India's Semiconductor Market to Reach $103B by 2030

• AI, EVs, defence to power chip demand
• Market seen doubling to $103bn by 2030
• Ecosystem gaps remain despite growth

Artificial intelligence infrastructure, electric mobility and defence modernisation are set to power India’s domestic semiconductor expansion over the next decade, according to a report by Endiya Partners. The report noted that with data centre capacity projected to rise to 9 GW by 2030 from about 1.5 GW currently, and the IndiaAI Mission deploying 38,000 GPUs against an initial target of 10,000, chip demand is poised for sharp acceleration.

Titled ‘India Semiconductor Ecosystem: From Policy to Execution’, the report said India’s domestic semiconductor market is expected to nearly double to $103 billion by the end of the decade, up from $52 billion in 2024.

Despite the growth potential, the report flagged structural gaps, including limited indigenous capabilities in analogue and mixed-signal IP, heavy reliance on imports for over 90% of semiconductor equipment and materials, and early-stage development of manufacturing intelligence solutions for yield optimisation. It added that the next 18 months will be critical as the ecosystem shifts from policy announcements to operational readiness.

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Funding activity has also gathered pace, with Indian semiconductor startups raising about $50 million in 2025, compared with $28 million in 2024 and $5 million in 2023. However, investors indicated stronger prospects in horizontal ecosystem infrastructure and supply chain localisation around the OSAT segment rather than capital-intensive fabrication.

“This is a fast-paced growth sector. Broadly, there are three to four types of companies emerging in India. Across IP, fabless products, services and AI-driven EDA (electronic design automation), we see a 4-5x growth opportunity in venture investments over the next two years,” Sateesh Andra, Managing Partner at Endiya Partners.

Manu Iyer, Founder and Managing Partner at Bluehill VC, said AI-related chips, including accelerators, GPUs, hyperscale-grade processors and edge chips will account for a large share of demand in India over the coming years. “Chip design and the fabless model remain the biggest opportunity for India, given our talent strength,” he said. “At the same time, scaling up fabrication capacity becomes strategically important if we want to build long-term resilience and not remain dependent on external supply chains.”