India’s Semiconductor Sector Expected to Reach $108 Billion by 2030: UBS Report
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Synopsis
A recent UBS report indicates that the Indian semiconductor industry is set to double its revenue to $108 billion by 2030. This growth is driven by favorable demographics, increased demand for electronics, and strategic relocations of global supply chains amidst US-China trade tensions.
Key Takeaways
- Projected revenue growth from $54 billion to $108 billion.
- Benefit from US-China tariff conflicts.
- Localization opportunities worth $13 billion by 2030.
- 15% CAGR forecast, surpassing global market growth.
- 20% of global chip designers are in India.
New Delhi, April 13 (NationPress) The revenue of the Indian semiconductor industry is projected to increase from $54 billion to $108 billion from 2025 to 2030, as per a report published by the financial services firm UBS.
The report anticipates that India will benefit from the ongoing US-China tariff conflict, positioning the nation as a viable alternative for global corporations aiming to establish supply chains.
Furthermore, the report highlights promising growth prospects for the market, including a localization opportunity, which is expected to yield $13 billion in revenues by 2030.
UBS has predicted a 15 percent compound annual growth rate (CAGR), which surpasses its forecast for the global semiconductor end market. This growth is fueled by India’s favorable demographics, which drive robust demand for electronics (and subsequently for semiconductors), increasing enterprise adoption of advanced semiconductors, and supportive government policies.
Currently, India holds merely 0.1 percent of the global wafer capacity, around 1 percent of annual equipment expenditure, and a 6.5 percent share of semiconductor end-demand, according to the report.
Major technology firms are reportedly reconsidering their supply chain locations in light of the tariff uncertainties initiated by the Trump administration in the US.
Several companies have already begun implementing their “China plus one” strategy by diversifying their final assembly sites beyond China, as noted in the report.
India’s technological edge primarily stems from its expansive talent pool within the software and services sector, while China maintains its supremacy in tech manufacturing.
In the semiconductor field, India possesses a unique strength, with approximately 20 percent of global chip designers operating in the nation for multinational corporations, according to the report.
Despite these challenges, both the US and China remain the leading end-markets. India, with a 6.5 percent share, represents a significant end market for global semiconductors, with projected revenues of $54 billion in 2025, as reported.
