India has yet to establish itself as a major fabrication center, it already boasts significant talent in semiconductor design and intellectual property (IP) development. Companies like Sasken Technologies, C-DAC (Centre for Development of Advanced Computing), and Ineda Systems are already pushing the boundaries in chip design, providing a foundation on which the country can build.

 

India Semiconductor Market and the Outlook of China, Taiwan, and Japanese Companies

China

Chinese companies, despite geopolitical tensions and regulatory hurdles, are cautiously observing India's progress. While direct investment from China in India’s strategic sectors is limited due to national security concerns and FDI restrictions, some Chinese component manufacturers are exploring indirect partnerships or joint ventures via Southeast Asia. However, India remains more focused on reducing dependence on Chinese imports, especially in electronics and telecom hardware.

 

Taiwan

Taiwan is a critical player in the global semiconductor value chain, especially through companies like TSMC and UMC. India has actively sought Taiwanese investment, and some collaborations are already underway:

• Tata Group’s joint venture with Powerchip Semiconductor Manufacturing Corp (PSMC) to set up a wafer fabrication plant in Dholera, Gujarat, is a major breakthrough. This fab will focus on chips for automotive, power management, and display drivers.

 

Japan

Japanese companies like Renesas Electronics, ROHM, and Panasonic are expanding their partnerships in India, primarily in automotive chips and consumer electronics components. Additionally, Japan and India are collaborating on critical material supply chains essential for semiconductor manufacturing.

 

Indian Market Analysis and Future Scope

Digital transformation is at the heart of India's progress, with initiatives like Digital India enhancing connectivity, driving e-commerce, and creating new opportunities in fintech, healthcare, and education. The government’s push for self-reliance through programs like Atmanirbhar Bharat and PLI (Production Linked Incentive) is transforming the manufacturing landscape, especially in sectors like semiconductors, electric vehicles, and renewable energy. The rise of electric mobility, along with India’s significant investment in solar power and green hydrogen, showcases the country's commitment to sustainability. Additionally, the rise of smart cities, improved manufacturing capabilities through Industry 4.0 adoption, and government-backed schemes like the Production Linked Incentive (PLI) will foster growth in industries such as electronics, automotive, and healthcare. The biotechnology and pharmaceutical sectors will also continue to thrive, with India strengthening its role as a global leader in drug manufacturing and medical innovation.

 

Market Segmentation

The India semiconductor market share is classified into components and material used.

 

• The memory devices segment held a leading revenue share in 2024 and is expected to grow at a substantial CAGR during the forecast period.

The India semiconductor market is segmented by components into memory devices, logic devices, analog IC, MPU, discrete power devices, MCU, sensors, and others. Among these, the memory devices segment held a leading revenue share in 2024 and is expected to grow at a substantial CAGR during the forecast period. The growth in the segment is driven by increasing demand in consumer electronics, smartphones, data centers, and automotive applications. The growth of cloud computing, 5G technology, and digital transformation across industries has significantly boosted the consumption of memory chips.

 

• The silicon carbide segment held a major revenue share in 2024 and is expected to grow at a remarkable CAGR during the forecast period.

The India semiconductor market is segmented by material used into silicon carbide, gallium manganese arsenide, copper indium gallium selenide, molybdenum disulfide, and others. Among these, the silicon carbide segment held a major revenue share in 2024 and is expected to grow at a remarkable CAGR during the forecast period. The segment growth is owing to its superior properties such as high thermal conductivity, high breakdown electric field strength, and ability to operate at high temperatures and voltages. SiC is increasingly being used in power electronics, particularly in electric vehicles (EVs), renewable energy systems, and industrial applications.

 

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the India semiconductor market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers and acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

 

List of Key Companies

• Tata Group
• HCL Technologies
• Micromax Informatics
• Redpine Signals
• Sankalp Semiconductor
• VLSI Design
• STMicroelectronics India
• Texas Instruments India
• Broadcom India
• Qualcomm India
• Others

 

Recent Developments:

• In February 2024, Tata Electronics, a subsidiary of the Tata Group, in partnership with Taiwan's PSMC, is establishing a semiconductor fabrication plant in Dholera, Gujarat. This facility, with an investment of Rs. 91,000 crore, aims to produce 50,000 wafer starts per month and is expected to commence operations by 2027.

 

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

 

Market Segment

This study forecasts revenue at India, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the India semiconductor market based on the below-mentioned segments:

 

India Semiconductor Market, By Components

• Memory Devices
• Logic Devices
• Analog IC
• MPU
• Discrete Power Devices
• MCU
• Sensors
• Others

 

India Semiconductor Market, By Material Used

• Silicon Carbide
• Gallium Manganese Arsenide
• Copper Indium Gallium Selenide
• Molybdenum Disulfide
• Others