India’s semiconductor industry is poised for a remarkable leap, with revenues projected to double from $54 billion in 2025 to $108 billion by 2030, growing at a 15% compound annual growth rate (CAGR), per a UBS report.

Outpacing global trends, this boom is driven by India’s young talent pool, soaring demand for advanced chips, and proactive government policies, cementing its place as a rising powerhouse in the global semiconductor arena.

The report underscores localization as a cornerstone, forecasting $13 billion from domestic production by 2030. India’s 20% share of global chip designers, combined with the $9.1 billion Semicon India program, is fueling a robust ecosystem.

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High-profile investments, like Tata’s $10.44 billion fabrication plant in Gujarat and Micron’s $2.75 billion assembly facility, highlight the sector’s momentum. Key demand drivers include mobile handsets, IT hardware, and automotive industries, with electronics exports expected to reach $120 billion by 2026.

Currently holding a mere 0.1% of global wafer capacity and heavily reliant on imports, India faces challenges but is strategically positioned for growth. The government’s push for 25% local value addition by 2026 aligns with efforts to reduce dependency on foreign supply chains.

The ongoing US-China tariff war further tilts the scales, as global firms seek alternatives, eyeing India’s stable policies and skilled workforce. By leveraging these tailwinds, India is carving out a pivotal role in the semiconductor landscape, with transformative potential for its economy.

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