India's semiconductor market set to reach $103.5 bn by 2030

With rise in demand for electric vehicles, 5G rollouts, rapid buildout of data centres, market for advanced chips will see huge expansion

India’s semiconductor market, at $54.3 billion in 2025, is expected to touch $103.5 billion by 2030 growing at a 13.8 per cent compound annual growth rate (CAGR) -- outpacing global benchmarks, a report said on Thursday.

"The nation's semiconductor story is still anchored in the devices we use every day, smartphones, laptops, and industrial systems, which together make up about 70 per cent of the market," Quess Corp, a workforce solutions provider, said in its report.

With the rise in demand for electric vehicles, 5G rollouts, and the rapid buildout of data centres, the market for advanced chips is set for an unprecedented expansion, with the hyperscale capacity expected to grow by more than 75 per cent by 2030 and EVs targeted to make up nearly a third of all new vehicles.

The India Semiconductor Mission (ISM) is laying the foundation for domestic capability, backed by Rs1.6 lakh crore worth of projects and close to 29,000 new jobs.

Alongside this, investments such as Micron’s ATMP plant in Gujarat are strengthening packaging and testing depth, while state initiatives in regions like Tamil Nadu, Kerala, and Gujarat are helping Tier-2 clusters emerge as serious semiconductor destinations.