India's Semiconductor Demand Set to Double by 2030 Amid AI Surge

India's semiconductor industry is at the threshold of a turning point. The end-user requirements are poised to double from USD 54 billion in 2025 to over USD 108 billion by 2030, propelled by AI, EVs, telecom, IoT, and more.

The urgency for India to increase domestic chip manufacturing is clear from a recently published UBS report, which notes that the country imports approximately 90% of its semiconductor needs.

India's semiconductor industry boasts 20% of the global chip design workforce but only a measly 0.1% of global wafer manufacturing. Fortunately, the situation is changing quickly. India is preparing to become a global chip player, with the full backing of a USD 10 billion government incentive through India’s Semiconductor Mission.

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Some major projects, such as Tata Group's semiconductor fab in Assam, the HCL - Foxconn OSAT plant in Uttar Pradesh, and Micron's ATMP unit in Gujarat, are expected to be operational by mid-2025. India is on the right path to increase domestic availability of mature-node chips and advanced packaging capacity for semiconductor industry while employing thousands of new workers.

The government is also investing heavily in talent pipelines, with the Chips-to-Startup (C2S) and Design-Linked Incentive (DLI) schemes empowering over 270 institutions and enabling the development of 20 indigenous chipsets by Indian engineers.

While challenges like capital intensity, skill gaps, and advanced node limitations persist, India’s semiconductor future looks stronger than ever, aligning national manufacturing goals with rising global tech demand.