India’s semiconductor industry is on a rapid growth trajectory, with projected end-demand revenues expected to reach $108 billion by 2030, doubling from $54 billion in 2025, according to a new UBS report. The compound annual growth rate (CAGR) for this period is estimated at 15%, outpacing the global average due to India’s unique advantages, including a booming electronics market, increasing adoption of advanced chips by businesses, and robust government incentives.
The report highlights that localisation efforts could generate up to $13 billion in revenue by 2030. This points to growing opportunities for domestic manufacturing, though challenges remain. Despite the promising demand, India still contributes only 0.1% to global wafer capacity, less than 1% of worldwide equipment spending, and holds a 6.5% share of semiconductor end-market demand.
Several international technology companies are reevaluating their manufacturing strategies amid ongoing global tariff tensions. Many are adopting a “China plus one” strategy, seeking alternative locations for chip assembly outside China. India is emerging as a strong contender, thanks to its deep talent pool in software and chip design—around 20% of global semiconductor designers currently operate from India, working for multinational firms.
By 2025, India has achieved $54 billion in semiconductor-related revenues, representing 6.5% of the global chip market. While the U.S. and mainland China continue to dominate in terms of end-market size, India’s growing relevance is undeniable. The next five years are expected to be transformative, positioning the country as a rising force in the global semiconductor ecosystem.
