India Semiconductor Market

The India Semiconductor Market is analyzed in this report across offering, material, technology node, end-use industry, highlighting major trends and growth forecasts for each segment.

Introduction

The India Semiconductor Market is rapidly evolving into a cornerstone of the country’s electronics and technology landscape. As a foundational component across digital infrastructure, consumer electronics, automotive systems, industrial automation, and communication technologies, semiconductors are enabling next-generation innovation.

They are vital for enhancing device performance, processing efficiency, connectivity, and driving advanced applications such as IoT, 5G, artificial intelligence, and electric mobility. This surge in demand is fueling substantial investment and growth within the sector.

India’s semiconductor market, valued at approximately USD 49.57 billion in 2024, is projected to grow at a CAGR of 12.48% to reach USD 100.5 billion by 2030. The expansion is being propelled by increasing consumer electronics consumption, accelerated electric vehicle adoption, telecom infrastructure growth, and strategic government initiatives aimed at strengthening domestic manufacturing capabilities.

Public and private sector investments, coupled with a rising emphasis on chip design and fabrication, are positioning India as a competitive force in the global semiconductor ecosystem.

Market Dynamics

India’s semiconductor industry is growing rapidly, shaped by a range of drivers that are reinforcing its position as a strategic pillar of technological progress. The market is being propelled by robust demand for consumer electronics, increased adoption of electric vehicles, and the rollout of 5G networks.

Government-backed initiatives under the “Make in India” and India Semiconductor Mission (ISM) programs are catalyzing local design, manufacturing, and advanced packaging capabilities. Semiconductors are also integral to industrial automation, automotive electronics, and digital transformation—enhancing efficiency, connectivity, and performance across applications.

The sector presents substantial growth opportunities for market players focused on building advanced fabs, ATMP facilities, and fabless design ecosystems. Companies are investing in low-power chipsets, high-performance processors, and analog and mixed-signal devices tailored to domestic needs.

India’s ₹76,000 crore ISM initiative, approved by the Union Cabinet in 2021, is facilitating capacity expansion, technology transfer, and workforce development, aimed at establishing the country as a global semiconductor manufacturing and design hub.

Key industry trends include a shift toward localized manufacturing, rising investments in advanced packaging and testing technologies, and the adoption of AI-powered chip design tools. India is targeting mature and mid-node fabs for core applications in telecom, automotive, and consumer electronics, while expanding its role in global design and IP services.

Bangalore and Karnataka are emerging as hubs for semiconductor R&D and innovation, supported by major announcements from Lam Research and Tokyo Electron. Meanwhile, Gujarat is leading investment in fabrication and assembly infrastructure, and East India is poised for rapid growth driven by industrial expansion in Odisha and Andhra Pradesh.

Segment Highlights and Performance Overview

By Offering

Hardware dominates the market, accounting for approximately 86% of total revenue. This segment encompasses essential semiconductor components such as memory chips, logic ICs, analog parts, and sensors, which are critical for powering a wide range of applications from consumer electronics to automotive systems. The growth of domestic fabs and ATMP facilities is further reinforcing the segment’s dominance.

By Material

Silicon remains the most widely used material in India’s semiconductor industry, representing about 50% of the market. Its reliability, cost-effectiveness, and versatility make it the material of choice for integrated circuits and power electronics used in consumer, automotive, and telecom applications. Ongoing investment in local silicon wafer production and fabrication is bolstering this segment.

By Technology Node

The >20nm technology node leads with a 60–65% market share. These mature nodes are well-suited for high-volume applications in legacy systems, industrial automation, and mid-range consumer devices. Their cost efficiency and technical maturity continue to meet the needs of India’s fast-growing electronics market.

By End-Use Industry

Consumer electronics account for 35–40% of India’s semiconductor demand. The proliferation of smartphones, laptops, smart appliances, and wearable devices is driving continued consumption. Rising disposable incomes, urbanization, and rapid digital adoption are further strengthening this segment as the primary driver of domestic semiconductor usage.

Geographical Analysis

North and West-Central India hold the largest share of the Indian semiconductor market, supported by robust manufacturing infrastructure, strong policy incentives, and high-capacity investment commitments. Gujarat leads the West-Central region, anchored by large-scale semiconductor fab and ATMP projects that align with national policy priorities under the India Semiconductor Mission (ISM).

Bangalore and the broader Karnataka region are emerging as critical centers for semiconductor innovation, particularly in design, IP development, and fabrication technology. Notable developments include Lam Research’s USD 1 billion investment and Tokyo Electron’s R&D hub, which are expanding India’s capabilities in equipment and process engineering.

Meanwhile, East India is forecasted to register the highest CAGR—estimated at 15.4%—driven by rapid industrialization and increasing automotive and electronics manufacturing activity in states like Odisha and Andhra Pradesh. These developments are supported by a combination of state-level industrial policies and strategic federal incentives.

Competition Landscape

India’s semiconductor market is marked by a dynamic mix of domestic manufacturers, fabless design firms, and emerging startups. These players are competing based on product innovation, IP development, strategic alliances, and investment in manufacturing and packaging capacity.

Major participants profiled in this report include: Sankalp Semiconductor, MosChip Technologies, Saankhya Labs, Mirafra Technologies, Signalchip Innovations, Steradian Semiconductors, Sasken Technologies, VVDN Technologies, Tessolve, Vedanta Limited, ISMC Analog, and HCL Technologies.

The competitive focus is increasingly shifting toward advanced packaging, IP licensing, export-oriented chip design, and vertically integrated supply chains, all of which align with India’s long-term semiconductor self-reliance goals.

Key Developments

• In February 2024, Saankhya Labs announced that it had received approval under the Semiconductor Design Linked Incentive (DLI) scheme to develop a 5G System-on-Chip (SoC) for telecom infrastructure. This approval marks a major step toward reducing dependence on imported chips and strengthens India’s position in domestic 5G development. It is expected to accelerate the growth of India’s semiconductor design ecosystem.
• In May 2025, the HCL Group, in partnership with Taiwan’s Foxconn, announced that it had secured Cabinet approval for a ₹3,706 crore investment to establish a semiconductor manufacturing plant in India. This joint venture represents a significant boost to India’s domestic fabrication capacity and is expected to attract further investments, enhance local supply chains, and position India more prominently in the global semiconductor landscape.

Segmentation:

By Offering:

• Hardware
• Memory Devices
• Logic Devices
• Analog IC
• Others

• Solutions
• Chipsets & Platforms
• Reference Designs & System-on-Modules (SoM)
• Intellectual Property (IP) Cores & Libraries
• EDA & Design Tools

• Services
• Design & Engineering Services
• Manufacturing Services
• Testing & Validation Services
• Consulting & R&D

By Material:

• Silicon
• Gallium Arsenide (GaAs)
• Silicon Carbide (SiC)
• Gallium Nitride (GaN)
• Others

By Technology Node:

• <10nm
• 10-20nm
• >20nm

By End-Use Industry:

• Consumer Electronics
• Automotive
• Industrial
• Telecommunication
• Healthcare
• Others

Companies included in the report:

• Sankalp Semiconductor
• MosChip Technologies
• Saankhya Labs
• Mirafra Technologies
• Signalchip Innovations
• Steradian Semiconductors
• Sasken Technologies
• VVDN Technologies
• Tessolve
• Vedanta Limited
• ISMC Analog
• HCL Tech