India’s semiconductor chip market is growing rapidly and is expected to hit $100-110 billion by 2030, as the world moves towards greater digitalization and automation.
Being the backbone of modern electronics, semiconductors act as hidden brains that make devices work. The chips store, process, and transfer information, helping devices perform tasks such as calling, storing data, or sensing electrical signals. For example, in the Chandrayaan 3 Mission, the Vikram lander used Indian-made technology and AI to locate a safe landing spot on its own, all by taking complex decisions.
Currently, countries like Taiwan, South Korea, Japan, China, and the United States dominate the semiconductor industry. Taiwan produces more than 60% of the world’s semiconductors, including nearly 90% of the most advanced ones. Meanwhile, India is also emerging as a dominant player in the semiconductor market. According to industry estimates, the size of the Indian semiconductor market was $38 billion in 2023 and $45-50 billion in 2024-2025.
To create an ecosystem to support the industry, the government has launched several initiatives like Electronics Systems Design and Manufacturing (ESDM), or the India Semiconductor Mission and Semicon India programme. As a further push to the mission, the Union Cabinet approved the India Semiconductor Mission in December 2021, with an outlay of ₹76,000 crore. The programme aims to provide financial support for investments in semiconductor fabrication, display manufacturing & chip design to strengthen India’s integration into global electronics value chains. It further seeks to build a strong semiconductor and display ecosystem, positioning India as a global hub for electronics manufacturing and design.
Various skill development programs, training workshops, and certification courses are also being provided for skill enhancement in the semiconductor field. To further strengthen the talent pipeline, the government has initiated a program to train 85,000 engineers in advanced semiconductor and electronics manufacturing
In a recent development, the Union Cabinet approved the establishment of one more semiconductor unit in May 2025. The unit, which is a joint venture of HCL and Foxconn, will manufacture display driver chips for mobile phones, laptops, automobiles, PCs, and a myriad of other devices that have a display. In July 2025, Netrasemi, a startup supported under the government’s chip design scheme, received Venture Capital (VC) investment of ₹107 crore. The company is working on making chips for smart vision, CCTV cameras, and Internet of Things (IoT) applications.
These efforts to meet the rising demand and reduce import dependence, signal India’s shift from a consumer to a key player in the global semiconductor value chain. The country is slowly positioning itself as a trusted hub for semiconductor manufacturing, strengthening its digital economy, national security, and technological self-reliance.
