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India's Chip Market to Hit $300 Billion by 2035
18 Mar
Summary
- India's semiconductor market to reach $300 billion by 2035.
- Local production will meet over 60% of domestic demand by 2035.
- Government incentives are crucial for hosting multiple fabs and OSAT facilities.
India's semiconductor market is on a rapid growth trajectory, projected to reach $120 billion by 2030 and a remarkable $300 billion by 2035. This expansion is fueled by the increasing adoption of artificial intelligence, automotive sector advancements, and the growth of data centers.
Currently importing over 90% of its semiconductor needs, India is set to transform. By 2035, local production is anticipated to meet more than 60% of the country's demand. This shift will be facilitated by government initiatives like the India Semiconductor Mission (ISM).
The nation is expected to host a significant number of semiconductor facilities, including silicon, compound, and display fabs, alongside numerous Outsourced Semiconductor Assembly and Test (OSAT) facilities. These developments are attracting substantial investment and are projected to create approximately 2 million employment opportunities by 2035.
To sustain this growth, continued policy support and efficient execution are vital. This includes ensuring funding certainty beyond short-term incentives and improving coordination between national and state governments for streamlined infrastructure development. These factors will be critical for India's ambition to become a global semiconductor hub.
