New Delhi, March 17 India's semiconductor market is projected to nearly triple to USD 120 billion by 2030 and reach USD 300 billion by 2035, driven by the exponential adoption of artificial intelligence (AI), automotive growth, and data center expansion, according to a report by Deloitte.
India, which currently imports over 90 per cent of its semiconductor needs, is poised for a structural shift as local production is expected to meet more than 60 per cent of domestic demand by the end of 2035, the report titled 'Technology, Media, and Telecommunications Predictions 2026' said.
"India’s semiconductor market is estimated at USD 45–50 billion in FY2024–25 and has been growing at a CAGR of 20 per cent over the past three years. The market is predicted to reach USD 120 billion by 2030 and USD 300 billion by 2035, driven by AI, automotives, data centers, and electronics manufacturing."
"By 2035, India is expected to host 4–5 silicon fabs, 8–10 compound fabs, 1–2 display fabs, and 20–25 OSAT facilities, supported by ISM and state-level incentives," the report said, adding that by 2035, 60 per cent of the country's domestic semiconductor demand is expected to be met through local production.
By 2035, various segments, such as mobile phones, automotive, computing, and data centers, are expected to account for more than 70 per cent of the total semiconductor demand in the country.
Supported by the government's India Semiconductor Mission (ISM), the sector has already attracted over USD 19 billion in manufacturing investments across 10 approved projects, which include eight Outsourced Semiconductor Assembly and Test (OSAT) facilities, one compound fab, and one semiconductor fab.
Another 18-20 proposals with a total investment of USD 20-25 billion are currently in the pipeline at various stages, Deloitte pointed out.
"Over the next five years, the semiconductor industry in India is predicted to attract an additional USD 50 billion in capital investment," the report stated, adding that another USD 75-80 billion investment is expected between 2030 and 2035 that will enable ecosystem expansion.
The expansion of the semiconductor ecosystem will also trigger massive job creation. The industry is forecast to provide approximately 2 million employment opportunities by 2035. Of this, about 30 per cent will be in manufacturing operations, 30 per cent in design services, and the remaining 40 per cent across the rest of the value chain.
To support this scale-up, the sector will need to train 4,00,000 to 5,00,000 people annually through relevant courses, fab and ATMP labs, and training facilities, the report said.
However, Deloitte cautioned that sustaining this momentum will depend heavily on execution.
The report recommended that the policy environment must evolve from a time-bound incentive scheme into a structurally embedded national program to ensure funding certainty beyond annual budget cycles.
It also stressed the need for improved coordination between the Centre and states to implement a single-window execution framework for land, utilities, and infrastructure delivery.