India’s semiconductor industry is poised for remarkable growth, with projections indicating that the market will exceed USD 150 billion by 2030. A recent report by Basic Roots Consulting highlights the burgeoning opportunities in AI semiconductors, which alone are expected to contribute USD 21 billion to the market by the end of the decade.
The report underscores India’s expanding semiconductor ecosystem, driven by rising incomes, increased digital adoption, and a robust domestic market projected to reach USD 110 billion by FY30. Bengaluru remains the hub for semiconductor startups, housing two-thirds of the country’s ventures. The central government has also pledged to cover half of the manufacturing costs, further bolstering the industry’s growth.
Despite the promising outlook, challenges persist. India lacks advanced semiconductor foundries and remains heavily reliant on imports for critical components such as wafers, photomasks, specialty gases, and chemicals. The high capital requirements for establishing semiconductor fabs also pose hurdles. To address these issues, the government has launched the Semicon India programme with a total outlay of ₹76,000 crore, aimed at fostering local development and reducing dependency on foreign entities.
The report also highlights the growing OSAT (Outsourced Semiconductor Assembly and Test) and ATMP (Assembly, Testing, Marking, and Packaging) ecosystems, with companies like Tata, Micron, and Keynes actively investing in advanced chip packaging and testing.
India’s semiconductor ambitions are taking shape, with over 100 startups contributing to the sector’s growth. As the country continues to navigate supply chain challenges and capital-intensive requirements, the industry’s trajectory remains a critical component of India’s economic and technological future.
