New Delhi [India], September 20 (ANI): India’s semiconductor market is projected to grow more than threefold from nearly USD 64 billion in 2026 to USD 200 billion by 2035. The growth creates an opportunity to convert domestic demand into manufacturing, innovation, and supply-chain resilience, according to an EY–IESA report titled 'Semicon India 2.0: From capacity creation to ecosystem leadership'.
Consumer electronics accounts for 30 per cent of India’s semiconductor market, followed by the automotive sector at 16 per cent and industrial applications at 15 per cent. Emerging segments such as artificial intelligence, data centres, telecommunications, electric mobility, and advanced manufacturing generate fresh avenues of demand.
Semiconductor imports expanded more than fivefold from USD 5.7 billion in FY17 to USD 30.3 billion in FY25, clocking a compound annual growth rate of 23 per cent. The report noted that this trend underlines the need to translate rising domestic requirements into local fabrication. India also houses nearly 20 per cent of global chip design engineers, providing a talent base for domestic design, manufacturing, and commercialisation.
Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA), said, "India now has a unique opportunity to combine its strengths in engineering talent, electronics demand, design capabilities and emerging manufacturing capacity with resilient global supply-chain partnerships. The next phase will be defined by execution, innovation, technology commercialisation, indigenous IP, specialised talent and ecosystem depth. India has moved beyond semiconductor ambition. The opportunity now is to build an ecosystem that the world trusts, India owns and the next generation can scale."
The broader electronics manufacturing sector expanded alongside chip demand. Total electronics production increased sixfold from Rs 1.9 lakh crore in FY15 to Rs 11.3 lakh crore in FY25, with domestic manufacturing growing sevenfold and exports rising elevenfold over the decade.
Aisha Ali Hussaini, Partner and Semiconductor Tax Leader at EY India, said, "India has a powerful combination of market scale, engineering talent and policy momentum. Its rapidly expanding electronics ecosystem adds to this opportunity... The priority now is to translate this scale into deeper semiconductor value addition by building a connected, innovation-led ecosystem that attracts sustained investment and creates more value domestically."
"Over the coming decade, a predictable fiscal and regulatory environment, stronger alignment between central and state policies, and focused support for emerging technologies can help improve project viability and accelerate commercialisation. If industry, government and academia work together with a long-term view, India can move beyond being a design powerhouse to play a much larger role across manufacturing, advanced packaging and the wider global semiconductor value chain," Hussaini added.
The EY–IESA report highlighted advanced packaging, compound semiconductors, photonics, and chip-to-system integration as high-potential opportunity segments. It recommended aligning state-level policies with Semicon 2.0, establishing integrated manufacturing clusters with shared infrastructure, and rolling out specialised talent-certification programmes across fabrication, design, and packaging lines. (ANI)
India semiconductor market projected to touch USD 200 billion by 2035: EY-IESA Report
