NEWS – India’s semiconductor sector is projected to reach $103.5 billion by 2030, nearly doubling from $54.3 billion in 2025.

HIGHLIGHTS

• Growth rate: 13.8% CAGR, faster than global benchmarks.
• Transition from consumption-heavy market (devices like smartphones, laptops) to a global capability hub in design, R&D, and manufacturing enablement.

Demand Drivers

• Traditional base (70%): Mobile handsets, IT/PCs, industrial systems.
• New growth vectors:
  • Electric Vehicles (EVs): Targeted to make up nearly 1/3rd of new vehicles by 2030.
  • 5G infrastructure rollout.
  • Expansion of data centres: Hyperscale capacity to grow by 75% by 2030.

India Semiconductor Mission (ISM)

• Investment of ₹1.6 lakh crore across projects.
• Creation of 29,000+ new jobs.
• Strengthening domestic capability in the full value chain: design, embedded systems, EDA tools, ATMP (Assembly, Testing, Marking & Packaging).

Workforce Expansion

• Current talent pool: 250,000 professionals, with 43,000 new postings in FY 2024-25.
• Projected growth: 400,000 professionals by 2030 (120% increase).
• India set to become the second-largest semiconductor talent hub globally, after the US.
• 80% workforce has <10 years’ experience → strong entry-level base but leadership talent gap at senior levels.

Geographic Spread

• Bengaluru & Hyderabad: Account for over 80% of semiconductor GCC (Global Capability Centres) workforce.
• Over 55 GCCs employ 60,000+ engineers; evolving towards AI-driven system design and verification.
• Emerging Tier-2 hubs: Ahmedabad, Mohali, Thiruvananthapuram → aligned with EV and industrial clusters, supported by ESDM parks and policy incentives.

Outlook

• EVs, 5G, and data centres will drive the next semiconductor boom.
• Diversification into Tier-2 cities to provide cost advantages, policy support, and sustainable talent supply.