India’s semiconductor market is expected to grow nearly three times to $120 billion by 2030 and reach $300 billion by 2035. The main reasons for this are the rapidly increasing use of Artificial Intelligence (AI), development in the automobile sector and growth of data centers.
Deloitte’s report titled ‘Technology, Media, and Telecommunications Predictions 2026’ states that India is now ready for a big change. It is expected that by the end of 2035, domestic production will increase to meet more than 60 percent of domestic needs. India’s semiconductor market is estimated to be $ 45-50 billion in FY2024-25 and is growing at the rate of 20 percent in the last three years. Due to AI, automobile, data center and electronics manufacturing, this market can reach $ 120 billion by 2030 and $ 300 billion by 2035.
The report said that by 2035, with the help of ISM and state governments, 4-5 silicon fabs, 8-10 compound fabs, 1-2 display fabs and 20-25 assembly and testing units are expected to be built in India. By 2035, 60 percent of the country’s total demand will be produced in the country itself. By 2035, sectors such as mobile phones, automobiles, computers and data centers are expected to account for more than 70 percent of the total semiconductor demand.
With the help of the government’s India Semiconductor Mission (ISM), investment of more than $ 19 billion has already come into this sector through 10 approved projects. These include eight OSAT units, one compound fab and one semiconductor fab. Deloitte said that 18-20 more projects with a total investment of $20-25 billion are currently in different stages.
Will the investment be this much?
An additional investment of $50 billion is expected in India’s semiconductor industry in the next five years. Also, an additional investment of 75-80 billion dollars is expected between 2030 and 2035, which will further strengthen the entire system. With the growth of semiconductor sector, jobs will also be created on a large scale. It is estimated that by 2035, about 20 lakh jobs can be created in this industry. Of these, about 30 percent jobs will be in manufacturing, 30 percent in design services and the remaining 40 percent in other related works.
However, Deloitte has warned that maintaining this pace will depend on the plans being implemented properly. The report suggests that policies should be made into a strong and long-term national plan rather than just a limited-term plan, so that funding remains available continuously. It also emphasizes the need for better coordination between the central and state governments, so that facilities like land, electricity, water and infrastructure can be easily available and a single-window system can be implemented.
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