According to a report by UBS, India’s semiconductor sector is poised for significant expansion, with end-demand revenues projected to rise from $54 billion in 2025 to $108 billion by 2030. This implies a robust compound annual growth rate (CAGR) of 15 per cent, outpacing the global average, driven by factors such as a youthful population, increasing adoption of advanced chips across industries, and supportive government initiatives.
As per UBS, efforts to boost local manufacturing could contribute around $13 billion in revenues by the end of the decade. Despite currently accounting for only 0.1 per cent of global wafer capacity and just 1 per cent of global semiconductor equipment spending, India represents 6.5 per cent of worldwide chip demand, underscoring its rising strategic importance as a consumption hub.
Further, the report pointed out that multinational companies are rethinking their supply chains due to tariff uncertainties, with some already moving final assembly operations out of China under a “China plus one” strategy. While China continues to dominate semiconductor manufacturing, India’s advantage lies in its large pool of skilled software professionals. Notably, nearly 20 per cent of the world’s chip designers are based in India, working for global companies.
Although the US and China remain the biggest markets for semiconductors, India’s $54 billion demand in 2025 reflected its growing importance in the global semiconductor ecosystem.
