India's semiconductor demand is projected to nearly double to approximately $90 billion by 2029-30, up from roughly $44 billion in 2025-26, as the country harnesses policy support, rising domestic consumption, and a deep pool of engineering talent to build a globally competitive chip ecosystem, according to a joint report released on Friday, 18 September 2026.

Key Findings of the Report

The joint report by KPMG in India, the India Deep Tech Alliance (IDTA), and Nishith Desai Associates (NDA) identifies mobile and wearables as the single largest demand segment, with projected consumption of approximately $42.13 billion by 2029-30. That figure alone represents nearly half of India's total anticipated semiconductor market by the end of the decade.

The report underscores that India's semiconductor ambitions extend well beyond chip fabrication. The strategy, aligned with India's existing demand profile and engineering strengths, covers semiconductor design, advanced packaging, equipment and materials, research and development, talent pipelines, supply chain integration, and commercialisation of new technologies.

India's Patent Landscape

The report mapped India's semiconductor patent activity over the decade ending June 2026, recording approximately 78,000 published patent applications and around 28,000 grants during the period. Within technology categories, semiconductor accelerators accounted for roughly 92 per cent of all filings.

Notably, patents in advanced packaging, high-bandwidth memory, and chiplets — all areas facing global supply constraints — remain comparatively thin in India's portfolio. Packaging filings are spread across bonding, interconnect, interposer, and thermal and power technologies, which the report identifies as an area where India can build capability without the capital intensity required for leading-edge wafer fabrication.

What Industry Leaders Said

Arun Kumar, Chair of the Executive Committee at the India Deep Tech Alliance, said India's semiconductor opportunity 'is no longer simply about whether the country can participate in the global semiconductor industry; it is about how rapidly and how deeply we can build capabilities that are globally competitive.'

Akhilesh Tuteja, Partner and National Leader — Clients and Markets at KPMG in India, stated that semiconductors 'are no longer just an enabler of digital transformation but have become a cornerstone of technological sovereignty, economic resilience and national competitiveness.'

Why This Matters for India

India's semiconductor push sits at the intersection of industrial policy, geopolitical positioning, and technology sovereignty. With the global chip supply chain continuing to diversify away from a handful of Asian hubs, India's combination of engineering talent and a large domestic consumption base gives it a credible entry point — particularly in design and packaging, where capital requirements are lower than in wafer fabrication. This comes amid active government incentive schemes and growing interest from global chipmakers looking to de-risk supply chains.

The trajectory from $44 billion to $90 billion in four years signals that the market opportunity is real; the question the industry now faces is whether execution — across talent, infrastructure, and IP depth — can match the pace of demand growth.