The India semiconductor market is notably evolving, promoted by a blend of modern electronics and strategic global partnerships. The nation is creating significant stages to become a prominent player in the global semiconductor supply chain. Traditionally, being an import-dependent, the nation is however changing its efforts to become reliant, especially in semiconductor ecosystem. Exploration of ATP operations, rising investments in electronics industry, leveraging skilled workforce along with the capability of establishing advanced packaging and testing units promote the market’s expansion in India.
The India semiconductor market has seen a considerable surge in recent years with the integration of 5G technology, rising investment by foreign players, increasing number of R&D activities along with penetration of processing units in the nation. Eventually, unfortunate events in the United States regarding the supply chain of the material have offered several opportunities for the Indian industry to grow exponentially.
The India Semiconductor Market’s future projections, according to multiple research studies are supported by the expansion of automotive industry. In 2022, Tata Motors and Hyundai announced their plan to increase the production of electric vehicles in India. This move is observed to spur the demand for advanced semiconductors required for EV batteries, power management and driving technologies. The government’s emphasis on creating cluster for semiconductors in zones such as Tamil Nadu, Andhra Pradesh and Karnataka are observed to further accelerate the growth.
Additionally, Maruti Suzuki, in 2023, planned to partner with Bosch to integrate ADAS in its new models. This collaboration promotes the increasing dependency on semiconductor technologies for boosting vehicle performance. Along with this, Mahindra Electric’s expansion in 2022 led to a surge in demand for semiconductors in the country.
The country, with the largest population is currently focusing on creating local jobs along with the emphasis on self-dependant production of goods to reduce the rate of imports. Whereas the future projection of India semiconductor market supports the creation of job opportunities, which will further boost local manufacturing and reduce the country’s dependency on imports.
Considering the continuous rise of the industry, India carries the potential to become the powerhouse of the semiconductor industry. Additionally, the nation holds the capability to tackle with the global supply chain disruptions occurred in recent years.
According to industry estimates, India’s semiconductor market is poised to reach â‚ą3,47,800 crore (US$ 40 billion) by 2030, propelled by rapid advancements in local supply chain infrastructure and the scaling up of critical materials such as specialty gases, photoresists, and high-purity chemicals essential for wafer fabrication. The momentum is further strengthened by government-backed incentives, partnerships with global chipmakers, and strategic investments in research and fabrication units (fabs).
In parallel, the India Electronics and Semiconductor Association (IESA) projects the global semiconductor supply chain to soar to â‚ą36,51,700 crore (US$ 420 billion) by 2030, with India ambitiously aiming to secure a 10% market share. This vision reflects not just a national priority but a strategic rebalancing of the global semiconductor landscape, positioning India as both a reliable manufacturing hub and a strategic innovation partner in the world’s pursuit of chip independence.
Our experts at Cervicorn Consulting believe that India’s evolving policy ecosystem, from fiscal incentives to deep R&D collaborations will play a decisive role in how swiftly the nation bridges the gap with global semiconductor leaders such as Taiwan and South Korea. Want to understand how India’s semiconductor ecosystem stacks up globally? Get in touch with Cervicorn Consulting for in-depth insights, data-driven benchmarking, and strategic guidance tailored to your business.
Major OEMs in India’s Semiconductor Ecosystem-2025
| OEM | Core Offering | Aim in Industry |
| Tata Electronics | Mega fab in Dholera (Gujarat) for power-management ICs, microcontrollers; OSAT facility in Assam for packaging and test. | Establish a fully-integrated semiconductor manufacturing and assembly ecosystem in India (fab + OSAT) |
| Kaynes Technology India | OSAT facility in Sanand (Gujarat) focusing on power electronics, industrial applications. | Build OSAT/back-end assembly & test capabilities locally to support exports and global supply-chain |
| MosChip Technologies | Offers ASIC design, embedded device solutions, and IoT platforms servicing automotive, industrial and consumer domains. | Strengthen India’s design-services capabilities for ASICs/embedded/I oT, using Indian design talent |
| HCL Technologies | Semiconductor design services (SoC, ASIC) for global OEMs, and plans for OSAT/IDM in India. | Provide end-to-end design services and foster domestic IDM capabilities through collaboration |
1. Gujarat: Gujarat has emerged as a front-runner in India’s semiconductor ecosystem due to early policy adoption, large-scale industrial infrastructure, and investor-friendly governance.
