India's semiconductor industry likely to double revenue to $108 bn by 2030: Report

IANS April 13, 2025 276 views

India's semiconductor industry is set for remarkable expansion, projected to reach $108 billion by 2030. The UBS report highlights the country's strategic advantages in chip design and potential global supply chain diversification. With only 0.1% of current global wafer capacity, India presents significant growth opportunities. The favorable demographics, rising electronics demand, and supportive government policies are key drivers of this projected semiconductor boom.

"India's unique advantage lies in having 20% of global chip designers" - UBS Report
India's semiconductor industry likely to double revenue to $108 bn by 2030: Report
New Delhi, April 13: The Indian semiconductor industry's revenues are likely to double from $54 billion to $108 billion between 2025 to 2030, according to a report by financial services firm UBS.

Key Points

1

India expected to double semiconductor revenues by 2030

2

US-China trade tensions boost India's tech potential

3

Government policies driving semiconductor ecosystem growth

The report expects India to gain amid the US-China tariff war that will put the communist giant at a disadvantage and see India emerging as a stronger alternative for global giants looking to set up supply chains.

The report sees strong growth ahead for the market, including a localisation opportunity, which is expected to generate $13 billion in revenues in 2030.

UBS said 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.

India accounts for only 0.1 per cent of global wafer capacity, around 1 per cent of annual equipment spending, and a 6.5 per cent semiconductor end-demand share, the report states.

According to the report, 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.

A few companies have already embarked on their "China plus one" strategy by diversifying their final assembly locations beyond China, the report points out.

India's tech advantage lies mostly in its vast talent pool in the software and services industry, whereas mainland China's dominance is in tech manufacturing.

In semiconductors, too, India has a unique advantage, with around 20 per cent of global chip designers working in the country for multinational corporations, the report points out.

Despite these uncertainties, the US and mainland China are the top end-markets. India, at 6.5 per cent, is a solid end market for global semiconductors, with $54 billion in revenues in 2025, the report added.

Reader Comments

R
Rajesh K.
This is fantastic news for India's tech sector! 🎉 With our strong talent pool and government support, we're finally getting the recognition we deserve in hardware manufacturing. Hope to see more semiconductor fabs being set up soon.
P
Priya M.
While the growth projections are impressive, I wonder if we're putting too much emphasis on foreign companies relocating here. Shouldn't we focus more on building domestic semiconductor champions rather than just being an alternative to China?
A
Amit S.
The 20% global chip designers stat is eye-opening! We've always been strong in software, but now hardware is catching up. This could create so many high-quality jobs for engineers.
S
Sunita P.
Exciting times ahead! But we need to ensure this growth benefits all levels of the workforce, not just the highly skilled. More vocational training programs in semiconductor manufacturing would be great.
V
Vikram J.
The China+1 strategy is working in our favor! Though we're starting from a small base (0.1% wafer capacity), the growth potential is massive. Hope the government continues its supportive policies.
N
Neha R.
As someone working in this industry, I can confirm the momentum is real. But we need better infrastructure - reliable power and water supply are crucial for semiconductor plants. That's where we still lag behind China.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Your email won't be published

Tags:
Semiconductors India Tech UBS Report Supply Chain Chip Manufacturing Technology Trends
You May Like!