India’s Chip Market Poised To Scale $110 Billion By 2030

By Admin

04 Aug, 2025

India is in the midst of a revolutionary transformation in the semiconductor landscape. No longer just a consumer in the global chip ecosystem, the nation is fast evolving into a powerhouse of manufacturing and innovation. Backed by strategic government initiatives and significant investments, India’s semiconductor market is projected to grow from $38 billion in 2023 to a staggering $100–110 billion by 2030.

Strategic Push by the Government

The turning point in India’s chip journey has been the launch of the India Semiconductor Mission, with an ambitious investment outlay of ₹76,000 crore. Coupled with the Semicon India Programme and global partnerships like iCET (India-U.S. Initiative on Critical and Emerging Technology), India is creating a robust ecosystem that supports chip design, manufacturing, and talent development. According to industry estimates, the market is projected to grow to $45–50 billion by FY 2024–25 and $63 billion by 2026.

New Facilities and Production Capabilities

In May 2025, the Union Cabinet approved a joint venture between HCL and Foxconn, marking another milestone under the India Semiconductor Mission. This new facility, designed to manufacture display driver chips for a wide range of devices including mobile phones, laptops, automobiles, and PCs, will have a production capacity of 20,000 wafers per month and an output of 36 million units monthly. As more approved facilities become operational, India is steadily building its manufacturing capabilities from the ground up.

Semicon India 2025: A Global Showcase

The upcoming Semicon India 2025, scheduled to be held in New Delhi from September 2 to 4, will bring together stakeholders from over 18 countries. This high-impact event will showcase India’s growing role in the global semiconductor value chain and will be a platform for collaboration, innovation, and policy discussion across the sector.

Building India’s Own Chip: A Giant Leap

A highlight from the Global Investors Summit 2025 was the announcement that India’s first indigenous chip is set for production this year. With five new chip production units currently under construction, this milestone signals a crucial leap in self-reliance and national security.

Boosting Talent and Infrastructure

To meet future demands, the government has also launched an initiative to train 85,000 engineers in advanced semiconductor and electronics manufacturing. Additionally, Madhya Pradesh has inaugurated its first IT campus, with an investment of ₹150 crore. This 1 lakh sq ft facility will support the complete manufacturing cycle of IT hardware, from desktops and servers to cutting-edge tech like drones and robots, generating employment for around 1,200 professionals.

Startup Surge and Innovation in Chip Design

India’s design ecosystem is also gaining momentum. In July 2025, Netrasemi, a startup working on chips for smart vision, CCTV cameras, and IoT applications, secured ₹107 crore in VC funding. This is a testament to the strength of India’s chip design promotion schemes and growing investor confidence.

Global Importance and Diversification

The ongoing global chip shortage has underscored the vulnerability of a supply chain concentrated in a few geographies. India is being viewed as a credible alternative. Through initiatives such as Make in India and ESDM (Electronic Systems Design and Manufacturing), India is well-positioned to play a central role in the $1 trillion global semiconductor market by 2030.

Tapping into Core Supply Chain Pillars

India has the potential to contribute significantly to all three core pillars of the semiconductor supply chain:

• Equipment: With a strong MSME base capable of manufacturing semiconductor equipment components.
  
  

• Materials: Home to rich reserves of essential chemicals, minerals, and gases used in chip production.
  
  

• Services: A global hub for R&D, logistics, AI, cloud computing, and big data services.
  
  

Conclusion

From strategic policies and global partnerships to local manufacturing and design excellence, India’s chip revolution is unfolding rapidly. As the statement aptly puts it: “The chip revolution is real, and it’s happening right here, right now in Bharat.” By 2030, India is not just expected to scale a $110 billion market it is poised to emerge as a trusted global leader in the semiconductor space.