How Big is the Semiconductor Market in India?

14-Aug-2025

The India semiconductor market was valued at USD 53.2 Billion in 2024, projected to reach USD 161.0 Billion by 2033, expanding at a CAGR of 12.45% during 2025–2033. This growth is fueled by rising electronics manufacturing, AI and 5G adoption, EV proliferation, and government-led initiatives like the Production Linked Incentive (PLI) and Make in India.

India's expanding middle class, consumer electronics demand, and digitalization of industries in healthcare, auto, and telecommunication sectors are driving semiconductor consumption. In addition to this, India's strategic plans toward local manufacturing and chip design are offering industry leadership opportunities in the long term.

India semiconductor market

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Key Highlights:

The India semiconductor market was worth USD 53.2 Billion in 2024.
The market is projected to hit USD 161.0 Billion by 2033.
Estimated CAGR of 12.45% between 2025 and 2033.
Government initiatives like PLI and DLI are boosting domestic production and R&D.
The shift to EVs and renewable energy is creating new use cases for semiconductors.

What are the Key Trends Driving Growth in the India Semiconductor Industry?

Consumer Electronics Growth Boosting Chip Demand: Rising income levels and digitization are driving the consumption of smartphones, laptops, and home gadgets, spurring chip demand.
5G and AI Applications Pushing for Advanced Semiconductors: AI-driven applications and 5G rollout are increasing the need for faster and more efficient semiconductor components in sectors like telecom, enterprise computing, and consumer tech.
EVs and Renewable Energy Accelerating Power Chip Demand: Electric vehicles and renewable energy systems are fueling demand for power management and smart sensor chips for battery management, motor control, and energy conversion.
Government Schemes and Investments Reshaping Supply Chains: PLI and DLI schemes, semiconductor parks, and fabrication plant investments are transforming India's chip supply chain.

What is the Role of Technology in the India Semiconductor Market?

Technological advancements such as AI, ML, and IoT are propelling India’s emerging semiconductor ecosystem. Government-backed R&D support and collaboration with global tech leaders are fostering innovation in energy-efficient devices and chip architectures for future-ready AI applications. Advanced chip design, use of materials like silicon carbide and gallium arsenide, and precision manufacturing are reshaping production capabilities.

What are the Market Dynamics?

Driver: Increasing Demand from AI, EV, and 5G Sectors

New-age technologies such as AI, 5G, IoT, and electric vehicles are increasing the complexity and volume of semiconductor demand across multiple verticals in India.

Opportunity: Localization and Global Partnerships

Government schemes are encouraging domestic chip production, with joint ventures and MOUs between Indian firms and global giants fostering sustainable growth.

Segment Insights:

What is the Market Breakup by Components?

The market includes memory devices, logic devices, analog ICs, MPUs, discrete power devices, MCUs, sensors, and others. Each plays a role in core applications like mobile computing, automotive controls, and industrial automation.

What is the Market Breakup by Material Used?

Key materials include silicon carbide, gallium manganese arsenide, copper indium gallium selenide, molybdenum disulfide, and others, each selected for use-case specific advantages in speed, power efficiency, or thermal stability.

What is the Market Breakup by End User?

Major end users are automotive, industrial, data centers, telecommunication, consumer electronics, aerospace and defense, healthcare, and others. Consumer electronics and EV sectors are currently the major demand centers.

Regional Insights:

Region	Key Highlights
South India	Emerging as a semiconductor hub with planned investments in Karnataka and Tamil Nadu; strong IT & engineering workforce; government-backed research clusters
North India	Uttar Pradesh becoming a focal point with upcoming fabrication projects near Jewar Airport; rising relevance in semiconductor production
West & Central India	Gujarat leading with upcoming semiconductor parks and supporting infrastructure; major contributor to India’s localization efforts
East India	Currently less emphasized, but holds growth potential as infrastructure and policy incentives expand

Key Benefits of the Report:

Comprehensive Market Forecasts: Gain access to full market size projections across 2025–2033 by segment and region.
Data-Driven Market Trends: Understand major forces shaping remittance flows, investment behavior, and export-driven forex dynamics.
Technology Integration Analysis: Assess the impact of semiconductor innovations, AI-driven tools, and blockchain technologies in the Indian semiconductor market.
Regional Performance Insights: Explore the economic roles of each major region and their contributions to India’s real estate sector.
Strategic Market Intelligence: Make informed business and investment decisions with data-backed research and actionable analysis.
Competitive Environment Overview: Explore how semiconductor companies, tech startups, and industry partnerships are driving competition and innovation in the Indian semiconductor market.

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