India Semiconductor Market Report by Components (Memory Devices, Logic Devices, Analog IC, MPU, Discrete Power Devices, MCU, Sensors, and Others), Material Used (Silicon Carbide, Gallium Manganese Arsenide, Copper Indium Gallium Selenide, Molybdenum Disulfide, and Others), End User (Automotive, Industrial, Data Centre, Telecommunication, Consumer Electronics, Aerospace and Defense, Healthcare, and Others), and Region 2025-2033

India semiconductor Industry Overview:

The India semiconductor market size is estimated at USD 53.2 Billion in 2024, and is expected to reach USD 161.0 Billion by 2033, at a CAGR of 12.45% during the forecast period (2025-2033). The India semiconductor market is witnessing a significant transformation due to strong government support, increasing electronics manufacturing, and rising demand from AI, 5G, and EV sectors. With initiatives like the Production Linked Incentive (PLI) scheme as well as the ‘Make in India’ campaign, the country is poised to emerge as a global semiconductor hub. This report provides an in-depth analysis of the India semiconductor market size, trends, government policies, manufacturing opportunities, and forecasts up to 2033.

A semiconductor is a material with electrical conductivity ranging between that of an insulator and a conductor. In its crystalline form, it possesses unique electronic properties, making it a crucial component in modern electronics and technology. Semiconductors are characterized by their ability to regulate the flow of electric current by responding to external stimuli such as voltage, light, or heat. The most common material in the semiconductor market in India, widely used in electronic devices due to its abundance and controllable electrical properties, is silicon. Other semiconductor materials include gallium arsenide, germanium, and silicon carbide, each offering specific advantages in different applications. Semiconductors are the foundation of various electronic components, such as diodes, transistors, and integrated circuits (ICs). These components are essential for amplifying signals, switching currents, and processing information in electronic devices ranging from computers and smartphones to automotive systems and communication networks. As technology continues to advance, the semiconductor industry evolves rapidly to produce smaller, faster, and more power-efficient devices.

India Semiconductor Market Trends/Drivers:

The Indian semiconductor market is experiencing robust growth, primarily driven by the burgeoning population of the country, rising disposable incomes, and a growing middle class resulting in increased consumer demand for electronic devices, such as smartphones, laptops, and other smart gadgets. In addition, with the advent of new technologies like the fifth generation (5G), the Internet of Things (IoT), and artificial intelligence (AI), there are further opportunities for semiconductor firms to deliver sophisticated chips and components in order to meet these changing needs. Moreover, the high-pace digitization in different industries of the nation, including telecommunications, healthcare, automotive, and industrial automation, has powered the demand for semiconductor-based solutions to accommodate growing digital infrastructure, driving the India semiconductor market growth. According to this, the efforts of the Government of India (GOI) in launching different initiatives and policies focused on spurring domestic production under the 'Make in India' campaign are supporting the semiconductor industry. Such policies are providing tax incentives, tax relief, and eased rules to draw foreign investment and promote local production of electronic products, such as semiconductors. Along with this, the universal transition towards electric vehicles (EVs) and higher renewable energy penetration globally has further boosted the growth of the semiconductor market size in India. As EV adoption increases, there is a rising demand for semiconductor components used in electric powertrains, battery management systems, and advanced driver-assistance systems (ADAS), which, in turn, is aiding in the expansion of India semiconductor market size.

India is swiftly emerging as a strategic hub in the global semiconductor landscape due to increasing demand across critical sectors like consumer electronics, telecommunications, and electric vehicles. The digital economy's rapid growth, coupled with rising localization in manufacturing, has intensified the need for a domestic semiconductor base. To meet this demand, the Government of India has introduced initiatives such as the Production Linked Incentive (PLI) and Design Linked Incentive (DLI) schemes, aiming to attract investments, boost R&D, and build long-term capacity. Major global players are exploring entry, and Indian start-ups are innovating in chip design, which highlights the promising future of semiconductor industry in India.

