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Key Points

India's semiconductor market is on a rapid growth trajectory, expected to nearly double by the end of the decade. The expansion is fueled by rising demand across electric vehicles, 5G infrastructure, and data center development. With significant government backing through the India Semiconductor Mission and major investments like Micron's plant, the country is building comprehensive capabilities across the value chain. India is also developing into a global talent hub, projected to become the world's second-largest semiconductor workforce after the United States.

Key Points: India Semiconductor Market to Hit $103.5 Billion by 2030

  • Market to grow at 13.8% CAGR from $54.3B in 2025 to $103.5B by 2030
  • EVs and data centers driving unprecedented chip demand expansion
  • India Semiconductor Mission backed by Rs 1.6 lakh crore in projects
  • Talent pool to grow 120% to 400,000 professionals by 2030
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India's semiconductor market is expected to reach $103.5 billion by 2030

India's semiconductor market is projected to reach $103.5 billion by 2030, driven by EVs, 5G, and data centers, with talent pool doubling to 400,000 professionals.

"India’s semiconductor industry is entering a defining decade. – Kapil Joshi, Quess Corp"

New Delhi, Sep 11

India’s semiconductor market, at $54.3 billion in 2025, is expected to touch $103.5 billion by 2030 growing at a 13.8 per cent compound annual growth rate (CAGR) -- outpacing global benchmarks, a report said on Thursday.

"The nation's semiconductor story is still anchored in the devices we use every day, smartphones, laptops, and industrial systems, which together make up about 70 per cent of the market," Quess Corp, a workforce solutions provider, said in its report.

With the rise in demand for electric vehicles, 5G rollouts, and the rapid buildout of data centres, the market for advanced chips is set for an unprecedented expansion, with the hyperscale capacity expected to grow by more than 75 per cent by 2030 and EVs targeted to make up nearly a third of all new vehicles.

The India Semiconductor Mission (ISM) is laying the foundation for domestic capability, backed by Rs 1.6 lakh crore worth of projects and close to 29,000 new jobs.

Alongside this, investments such as Micron’s ATMP plant in Gujarat are strengthening packaging and testing depth, while state initiatives in regions like Tamil Nadu, Kerala, and Gujarat are helping Tier-2 clusters emerge as serious semiconductor destinations.

“India’s semiconductor industry is entering a defining decade. As the Government of India fast-tracks approvals for ISM 2.0, which is likely to exceed $10 billion, our report highlights both the scale of opportunity and the challenges in the talent readiness aspect," said Kapil Joshi, CEO–IT Staffing, Quess Corp.

From everyday-use devices to electric vehicles and advanced data centres, demand is expanding across the board, and India is becoming an integral part of global supply chains. What makes this story unique is the combination of scale and capability, he added.

India’s semiconductor global capabilities centres (GCCs) are no longer back-end support units. Almost half of new chip programmes now include AI accelerators, and one-third of verification teams are using machine learning.

"Engineers here are already working on next-gen domains such as multi-die integration, AI-assisted place-and-route, TinyML firmware, and AI-driven timing closure. These advances make India a testing ground for AI-first design workflows that global players are beginning to adopt," the report noted.

India already has more than 250,000 semiconductor professionals, with 43,000 new postings in 2024–25.

This pool is projected to grow by over 120 per cent to nearly 400,000 by 2030, making India the world’s second-largest semiconductor talent hub after the US.

The workforce spans across design, embedded systems, EDA tool development, and ATMP manufacturing, showing that India is building capability across the entire value chain, the report stated.

- IANS

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Reader Comments

R
Rahul R
Great to see states like Tamil Nadu and Gujarat leading the charge. We need more manufacturing hubs beyond the usual metros. Hope this creates opportunities in tier 2 cities as mentioned.
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Arun Y
While the numbers look impressive, I hope we're not just focusing on quantity but also quality. We need world-class R&D facilities, not just assembly plants. The AI and ML integration mentioned is promising though.
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Sarah B
As someone working in tech, this is exciting! The shift from back-end support to actual chip design and AI accelerators shows how our talent is evolving. More companies should invest in upskilling programs.
Karthik V
The EV angle is particularly interesting. With electric vehicles becoming mainstream, semiconductor demand will skyrocket. Perfect timing for India to enter this space! 🚗⚡
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Michael C
Impressive growth projections! However, I hope the government ensures proper environmental regulations for semiconductor manufacturing. It's a resource-intensive industry that needs sustainable practices.
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Neha E
️ 400,000 professionals by 2030! This means our engineering colleges need to update their curriculum to include semiconductor design and manufacturing. Industry-academia collaboration is crucial.

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