The semiconductor market in India, valued at $54.3 billion in 2025, is on track to reach $103.5 billion by 2030, with a compound annual growth rate (CAGR) of 13.8%, significantly above the global average. This is revealed in a report by Quess Corp, highlighting how the country has entered a pivotal decade for its tech industry.
According to the study, 70% of the Indian market remains concentrated in everyday devices—smartphones, laptops, and industrial systems—but the real growth driver will come from electric vehicles (EVs), the rollout of 5G networks, and the rapid expansion of data centers. Infrastructure hyperscale capacity is expected to grow by more than 75% by 2030, while EVs will account for nearly one-third of new vehicle registrations.
Massive Investment and Government Support
Government initiatives are crucial. The India Semiconductor Mission (ISM) has mobilized projects worth 1.6 lakh crore rupees (around €19 billion) and created 29,000 jobs. Simultaneously, projects like Micron’s plant in Gujarat, focusing on assembly, testing, and packaging (ATMP), are strengthening India’s value chain right on home soil.
States such as Tamil Nadu, Kerala, and Gujarat are emerging as new regional hubs, with semiconductor clusters in second-tier cities, fostering decentralization and bolstering the national ecosystem.
Kapil Joshi, CEO of Quess Corp, emphasized that the Indian industry is entering a “definitive” phase:
“The government is accelerating approval of ISM 2.0, which could exceed $10 billion. The opportunity is enormous, but the big challenge will be availability of specialized talent.”
From Back-Office to AI-Driven Design Leadership
The report underscores that India is no longer just a support hub but is gaining prominence in advanced chip design and verification. Nearly half of new semiconductor programs incorporate AI accelerators, and one-third of verification teams utilize machine learning in their processes.
Indian engineers are working on multidisciplinary integration, firmware for TinyML, AI-assisted design flows, and new automated temporary closure techniques. This makes the country a global laboratory for AI-first design workflows that are beginning to be adopted worldwide.
Talent Boom: Moving Toward Second Place Globally
India already has 250,000 semiconductor professionals and added 43,000 new jobs in 2024-25. Projections indicate this number will surpass 400,000 workers by 2030, representing over 120% growth and establishing India as the second-largest talent hub in the world, after the United States.
This human capital is spread across the entire value chain: chip design, embedded systems, development of EDA tools, and ATMP manufacturing. For Quess Corp, this confirms India’s move toward competitive self-sufficiency in semiconductors and its integration into global supply chains—not only as a consumer but as a key player in innovation and manufacturing.
Frequently Asked Questions (FAQs)
What is the current size of the semiconductor market in India?
In 2025, it reaches $54.3 billion and is expected to grow to $103.5 billion by 2030.
What sectors will drive this growth?
Primarily electric vehicles, expansion of 5G, and increased demand for data centers.
What role does the Indian government play in this expansion?
Through the India Semiconductor Mission (ISM), with over 1.6 lakh crore rupees in projects and expansion plans (ISM 2.0) that may exceed $10 billion.
Where will India stand in global semiconductor talent?
With close to 400,000 professionals by 2030, India will be the second-largest global hub for semiconductor talent, after the United States.
via: sambadenglish