India's Semiconductor Surge: A USD 150 Billion Market by 2030

India's semiconductor sector is projected to exceed USD 150 billion by 2030, with a USD 21 billion opportunity in AI semiconductors. A report highlights India's design capabilities and substantial workforce, alongside central government incentives. Yet, the lack of advanced foundries and supply chain challenges present hurdles for the country's ambitions.

India's semiconductor market is anticipated to surpass USD 150 billion by 2030, driven by a significant USD 21 billion opportunity in AI semiconductors, according to a comprehensive report from Basic Roots Consulting.

The report underscores the burgeoning landscape with two-thirds of Indian semiconductor startups based in Bengaluru, and the government's strategic efforts to cover half of the manufacturing costs. The country's semiconductor journey is propelled by rising incomes, digital adoption, and an expansive domestic market, projected to reach USD 110 billion by FY30.

Despite the promising growth, India faces challenges due to its reliance on foreign companies for cutting-edge semiconductor fabs, supply chain dependencies, and high capital requirements. The Semicon India programme aims to ameliorate these challenges by providing financial incentives and fostering local development through the India Semiconductor Mission (ISM), a move aimed at cementing India's place in global electronics value chains.

(With inputs from agencies.)