India's Semiconductor Industry on a Rapid Growth Trajectory

According to a UBS report, India's semiconductor industry is expected to see its end-demand revenues double from $54 billion in 2025 to an impressive $108 billion by 2030. This growth is projected at a 15% compound annual growth rate (CAGR), outpacing the global average.

Key Drivers Behind the Growth

The surge is attributed to India's young population, increasing adoption of advanced chips by businesses, and supportive government policies. Localisation efforts are also expected to contribute significantly, adding around $13 billion in revenues by 2030.

India's Current Position and Future Potential

Despite holding just 0.1% of global wafer capacity and accounting for 6.5% of global semiconductor demand, India is emerging as a critical end market. The country's strength in software and services, along with nearly 20% of the world's chip designers working for global firms in India, underscores its growing importance in the semiconductor ecosystem.

Global Supply Chain Shifts

Multinational companies are reevaluating their supply chains amidst tariff uncertainties, with some relocating final assembly operations from China under a "China plus one" strategy. While China dominates tech manufacturing, India's talent pool positions it uniquely in the semiconductor design domain.