The semiconductor industry in India is experiencing rapid growth, driven by the Production Linked Incentive (PLI) scheme and the Make in India initiative. In 2024-25, India’s semiconductor market is valued at $52 billion, with a compound annual growth rate (CAGR) of 13%, projected to reach $103.4 billion by 2030.
Key Drivers of Growth
India’s semiconductor demand is primarily fueled by mobile phones, IT, and industrial equipment, which contribute 70% of the industry’s revenue. Additionally, automobile and industrial electronics sectors are emerging as significant growth drivers. To boost semiconductor manufacturing, the government has introduced FAB and OSAT incentives, R&D investments, and strategic industry collaborations. According to the Indian Electronics and Semiconductor Association (IESA), over $21 billion has been invested in this sector over the past year, significantly expanding India’s semiconductor production capacity.
Reducing Import Dependence
Currently, India relies heavily on semiconductor imports, but the Make in India initiative aims to reduce this dependency. Domestic semiconductor manufacturing will not only strengthen the economy but also position India as a key player in the global electronics market.
India Semiconductor Mission
The government has approved five key semiconductor projects under the India Semiconductor Mission to establish a strong manufacturing ecosystem. These include:
- Micron Technology
- Tata Electronics (two projects)
- CG Power
- Kaynes Technology
With these strategic efforts, India is on track to becoming a global semiconductor hub, further cementing its role in the worldwide electronics supply chain.