2. Tamil Nadu: Tamil Nadu leverages its strong electronics manufacturing ecosystem, skilled workforce, and strategic location for high-tech industries.
3. Karnataka: Known as India’s technology capital, Karnataka offers deep R&D capabilities, a robust talent base, and global semiconductor design expertise.
4. Uttar Pradesh: Uttar Pradesh is rapidly emerging as a semiconductor and electronics hub, supported by its skilled workforce, proximity to the NCR region, and large-scale land availability.
5. Maharashtra: Maharashtra has a diversified industrial base, advanced infrastructure in Mumbai, Pune, and Navi Mumbai, and access to highly skilled engineering talent.
1. Vedanta-Foxconn
This joint venture in 2022, partnered to establish a semiconductor manufacturing facility in Gujrat. The investment done for the same was of $19.5 billion, while it offered over 100,000 jobs in the semiconductor sector.
2. Tata Electronics
A subsidiary of the Tata Group, the company has made significant investments in assembly, testing and packaging (ATP) of semiconductors, especially in Tamil Nadu in 2022. The company has adopted green manufacturing practices to minimize the environmental impacts of its operations. Tata Electronics is prominent for investing in research and development in order to create and innovate advanced semiconductor packaging technologies.
3. Sahasra Semiconductors
The company announced its plans in 2022 to establish a semiconductor assembly and testing in Rajasthan with an allocated investment of $150 million. The project aims to support the automotive industry in its transition towards electric vehicles. Moreover, the facility aims to have the capacity of over 1 billion semiconductor units annually.
4. STMicroelectronics
A leading global semiconductor company, aimed at expanding its design and development center in Noida in 2022. The center has accelerated innovation while the company also introduced extensive training programs for its workforce in order to keep updates with technological advancements.
In order to support the research and development in the nation, the Ministry of Electronics and IT has recently announced an investment of $10 billion in India Semiconductor Mission (ISM), this investment states the government’s intention to firmly establish a hemp of semiconductor industry.
Additionally, the Make in India initiative by the Indian government aimed at boosting the manufacturing of goods in the nation while promoting self-reliance. Considering the supplementation to the semiconductor industry, the government has initiated a Production Linked Incentive Scheme for companies that establish semiconductor manufacturing facilities in India. Design Linked Incentive, Scheme for Promotion of Electronic Components & Semiconductors and Chips to Startup are other additional initiatives taken by Indian government to supplement semiconductor industry. On the other hand, the government has also increased its investment in the semiconductor industry through its Union Budget-2024 significantly.
| Investment | Year 2023 (INR Crores) | Year 2024 (INR Crores) | Percentage Increase |
| Semiconductor Manufacturing Plants | 4,500 | 5,200 | +15.6% |
| R&D | 1,200 | 1,450 | +20.8% |
| Skill Development | 3,000 | 900 | +20.0% |
| Infrastructure Development | 2,000 | 3,500 | +16.7% |
The country strategically aims to boost its manufacturing capacity to export-oriented component production to result in precise research and development. By 2026, the semiconductor industry in the country is observed to generate over 3 lakh jobs, composing diverse roles including software development, system circuits, validation and operations. The country, in next five years, holds the potential to establish facilities in assembly, testing and packaging of semiconductor. The goal is substantially supported by the development of special monetary zones (SEZs) in states like Karnataka and Tamil Nadu for electronics and semiconductor industries. Additionally, the improvement of devoted semiconductor groups in states like Gujarat and Andhra Pradesh with best in class offices.
