India is gearing up for a significant leap in its semiconductor sector. A recent report by global financial services firm UBS forecasts that India’s semiconductor industry revenue will likely double from $54 billion in 2025 to $108 billion by 2030.
This projected growth, representing a compound annual growth rate (CAGR) of 15%, is expected to outpace the global semiconductor market, driven by a mix of demographic strength, policy reforms, and rising domestic demand.
According to UBS, the ongoing US-China tariff war has opened up a strategic window for India. As global technology giants seek alternatives to reduce dependence on China, India is being viewed as a favorable "China Plus One" destination.
“Major tech companies are evaluating the relocation of their supply chains amid the ongoing tariff uncertainties triggered by the Donald Trump administration in the US,” the report said.
Several companies have already started diversifying their final assembly locations beyond China, which gives India a significant edge.
UBS estimates that a localization drive in India’s semiconductor ecosystem could yield an additional $13 billion in revenues by 2030. With a large domestic market for electronics and government-backed initiatives like the PLI (Production Linked Incentive) scheme, India is pushing to strengthen its semiconductor manufacturing capabilities.
“This 15 per cent compound annual growth rate (CAGR) estimate is faster than our forecast for the global semiconductor end market thanks to India’s favourable demographics fuelling strong electronics demand (and in turn semiconductors), rising enterprise adoption of advanced semiconductors, and favourable government policies,” UBS noted.
Despite promising prospects, India still has a long way to go in catching up with the semiconductor manufacturing giants.
Global wafer capacity share: Just 0.1%
Annual semiconductor equipment spending: About 1%
Global end-demand share: 6.5%
A unique strength lies in India’s software and chip design ecosystem. According to the report, nearly 20% of global chip designers are based in India, working for multinational corporations.
“In semiconductors, too, India has a unique advantage, with around 20 per cent of global chip designers working in the country for multinational corporations,” it stated.
While mainland China remains dominant in tech manufacturing, India’s edge lies in its abundant tech talent pool, especially in the embedded systems and VLSI design space.
While the United States and China remain the biggest end-markets for semiconductors, India's share is 6.5%, which translates to $54 billion in 2025. As the country scales its manufacturing and design capabilities, this figure is expected to grow steadily.
India is rapidly emerging as a key player in the global semiconductor value chain, driven by a confluence of enabling factors. With proactive government policies such as the Semicon India programme, production-linked incentives (PLIs), and strategic partnerships with global technology leaders, the country is laying a strong foundation for chip manufacturing and design.
Geopolitical shifts, including efforts by global players to diversify their supply chains beyond traditional hubs like Taiwan and China, have further opened up opportunities for India to become a trusted partner. Additionally, India boasts a robust ecosystem of engineers and a thriving chip design talent pool that already contributes significantly to global semiconductor firms.
By aligning policy, infrastructure, and innovation, India could transform itself into a major semiconductor hub—not only catering to its domestic needs in sectors like electronics, telecom, and defence but also serving as a vital node in the global supply chain for years to come.