India Semiconductor Market Size | 2019-2032

India Semiconductor Market Growth and Performance

• 2023 saw the India semiconductor market size rose to US$ 37.91 Billion.
• DataCube Research foresees, the semiconductor market in India is set to make significant strides on the global stage, with projected revenue reaching US$ 122.34 Billion by 2032. Moreover, our analysis indicates a promising trajectory, an anticipated CAGR of 12.8% from 2024 to 2032.

India Semiconductor Market Outlook

The India semiconductor market is rapidly emerging as a global contender, driven by strategic government initiatives, international collaborations, and increasing demand across various industries. With the India Semiconductor Mission (ISM) at its core, India is aiming to transform into a global hub for electronics manufacturing and design. The India semiconductor market outlook is highly optimistic. The establishment of the India Semiconductor Mission (ISM), which has approved projects worth ?76,000 crore (US$9.1 billion), and the recent agreement with the US to establish a semiconductor fabrication plant signify strong growth prospects. The Kaynes Semicon ATMP unit in Gujarat, with an investment of ?3,307 crore (US$394.15 million), will produce 6 million chips daily, boosting India's production capabilities.

India Semiconductor Market Growth

The India semiconductor market growth is projected to be robust, with the market expected to reach $XX3.4 billion over the next five years. This growth is underpinned by India's booming $400+ billion electronics market and strong demand from sectors such as automotive, industrial electronics, mobile handsets, IT, and industrial applications, which contribute nearly 70% of the revenue. Key initiatives such as the Tata-PSMC joint venture and investments from Lam Research exceeding ?10,000 crore (US$1.2 billion) further highlight the market's growth potential.

India Semiconductor Market Trends

The India semiconductor market trends include a strong push towards “chip manufacturing-as-a-service”, focusing on a global clientele beyond the US market. The government's TRUST initiative with the US, and a focus on gallium nitride technology at IISc Bengaluru, indicate a trend towards strategic technology partnerships and advanced research and development. The production of the first indigenous semiconductor chip by September-October 2025 is a testament to India's growing manufacturing prowess.

India Semiconductor Market Competitive Landscape

The India semiconductor market competitive landscape is being shaped by both domestic and international players. Key investments include the Tata-PSMC joint venture in Gujarat and Lam Research’s expansion in Karnataka. The India Semiconductor Mission (ISM) continues to attract leading semiconductor firms, positioning India as a strategic player in the global semiconductor supply chain.

India Semiconductor Market Development

The India semiconductor market development is marked by significant milestones such as the first Made-in-India chip, the Kaynes Semicon ATMP unit, and strategic US-India partnerships under the TRUST initiative. The focus on advanced sensing, communication, and power electronics through the Bharat Semi and 3rdiTech partnership with the US Space Force highlights India's ambition to lead in strategic technologies.

India Semiconductor Market Scope