India's semiconductor industry is poised for a significant leap in revenue, projected to grow from $54 billion in 2025 to $108 billion by 2030, according to a recent report by UBS, a global financial services firm. This projected growth represents a compound annual growth rate (CAGR) of 15%, which outpaces the global semiconductor market’s average growth rate. The UBS report attributes this acceleration to India’s strong electronics demand, a burgeoning talent pool, and proactive government policies.
Many companies have already initiated the “China plus one” strategy to diversify their manufacturing base and reduce dependence on Chinese operations. India is increasingly being considered a viable option, thanks to its political stability, cost-effectiveness, and government-backed production-linked incentive (PLI) schemes.
One of the key drivers of India’s semiconductor surge is the growing push for localisation. The UBS report estimates that local production could contribute an additional $13 billion to India’s semiconductor revenue by 2030. This is expected to come from domestic assembly and packaging units, which are likely to benefit from central and state-level incentives designed to attract semiconductor fabs and infrastructure investment.
While India currently contributes a modest 0.1% to global wafer fabrication capacity and 1% to annual semiconductor equipment spending, it holds a strategic advantage in human capital. Approximately 20% of the world’s chip designers are based in India, many working for multinational corporations. This vast talent pool plays a crucial role in global chip innovation and design, giving India a competitive edge in upstream semiconductor value chains.
Unlike mainland China, which dominates in tech manufacturing, India’s strength lies in its software and services sector. This positions the country uniquely to integrate semiconductor design with the larger ecosystem of digital services and electronics.
India’s large and growing population continues to drive high demand for consumer electronics, mobile devices, and enterprise technology. The surge in semiconductor demand is further supported by rapid digitalisation, 5G rollout, increased electric vehicle adoption, and the proliferation of AI and cloud computing technologies.
According to UBS, India’s semiconductor end-demand share currently stands at 6.5%, amounting to $54 billion in 2025. This makes India a significant market for global chipmakers, even though domestic production and infrastructure are still developing.
The Indian government has played an instrumental role in nurturing the semiconductor ecosystem through a series of targeted initiatives. These include the Semiconductor Mission, PLI schemes for electronics manufacturing, and subsidies for setting up semiconductor fabs and R&D centers. Such policy support is expected to draw investments from major global players, including partnerships with countries like the US, Japan, and Taiwan.
UBS notes that while uncertainties remain, especially given the volatility in global trade policies, India’s strategic importance in the semiconductor industry is rising steadily. The country’s demographic advantage, policy push, and tech-savvy workforce provide a strong foundation for sustained growth in this critical sector.