India Semiconductor Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

India Semiconductor Market Growth

During the 2018-2023 period, nearly 80% of semiconductor fabrication activities were concentrated in Taiwan, China, South Korea, Japan and Singapore. As per the World Trade Organisation, increasing geopolitical tensions pose a significant threat to global semiconductor supply, which has prompted India to develop its semiconductor manufacturing capabilities to become a viable alternative to countries like China and the United States. This is creating a favourable India semiconductor market outlook.

In December 2021, the government launched the India Semiconductor Mission (ISM), which provides design-linked and production-linked incentives for domestic and multinational firms seeking to create semiconductor fabrication facilities, testing units, and design centres in India. This has prompted major players like CG Power and Kaynes Technology to invest a total amount of INR 1.5 trillion, thereby leading to the India semiconductor market development.

However, there are significant market challenges for India to become a semiconductor giant, including over-reliance on China for raw material imports. This is prompting companies to develop their ATP capabilities in the short term. ATP involves transforming silicon wafer from front-end fabs to finished chips for electronic devices and is expected to increase the India semiconductor market value in the upcoming years. It has comparatively lower labour- and capital-intensive requirements as compared to front-end semiconductor production and is expected to pave the future path for the market favourably in the coming years.

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Key Trends and Developments

India Semiconductor Market Trends

Increasing appeal for cryptocurrency mining

Cryptocurrency mining requires powerful hardware solutions and high-performance processors like Graphics Processing Units and Application-Specific Integrated Circuits to solve complex mining algorithms, which has increased the demand for advanced semiconductor solutions. As per the market analysis, investments in cryptocurrency emerged as a popular source of investment among individuals earning less than INR 5 lakh per annum, with its popularity surging by nearly 300% among Indian females in 2024. This is expected to increase the rate of India semiconductor market development in the upcoming years.

Rising adoption of 5G

Telecom operators like Bharti Airtel and Reliance Jio have driven extensive mid-band deployments. By 2030, India is expected to account for 20% of the fixed-access wireless subscriptions globally. While the monthly data consumption rate for an average smartphone user anywhere is 19 GB, 32 GB of data is used by Indians monthly. This is expected to lead to the India semiconductor market expansion in the upcoming years.

India Semiconductor Industry Segmentation

India Semiconductor Market Share

Based on region, the market is segmented into East India, West and Central India, North India, and South India. Over the forecast period of 2025-2034, the market for semiconductors in East India and South India is estimated to grow at a CAGR of 15.4% and 15.1%, respectively, due to rapid industrialisation and rising automotive production. Besides, the increasing digitalisation of business operations and the burgeoning demand for consumer electronics items are expected to favourably shape the India semiconductor market dynamics in the coming years.

Based on component, the market is divided into memory devices, logic devices, analogue IC, OSD, and micro-component. The market analysis suggests that the demand for memory devices and logic devices is estimated to grow at a CAGR of 15.8% and 15.3%, respectively, between 2025 and 2034. This can be attributed to the rising exports of smartphones from India and the rising demand for communication systems.

Leading Companies in the India Semiconductor Market

Major India semiconductor market players are making significant investments to bolster their research and development capabilities to design advanced and energy-efficient chips. By expanding their manufacturing capabilities and establishing fabrication units locally, they are also attempting to significantly reduce their reliance on imports.

HCL Technologies Limited

HCL Technologies Limited was founded in 1999 and is headquartered in Uttar Pradesh, India. It is a global technology company catering to numerous industries across 59 countries. In September 2024, its consolidated revenues totalled USD 13.7 billion.

Hon Hai Precision Industry Co., Ltd.

Hon Hai Precision Industry Co., Ltd. was founded in 1974 and is headquartered in Taiwan. It is the w...

Micron Technology, Inc.

Micron Technology, Inc. was founded in 1978 and is headquartered in Idaho, United States. It special...

Intel Corporation

Intel Corporation was founded in July 1968 and is headquartered in California, United States. It is ...

*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*

Other players included in the India semiconductor market report are Samsung Electronics Co., Ltd., Broadcom Inc., NXP Semiconductors N.V., Qualcomm Inc., Texas Instruments Incorporated., and Analog Devices, Inc., among others.