Kolkata: The Indian semiconductor market is poised for a structural shift with a fast rise in the production of semiconductor fabrication, a report by
Deloitte has said. The market is going to expand so fast that it is going to grow by more than 7 times by 2035 and reach $300 billion, the MNC consultancy major has said. By 2030, the market is going to rise about three times and reach $120 billion.
The changing landscape of the Indian semiconductor market has been captured in a report titled ‘Technology, Media, and Telecommunications Predictions 2026’. The report has identified the tailwinds as very rapid adoption of artificial intelligence (AI), automotive growth and data centre boom. As a result, India will be importing far less semiconductors than it does at present. While India now imports more than 90% of the semiconductors every year, it will manufacture 60% of the demand from domestic production.
Demand from phones, automotive, computing
“India’s semiconductor market is estimated at USD 45–50 billion in FY2024–25 and has been growing at a CAGR of 20 per cent over the past three years. The market is predicted to reach USD 120 billion by 2030 and USD 300 billion by 2035, driven by AI, automotives, data centres, and electronics manufacturing…. By 2035, India is expected to host 4–5 silicon fabs, 8–10 compound fabs, 1–2 display fabs and 20–25 OSAT facilities, supported by ISM and state-level incentives,” Deloitte stated in its report.
It has also projected that the mobile phones, automotive and computing will consume more than 70% of the total semiconductor demand in the country. The government has identified the emerging sector as one of the drivers of the economy and also to spread the potential of Indian manufacturing in the world. Accordingly, it has also adopted the India Semiconductor Mission, which has already attracted more than $19 billion in investments in 10 projects. Of these 10, eight are Outsourced Semiconductor Assembly and Test or OSAT units while one is a compound fabrication and another one a semiconductor fabrication.
About 20 proposals waiting for approval
Deloitte has pointed out that investments have started to flow in. As many as 18-20 projects proposals with a cumulative investment of $20-25 billion are in the pipeline, it mentioned. “Over the next five years, the semiconductor industry in India is predicted to attract an additional USD 50 billion in capital investment,” it stated. Apart from these, between 2030 and 2035, investment of $75-80 billion investment can flow in this sector.
Employment opportunity
The semiconductor sector can employ a lot of people, which is an important collateral benefit for a country like India. Deloitte predicts that the sector can generate about 20 lakh employment opportunities by 2035. The consultancy firm has also provided a breakdown — 30% in the manufacturing operations, 30% in design services of semiconductor materials and 40% in various stages of the value chain.
To prepare for this ecosystem to flower, a lot of HR preparation will be needed. About four to five lakh people have to be trained annually and relevant courses have to designed for fab, ATMP labs and training facilities.
Incentive scheme a priority
Deloitee has mentioned that a conducive policy environment have to be created and a time-bound incentive scheme must be implemented to ensure funding certainty beyond annual budget cycles. India should also ideally have a single-window framework for granting land, utilities and infrastructure delivery for semiconductor projects. This is needed for quickly taking investments from the proposal table to the commissioning stage. Incidentally, in the Union Budget 2026 the government laid a lot of emphasis on semiconductors, artificial intelligence, electronics manufacturing, data centres and IT services.
