India’s semiconductor industry is on an accelerated growth path, with market projections indicating a surge beyond USD 150 billion by 2030, according to a comprehensive report released by Basic Roots Consulting. A significant contributor to this trajectory is the burgeoning artificial intelligence (AI) semiconductor segment, projected to offer a standalone market opportunity of over USD 21 billion.
The report outlines a dynamic ecosystem powered by government support, strong design capabilities, and a rapidly growing startup landscape. Notably, two-thirds of India’s semiconductor startups are headquartered in Bengaluru, reinforcing the city’s status as the country’s silicon capital. Currently, India hosts over 100 semiconductor startups, with a remarkable 20% of the global semiconductor IC design workforce based in the country.
Rising disposable incomes, accelerated digital transformation, and a growing domestic appetite for electronic devices are further fuelling semiconductor demand, with the local electronics market forecast to hit USD 110 billion by FY30.
India’s robust design talent is emerging as a competitive edge in the global semiconductor value chain. The number of semiconductor design startups has increased 2.4 times since 2014. Coupled with the government’s commitment to cover up to 50% of semiconductor manufacturing setup costs, the country is positioning itself as a serious player in both design and manufacturing.
So far, USD 18 billion has been invested across five major projects, signalling strong momentum toward building a resilient semiconductor infrastructure.
The report also sheds light on the fast-developing OSAT (Outsourced Semiconductor Assembly and Test) and ATMP (Assembly, Testing, Marking, and Packaging) segments. Leading players like Tata, Micron, and Keynes are investing heavily in advanced chip packaging and testing solutions. These capabilities are critical for completing the semiconductor value chain and reducing dependency on imports.
Despite the progress, India faces formidable challenges. The country currently lacks advanced fabrication plants, which remain dominated by foreign giants such as TSMC and Samsung. Infrastructural dependencies — including reliance on imports for wafers, photomasks, specialty gases, and chemicals — highlight the vulnerability of the supply chain. Moreover, the capital-intensive nature of semiconductor fabs, often requiring multi-billion-dollar investments, continues to be a major entry barrier.
To counter these challenges, the Indian government has rolled out the Semicon India Programme, with a total outlay of Rs 76,000 crore. This initiative is designed to support semiconductor and display manufacturing, as well as build a strong design ecosystem.
Additionally, the India Semiconductor Mission (ISM) has been formed under the Digital India Corporation, functioning as an autonomous body with administrative and financial powers to drive long-term strategies in semiconductor and display manufacturing.
With strategic investments, skilled manpower, and policy backing, India is charting a path to become a global semiconductor hub — a move that could redefine its role in the global electronics and technology domain.
