NEW DELHI– India’s semiconductor market is set to nearly double over the next five years, growing from $54.3 billion in 2025 to $103.5 billion by 2030 at a compound annual growth rate (CAGR) of 13.8 percent — well above global benchmarks, according to a new report by Quess Corp.
The report noted that everyday consumer and industrial devices — including smartphones, laptops, and industrial systems — still account for about 70 percent of demand. But with the rapid expansion of electric vehicles (EVs), 5G networks, and hyperscale data centers, the demand for advanced chips is expected to surge. By 2030, EVs are projected to make up nearly one-third of new vehicle sales, while hyperscale capacity is anticipated to grow by more than 75 percent.
The India Semiconductor Mission (ISM), backed by Rs 1.6 lakh crore ($19.2 billion) in projects, is at the center of the government’s push to build domestic capacity, creating nearly 29,000 new jobs. Major investments, such as Micron’s ATMP (assembly, testing, marking, and packaging) facility in Gujarat, are bolstering India’s manufacturing depth, while state-level initiatives in Tamil Nadu, Kerala, and Gujarat are turning regional hubs into competitive semiconductor clusters.
“India’s semiconductor industry is entering a defining decade. As the Government of India fast-tracks approvals for ISM 2.0, which is likely to exceed $10 billion, our report highlights both the scale of opportunity and the challenges in talent readiness,” said Kapil Joshi, CEO of IT Staffing at Quess Corp.
India’s global capability centers (GCCs) are also evolving from back-end support to innovation hubs. Nearly half of new chip programs now include AI accelerators, while one-third of verification teams use machine learning. Engineers in India are working on next-generation technologies such as multi-die integration, AI-assisted place-and-route, TinyML firmware, and AI-driven timing closure — innovations that are shaping AI-first chip design worldwide.
The country already has a semiconductor workforce of more than 250,000 professionals, with 43,000 new jobs created in 2024–25 alone. That talent pool is expected to grow by 120 percent to nearly 400,000 by 2030, making India the world’s second-largest semiconductor talent hub after the United States.
The report emphasized that India’s capabilities span the entire value chain — from design and embedded systems to EDA tool development and ATMP manufacturing — underscoring the country’s emergence as a critical player in the global semiconductor ecosystem. (Source: IANS)
