India's Rising Role in Semiconductor Manufacturing Highlighted at Carnegie Global Technology Summit

John Neuffer, President and CEO of the US-based Semiconductor Industry Association (SIA), has emphasized the rapid diversification of the global semiconductor supply chain, pointing to a major opportunity for India to strengthen its position in this vital sector.

Neuffer, speaking at the flagship dialogue of the Carnegie Global Technology Summit, highlighted India's promising role in the global semiconductor ecosystem. Representing the Semiconductor Industry Association (SIA)- which includes major players like AMD, Nvidia, and TSMC-Neuffer specifically underscored India's potential in the production of Printed Circuit Boards (PCBs), a critical element in the semiconductor supply chain.

“Increased diversification of the supply chain is inevitable,” Neuffer said in an exclusive interview on the sidelines of the Carnegie Global Technology Summit. “This shift began in earnest after the pandemic exposed vulnerabilities and excessive concentrations within the existing supply chain. That opens up significant opportunities for India to absorb a larger share of it.”

India and the United States are actively working together to strengthen capabilities in artificial intelligence and to diversify supply chains for critical technologies.

During Prime Minister Narendra Modi's visit to the United States in February this year, he and President Donald Trump announced the launch of the US-India TRUST initiative, transforming the Relationship Utilizing Strategic Technology. The initiative aims to foster collaboration among governments, academia, and the private sector to advance the application of critical and emerging technologies in areas such as defense, artificial intelligence, semiconductors, quantum computing, biotechnology, energy, and space.

India has made notable progress in semiconductor manufacturing in recent years, with major Indian conglomerates like Tata, Adani Group, and Larsen & Toubro (L&T) entering and expanding their presence in the sector.

According to a report by global investment bank Jefferies, India is well-positioned to emerge as a major semiconductor hub, driven by supportive government policies, rising domestic demand, cost-effective manufacturing, and strong strategic ties with Western countries.

India's Semiconductor Market to Double by 2030:

According to a report by financial services firm UBS, the Indian semiconductor industry's end-demand revenues are projected to double from $54 billion in 2025 to $108 billion by 2030. The report also predicts that revenues from localisation opportunities will remain steady at around $13 billion by 2030.

"We expect its semiconductor end-demand revenues to double from 2025 to 2030, growing from $54 billion to $108 billion. So we see strong growth ahead for the market, including a localisation opportunity where we anticipate $13 billion in revenues in 2030," the report added.

The UBS report also highlighted that India's semiconductor end market is expected to grow at a 15% compound annual growth rate (CAGR) from 2025 to 2030, with annual revenues reaching $108 billion by 2030. This growth rate is forecasted to outpace the global semiconductor market, driven by India's favorable demographics, strong electronics demand, increasing enterprise adoption of advanced semiconductors, and supportive government policies.

According to the report, India currently holds just 0.1% of global wafer capacity, approximately 1% of annual equipment spending, and a 6.5% share of semiconductor end-demand.

The UBS report also noted that major tech companies are considering relocating their supply chains due to ongoing tariff uncertainties. Some companies have already begun implementing a "China plus one" strategy by diversifying their final assembly locations beyond China.

India's tech strength primarily stems from its vast talent pool in the software and services sector, while mainland China's dominance lies in tech manufacturing.

Despite ongoing uncertainties, the US and mainland China remain the leading end-markets for semiconductors. India, with a 6.5% share, is a strong end-market, projected to generate $54 billion in revenues by 2025.