India's semiconductor market will more than double to reach $100-110 billion by 2030, according to industry estimates released Sunday. The projection represents massive growth from the current market size of $45-50 billion in 2024-2025, compared to $38 billion in 2023. Business Standard reports the government issued an official statement outlining these growth targets.

The India Semiconductor Mission launched in December 2021 with ₹76,000 crore in funding to support semiconductor fabrication, display manufacturing and chip design. Major industry players have committed over ₹1.55 lakh crore in total investments, including partnerships between Tata Electronics and Taiwan's Powerchip Semiconductor Manufacturing Corp, plus facilities planned by Micron, Kaynes Semicon, and the HCL-Foxconn joint venture.

Why This Growth Matters For India's Economy

This expansion addresses critical supply chain vulnerabilities exposed during the COVID pandemic when technology segments, particularly automotive, faced severe disruptions. The government statement referenced the automobile industry's dependency on select geographies as a key driver for establishing India as a trusted global partner.

Mordor Intelligence data shows the market reached $54.32 billion in 2025 and projects $103.50 billion by 2030, with unit shipments growing from 83.96 billion to 170.71 billion units. The Production Linked Incentive and Design Linked Incentive programs cover up to 70% of approved project costs, unlocking ₹1.52 lakh crore in private commitments. Electric vehicle programs will drive automotive semiconductor volume at a 25.2% annual growth rate through 2030, doubling silicon content per car from $312 for internal combustion to over $600 for battery-electric platforms.

Industry Transformation Reshapes Global Supply Chain

India's semiconductor growth occurs amid worldwide efforts to diversify manufacturing away from Taiwan's dominance. Taiwan currently produces over 60% of global semiconductors and nearly 90% of the most advanced chips, creating significant supply chain risks from geopolitical tensions and natural disasters.

IDC forecasts the global semiconductor market will grow 15% in 2025, driven by artificial intelligence and high-performance computing demand. Memory segments are expected to surge over 24% due to increasing penetration of high-end products like HBM3 and HBM3e required for AI accelerators. The non-memory segment should grow 13% mainly from advanced node integrated circuits for AI servers and high-end mobile applications.

However, Deloitte research reveals the industry faces a critical talent shortage, requiring over one million additional skilled workers globally by 2030. The semiconductor workforce shortage shows signs of tightening as companies compete for the same finite talent pool while technological advancement and capacity expansion accelerate. Countries implementing domestic chip manufacturing programs must weave workforce development goals into their strategic planning to successfully benefit from their respective chips acts.

Further Reading

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