India's Chip Boom! Centre Says Market To Smash $100 Billion

India’s semiconductor market is set to soar past $100 billion by 2030, fueled by explosive growth in electronics manufacturing and hefty government backing, the Centre announced Thursday. With chip demand surging across automotive, telecom, and consumer sectors, India is fast-tracking its rise as a global electronics powerhouse.

The Ministry of Electronics and Information Technology (MeitY) pegs the current market at $45-50 billion, projecting a doubling to $100-110 billion in five years, driven by a 13% compound annual growth rate (CAGR). Secretary S Krishnan noted that even at peak domestic production, India will meet only a fraction of this demand, underscoring the need for robust imports and local fabrication.

The $9.1 billion ‘Semicon India’ programme is turbocharging the effort, with over Rs 1.52 lakh crore ($18 billion) in investments already locked in, including five new plants like the Tata-Powerchip fab in Gujarat, slated for 2027.

Mobile handsets, IT, and telecom—accounting for over 75% of chip revenues—lead the charge, boosted by 5G rollouts, BharatNet, and the shift to smartphones. Union Minister Ashwini Vaishnaw hailed India’s trajectory toward becoming a semiconductor hub, with global giants like Micron and AMD betting big.

Yet, challenges loom: 60% of demand by 2032 will be for advanced sub-10 nm chips, a leap from today’s 25%, per industry forecasts. As India eyes 10% of global chip consumption, the Centre’s PLI schemes and design incentives aim to bridge the gap, blending ambition with reality.