The focus is not only on fabrication but also on developing a full-stack ecosystem that includes assembly, testing, and packaging. These efforts are beginning to create an enabling environment for private and public sector collaboration, skill development, and infrastructure expansion. As these efforts scale, India is poised to reduce import dependency and establish itself as a reliable global supplier. Multiple semiconductor parks are planned in regions such as Gujarat, Tamil Nadu, and Karnataka, supported by research clusters and government-backed funding. The ramp-up in design and testing capabilities will be crucial to long-term success in semiconductor manufacturing in India 2025.

These developments position India for substantial growth, reflecting strong potential for job creation, export competitiveness, and supply chain resilience. As policy execution strengthens, India’s semiconductor ecosystem is expected to flourish and integrate deeper into the global value chain. The country’s large talent pool in engineering and IT offers a strong foundation for sustained innovation. Moreover, rising global concerns over supply chain diversification increase India’s appeal as a stable partner. With consistent policy support and global alliances, India is set to become a semiconductor powerhouse in the coming decade.

India Semiconductor Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India semiconductor market report, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on components, material used, and end user.

Breakup by Components:

• Memory Devices
• Logic Devices
• Analog IC
• MPU
• Discrete Power Devices
• MCU
• Sensors
• Others

The report has provided a detailed breakup and analysis of the market based on the components. This includes memory devices, logic devices, analog IC, MPU, discrete power devices, MCU, sensors, and others.

Breakup by Material Used:

• Silicon Carbide
• Gallium Manganese Arsenide
• Copper Indium Gallium Selenide
• Molybdenum Disulfide
• Others

A detailed breakup and analysis of the market based on the material used has also been provided in the report. This includes silicon carbide, gallium manganese arsenide, copper indium gallium selenide, molybdenum disulfide, and others.

Breakup by End User:

• Automotive
• Industrial
• Data Center
• Telecommunication
• Consumer Electronics
• Aerospace and Defense
• Healthcare
• Others

The report has provided a detailed breakup and analysis of the market based on the end user. This includes automotive, industrial, data center, telecommunication, consumer electronics, aerospace and defense, healthcare, and others.

Breakup by Region:

• South India
• North India
• West and Central India
• East India

The report has also provided a comprehensive analysis of all the major regional markets, which include South India, North India, West and Central India, and East India.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the market. 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. The companies in the market are adopting various strategic initiatives including new product launches and business alliances to gain a significant India semiconductor market share.

Latest Developments in the India Semiconductor Market (2025):

• May 2025: India's cabinet approved INR 37.06 Billion (USD 435 Million) semiconductor fabrication plant, a joint venture between HCL Group and Taiwan's Foxconn, to be built near Jewar Airport, Uttar Pradesh. The plant will manufacture up to 36 million display driver chips per month with commercial production targeted for 2027, marking the sixth project under the India Semiconductor Mission. This development significantly boosts the India semiconductor market by addressing domestic chip demand across mobile, automotive, and computing sectors.
• May 2025: Ather Energy and Infineon Technologies signed an MoU to jointly advance India’s EV ecosystem by integrating Infineon's energy-efficient semiconductor solutions into Ather’s electric scooters and charging systems. The collaboration leverages advanced SiC and GaN technologies to enhance EV performance and safety, highlighting the critical role of semiconductor innovation in India’s growing electric two-wheeler and electronic components market.
• May 2025: Renesas Electronics signed two MOUs with India’s Ministry of Electronics & IT under the Chips to Startup (C2S) programme to support over 250 academic institutions and 15 startups in VLSI and embedded semiconductor systems. The company inaugurated expanded offices in Bengaluru and Noida, aiming to grow its Indian R&D headcount to 1,000 by end-2025 and generate over 10% of global revenue from India by 2030. This reinforces India's ambitions in electronic components and semiconductor design, strengthening the domestic innovation ecosystem.
• March 2025: The Government of India announced that the PLI scheme attracted INR 1.61 Lakh Crore (USD 18.72 Billion) in investments, generated INR 14 Lakh Crore (USD 162.84 Billion) in production, and INR 5.31 Lakh Crore (USD 61.76 Billion) in exports, while creating 11.5 lakh jobs. With 764 applications approved, including 176 MSMEs, the scheme is strengthening domestic manufacturing of high-value products like electronic components, which is expected to bolster India’s semiconductor market development.

India Semiconductor Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India semiconductor market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India semiconductor market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India semiconductor industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.