India’s semiconductor market is poised for a transformational decade, with industry leaders projecting it to surpass $100 billion by 2030. According to a report by the India Electronics and Semiconductor Association (IESA), the country could cater to nearly 8–10% of global demand, amounting to $40 billion, if policy momentum and execution continue at pace.
Ashok Chandak, President of IESA, highlighted that India has already made significant progress under the Semicon India programme but stressed that the sector requires long-term support.
“It is very clear that the semiconductor industry is a long haul. One programme or a few years of efforts is just the beginning and a starting point… this programme needs to continue for an additional five to ten years minimum, so that it becomes more impactful and self-sustainable in the future,” he said.
Chandak underlined that the next phase, dubbed “Semicon 2.0,” must expand its scope. “The previous one was $10 billion. Equal or more would be welcome, surely. And also the expectation is that this time, it could cover the wider range of topics, including the supply chains, particularly materials, chemicals, and gases.”
On the design front, Chandak pointed out that India already accounts for nearly 20% of the global semiconductor design workforce. He noted that more than 300 institutes now have access to electronic design automation tools under the government’s design-linked incentive scheme, calling it “one of the world’s largest government-supported programmes.”
Despite geopolitical uncertainties, Chandak maintained that India must adopt a balanced global approach.
“No country is able to fulfil 100% of its value chain and demand on its own. We need to establish proof points by executing our currently announced projects… and build interdependence with multiple countries,” he said, citing active interest from global players in the upcoming Semicon India 2025 event.
On capacity creation, Chandak revealed that 10 central government-approved projects and several state-supported initiatives are already underway. “All these projects put together, there is a capacity of about 80 million chips per day… at least three plants would be in pilot production this year,” he said, adding that full-scale operations could enable India to produce 70–72 million chips daily within the next two years. CNBCTV18