Is India’s chip market really set to reach $110 billion by 2030?

New Delhi, Aug 3 (NationPress) India is shifting from being a mere consumer to becoming a pivotal manufacturer in the global semiconductor landscape. The nation's chip market is projected to reach $100 to $110 billion by 2030, driven by strategic government initiatives. The India Semiconductor Mission, with an investment of Rs 76,000 crore, the SEMICON India Programme, and international collaborations like iCET are at the forefront of this transition, as outlined in an official statement released on Sunday.

As per industry forecasts, India's semiconductor market was valued at approximately $38 billion in 2023, expected to grow to $45-$50 billion in 2024-2025, followed by $63 billion by 2026, and eventually reaching $100-110 billion by 2030.

The upcoming Semicon India 2025, taking place in Delhi from September 2-4, will highlight India's evolving role in the global semiconductor ecosystem, featuring participation from 18 countries. This three-day event aims to unite industry leaders, innovators, academia, and government officials to foster collaboration and technological advancements throughout the supply chain.

As operational facilities come online and new projects take form, India is establishing itself as a reliable hub for semiconductor production, bolstering its digital economy, national security, and technological self-sufficiency. The chip revolution is genuinely occurring in Bharat, marking a transition from dependence to dominance.

In May 2025, the Union Cabinet sanctioned the establishment of an additional semiconductor unit under the India Semiconductor Mission, a collaborative venture between HCL and Foxconn. This facility is set to manufacture display driver chips for mobile devices, laptops, automobiles, and more, with a production capacity of 20,000 wafers per month and an output of 36 million units monthly.

During the Global Investors Summit 2025, it was revealed that India's inaugural indigenous semiconductor chip would commence production this year, with five production units currently under construction—a significant milestone for national capabilities.

To enhance the talent pipeline, the government has launched a program to train 85,000 engineers in advanced semiconductor and electronics manufacturing.

Madhya Pradesh has made notable advancements in the IT and electronics domain with the inauguration of its first IT campus, backed by a Rs 150 crore investment over the next six years. This modern facility, spanning 1 lakh square feet, is designed for comprehensive manufacturing of IT hardware and electronic products.

The plant is expected to produce a diverse range of components, from servers and motherboards to advanced technologies like drones and robotics. The initiative is anticipated to generate employment for roughly 1,200 professionals, positioning the state as an emerging center for electronics manufacturing in India.

In July 2025, Netrasemi, a startup supported by the government's chip design initiative, secured Rs 107 crore in venture capital funding. The company is focused on developing chips for smart vision, CCTV applications, and the Internet of Things (IoT).

With global demand for chips surging, the supply chain currently faces fragility due to the industry's concentration in select regions. There is an urgent need for global diversification in manufacturing, and India is poised to become a leading player in this arena.

Efforts such as incorporating Electronics Systems Design and Manufacturing (ESDM) into the Make in India initiative, along with the India Semiconductor Mission and Semicon India program, have contributed to establishing a supportive ecosystem for the industry. The global semiconductor market is forecasted to reach $1 trillion by 2030, with India expected to capture a significant share.

India is well-equipped to emerge as a vital contributor to the three primary pillars of the semiconductor manufacturing supply chain: Equipment—leveraging a robust base of MSMEs to produce components for semiconductor equipment; Materials—as a rich source of chemicals, minerals, and gases beneficial to semiconductor supply chain firms; and Services (including R&D, logistics, major talent in AI, big data, cloud computing, and IoT).