India’s Semiconductor Market to Triple to $100 Billion by 2032: Report

With the Asia-Pacific region contributing about 60 per cent of global semiconductor output, India is rapidly emerging as a significant player in the sector. The country’s semiconductor market, valued at USD 34.3 billion in 2023, is projected to triple to USD 100.2 billion by 2032, registering a CAGR of 20 per cent.

The global semiconductor industry is also on a strong growth trajectory, with its market size expected to reach USD 1 trillion by 2030, expanding at a compound annual growth rate of nearly 10 per cent between 2023 and 2030, according to a Union Bank of India Research report.

India’s role in the global supply chain is already visible. In 2022, the country exported semiconductor devices worth USD 516 million, primarily to the United States, Hong Kong, and South Africa. However, imports remained significantly higher at USD 4.55 billion, with China, Singapore, and Vietnam being the main suppliers.

Two-thirds of this demand is likely to come from telecom and industrial applications, driven by mobile, IT, consumer electronics, and industrial segments. The adoption of technologies such as 5G, artificial intelligence, and electric vehicles is expected to further boost demand.

To accelerate growth in the sector, India has launched the Semiconductor Mission with an incentive outlay of USD 10 billion, aimed at developing a sustainable semiconductor and display ecosystem. The scheme includes 50 per cent incentive support on project costs for semiconductor and display fabs, along with capital expenditure assistance for compound semiconductor and assembly, testing, marking, and packaging facilities.

Alongside this, a design-linked incentive program has been introduced to promote domestic semiconductor design companies, and a talent development initiative targets the training of 85,000 semiconductor engineers.

States including Gujarat, Odisha, Tamil Nadu, and Uttar Pradesh have already introduced specific semiconductor policies, while Andhra Pradesh, Karnataka, Maharashtra, Odisha, Telangana, and others are actively attracting investments in the sector.

At the national level, policy measures such as the production-linked incentive scheme for electronics, the Make in India initiative, and the Semicon India program are propelling the country closer to self-reliance in chip manufacturing.

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