According to an industry report, India’s semiconductor market is projected to more than double, reaching $100-110 billion by 2030. The market stood at approximately $45-50 billion in 2024–25, up from $38 billion in 2023-24.
A detailed statement outlining the importance of semiconductors, the government’s initiatives, and industry response cited the supply disruptions faced by several technology sectors, especially the automobile industry, during the Covid-19 pandemic, due to dependence on limited geographies. It stressed the need to position India as a reliable partner in the global semiconductor supply chain.
The report noted that countries including the United States, European Union, Japan, and South Korea have introduced national strategies to promote domestic chip manufacturing and reduce dependency on any single region. Meanwhile, the global semiconductor market is expected to touch $1 trillion by 2030, with India poised to hold a significant share.
India is seen as having the potential to contribute meaningfully to the three major components of the semiconductor supply chain: equipment, materials and services, and research and development (R&D). The statement highlighted India’s strong micro, small and medium enterprises (MSME) base capable of producing semiconductor equipment components, and its availability of critical chemicals, minerals, and gases needed by the industry.
Additionally, India’s capabilities in services R&D, logistics and supply chain, and skilled talent in artificial intelligence (AI), big data, cloud computing, and internet of thing (IoT) were cited as key strengths.
