The India computer microchips market size reached USD 5.23 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 14.53 Billion by 2033, exhibiting a growth rate (CAGR) of 11.12% during 2025-2033. The market is driven by rising domestic semiconductor demand, widespread adoption of artificial intelligence (AI) and Internet of Things (IoT) technology, expanding data centers, increasing smartphone penetration, surging global supply chain shifts, and rising investments in chip manufacturing infrastructure.
Report Attribute
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Key Statistics
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Base Year
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2024 |
Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 5.23 Billion |
Market Forecast in 2033 | USD 14.53 Billion |
Market Growth Rate (2025-2033) | 11.12% |
Government Initiatives and Local Manufacturing Boom
The India computer microchip market is significantly expanding due to the official backing for local semiconductor production. In line with this, the Production-Linked Incentive (PLI) scheme has encouraged the global semiconductor companies to establish fabrication and assembly plants in India through its local chip production incentives. Moreover, the "Make in India" and "Digital India" programs together speed up the development of domestic semiconductor manufacturing which helps India decrease its reliance on imported components. Besides this, semiconductor fabs established in Gujarat and Karnataka states make India a leading force in worldwide chip supply networks. For example, in February 2024, the joint venture between Tata Electronics and Powerchip Semiconductor Manufacturing Corp (PSMC) of Taiwan unveiled their plans for building a semiconductor fabrication unit at Dholera, Gujarat. They allocated ₹91,000 crore for this project. The project intends to enhance India's semiconductor production facilities while decreasing its dependence on imports. Furthermore, strategic alliances between the Indian government and Vedanta-Foxconn, along with Tata Electronics, enhance the existing semiconductor framework. Apart from this, the infrastructure improvements in semiconductor research and chip manufacturing enable India to establish itself as a leading force in the worldwide semiconductor market while drawing substantial foreign direct investments from abroad. This trend is boosting the India computer microchips market share.
Rising Demand for AI, IoT, and Edge Computing Chips
The India computer microchips market outlook is experiencing transformation due to the rising use of AI, IoT, and edge computing technologies. In addition, industries integrate AI-driven automation along with smart devices, boosting the demand for high-performance chips. Moreover, expanding 5G network deployment and connected technology adoption throughout India creates an urgent demand for sophisticated microprocessors as well as memory chips and AI acceleration systems. Concurrently, the healthcare sector, automotive industry, and consumer electronics industries spend on AI-driven microchips because customized solutions improve both processing speed and real-time functionality. For instance, in August 2024, Ola announced plans to launch India's first in-house AI chip by 2026, based on Advanced RISC Machine (ARM) architecture. This initiative aims to reduce reliance on foreign chips and bolster domestic semiconductor capabilities. Also, the active startup sector within India, which focuses on AI and IoT innovations, is creating new opportunities for chip development. Cloud computing services and expanding data centers have increased the need for semiconductor technology, which provides both speed and energy efficiency. As a result, Indian semiconductor companies now direct their efforts toward creating AI-optimized chips and form alliances with international firms to develop advanced technological skills that align with present and future digital developments. This is significantly driving the India computer microchips market growth.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on product type and end user.
Product Type Insights:
The report has provided a detailed breakup and analysis of the market based on the product type. This includes integrated device, fabless, and foundry.
End User Insights:
A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes consumer electronics, automotive, healthcare, and military and civil aerospace.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include North, South, East and West India.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Billion USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Product Types Covered | Integrated Device, Fabless, Foundry |
End Users Covered | Consumer Electronics, Automotive, Healthcare, Military and Civil Aerospace |
Regions Covered | North India, South India, East India, West India |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |