India’s chip industry is poised for exponential growth, with government support and rising demand driving the market to new heights.
India’s semiconductor market is on track to witness significant expansion, with end-demand revenues expected to soar from $54 billion in 2025 to $108 billion by 2030, according to a new report released by global financial services giant UBS, reported timesofindia.indiatimes.com.
The UBS report highlights that India’s semiconductor journey will be supported not just by surging demand from businesses and consumers, but also by proactive government policies and increasing efforts toward localisation, which are projected to contribute around $13 billion in revenue by 2030.
The UBS report forecasts a strong 15% compound annual growth rate (CAGR) for India’s semiconductor market — outpacing the global average and powered by localisation, tech adoption, and a young consumer base
Currently, India accounts for a modest 0.1% of global wafer capacity and spends roughly 1% of the global total on semiconductor equipment each year, despite fulfilling 6.5% of global semiconductor demand. Still, experts believe India’s expanding role in the global supply chain signals that the country is fast becoming a critical player in the semiconductor ecosystem.
Additionally, shifting global strategies like the “China plus one” approach — where multinationals diversify their manufacturing operations to reduce reliance on China — are already leading some companies to move final assembly operations to India.
While China dominates hardware manufacturing, India’s edge lies in its robust pool of engineering and software talent. The country is also a global hub for chip design, with nearly 20% of the world’s semiconductor designers working for international firms out of India.
Even as the US and China maintain their positions as the largest semiconductor markets, India’s projected $54 billion demand in 2025 showcases the country’s rising influence and indispensable role in the global semiconductor landscape.