The integration of 5G technology in the nation is all set to change the game for multiple industries across the globe. As emergence of 5G technology promise to offer precise speeds, low latency along with massive connectivity, this is also expected to promote major advancements and transformations within the semiconductor sector. For instance, Tata Electronics is all set to use of AI and IOT in its semiconductor manufacturing units to optimize operations and boost productivity. On the other hand. Tessolve, a startup, made its entry in the country after the emergence of 5G technology for testing solutions in IoT semiconductors.
For semiconductor companies in India, achieving the goal associated with 5G technologies will remain the main focus in the upcoming years. Generating higher volume of chips, integration of advanced technologies in semiconductor-based applications and establishing a strong infrastructure base in the country will be supported by the emergence of 5G technology. Automotive components, telecommunications, electronics, IT applications and medical devices are few sections that are observed to experience exponential growth with the integration of 5G technology when paired with semiconductors.
To support the fact, Vedanta-Foxconn joint venture announced the set-up of semiconductor fabrication and ATP units in India, showcasing the collaborative growth. As Indian companies expand their capabilities, they are ready to play a crucial role in the global 5G landscape. The impact of 5G technology in the country is observed to exponentially increase the integration of IoT devices and smart applications, creating a massive industry for semiconductor components.
Considering the rising emphasis on advancement in the semiconductor industry, the nation has started focusing on self-reliance for the production of the same. Similarly, government’s initiatives have offered a momentum to startups associated to the semiconductor market including chip manufacturing startups, packaging companies and chip designing startups.
Sasken Communication Technologies
Oakter
Insemi
Sannkhya Labs
Advantech
| Talent Pool | Domestic Market |
| 10Mn (STEM Talent Pipeline) | $300Bn (Electronics Production by 2026) |
| 85K+ (Semiconductor Talent Development by 2026) | $110Bn (Semiconductor Market Opportunity by 2030) |
| Largest Working Population by 2047 | 2nd Largest Manufacturer of Mobile Handsets |
India’s journey towards becoming a powerhouse of semiconductor production begins with building a strong ecosystem. The COVID-19 pandemic exposed challenges in global supply chains for countries for a longer period. In the same period, India received an opportunity to address the challenge by developing major clusters and special economic zones. For instance, in 2022, Karnatak planes to establish a dedicated semiconductor cluster in Bangalore supported by conducive businesses while supporting the local manufacturing.
Modern vehicles are heavily reliant on semiconductors for functions such as infotainment systems, engine control systems, ADAS and powertrains. With the rising demand for vehicles in the nation, the requirement of complex semiconductors is observed to surge. Thereby, the burgeoning expansion of automotive industry is observed to promote the growth of the India semiconductor market. India significantly shows the strategic relationship between the semiconductor industry and automotive one. Major domestic players such as Tata Motors, Mahindra & Mahindra, Hyundai and Toyota have shown a remarkable growth in the industry with the innovation of electric vehicles. The overall rise of electric vehicles are observed to promote the expansion of semiconductor infrastructure.
Skill Development Programs to Support the Market’s Expansion
India’s huge pool of skilled professionals, technicians and engineers is a significant factor in attracting multinational semiconductor companies. The government is heavily investing in education and training programs to enhance the country’s talent pool. Recently, the Electronics Sector Skills Council of India (ESSCI) established a collaboration with stakeholders to design training programs that align with recent market trends. These programs are observed to cover multiple aspects such as manufacturing, fabrication, testing and control of semiconductors.
India is, at a turning point in its semiconductor sector poised for changes and expansion. The rising desire for devices, automotive systems and cutting edge technologies such as 5G, artificial intelligence and the Internet of Things (IoT) is fueling the necessity for a semiconductor environment within the nation. With advancements in Indias semiconductor industry it stands ready to emerge as a center for manufacturing semiconductors and offering advanced technology product services making substantial contributions to the global supply chain and establishing itself as a frontrunner, in the semiconductor realm.