India’s Semiconductor Industry: A ₹3.47 Lakh Crore Opportunity by 2030

India’s semiconductor industry is poised for substantial growth, with projections indicating a market size of ₹3,47,800 crore (US$ 40 billion) by 2030. This expansion is primarily driven by developments in the supply chain ecosystem, particularly the availability of chemicals and gases essential for chip manufacturing.

According to the India Electronics and Semiconductor Association (IESA), the global semiconductor supply chain market is expected to reach ₹36,51,700 crore (US$ 420 billion) by 2030. India aims to capture a 10% share of this lucrative sector, marking a significant leap in the country’s technological ambitions.

Supply Chain and Ecosystem Development: A Key Focus

Speaking at the IESA Vision Summit, IESA President, Mr Ashok Chandak, underscored the importance of learning from established global semiconductor hubs. Given the complexity of semiconductor manufacturing—often involving over ten countries in the value chain—India needs to establish a robust local supply chain.

Key components such as gases, chemicals, and raw materials play a crucial role in semiconductor fabrication. To become a competitive player, India must ensure adequate local production and seamless supply of these critical materials.

A Growing Demand for Skilled Workforce

The semiconductor sector’s expansion will also require a significant skilled workforce. The IESA report forecasts that India will need:

• 1.50 million skilled workers
• 5 million semi-skilled workers

This workforce demand is expected to materialise by 2026-27, highlighting the need for substantial training and education initiatives in semiconductor-related disciplines.

Strategic Partnerships and Industry Collaboration

To accelerate India’s semiconductor aspirations, over 30 Memoranda of Understanding (MoUs) were signed at the IESA Vision Summit. Notably, Tata Electronics entered into agreements with:

• Powerchip Semiconductor Manufacturing Corporation (PSMC)
• Himax Technologies

These collaborations aim to strengthen India’s semiconductor manufacturing ecosystem, attracting global expertise and investment.

Conclusion

India’s semiconductor industry is on the path to becoming a significant global player, with supply chain development, workforce training, and strategic partnerships serving as crucial pillars of growth. While challenges remain, India’s commitment to expanding its semiconductor capabilities signals a promising future for the industry.

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