India Semiconductor Manufacturing Market to Reach USD 132.11 Billion by 2033, Fueled by PLI Scheme and Domestic Electronics Boom | DataM Intelligence ​

The India semiconductor manufacturing market reached US$ 49.41 billion in 2023, rising to US$ 54.14 billion in 2024, and is expected to hit US$ 132.11 billion by 2033, growing at a CAGR of 10.42% during 2025-2033. This explosive growth is driven by surging domestic demand for electronics, government initiatives like the Production-Linked Incentive (PLI) scheme, and adoption of 5G, IoT, EVs, and data centers.​

India's semiconductor manufacturing sector is emerging as a strategic priority under the country's broader electronics and digital industrialization agenda. The government is actively promoting domestic chip fabrication and assembly to reduce import dependence and strengthen supply chain resilience. Investments are focused on semiconductor fabs, OSAT/ATMP facilities, and ecosystem development. Policy incentives, global partnerships, and rising domestic demand are accelerating progress. India aims to position itself as a reliable hub in the global semiconductor value chain.

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Recent Developments:

✅ In July 2025, the Government of India accelerated progress under the India Semiconductor Mission (ISM) by advancing infrastructure development for semiconductor fabrication clusters. The initiative aims to strengthen domestic chip manufacturing capabilities and reduce dependence on imports across strategic sectors.

✅ In June 2025, a leading global semiconductor company partnered with an Indian conglomerate to expand advanced semiconductor assembly and testing (OSAT/ATMP) facilities. The project focuses on chips used in automotive electronics, consumer devices, and industrial applications.

✅ In May 2025, multiple Indian states announced incentives to attract semiconductor manufacturing investments, including land allocation, power subsidies, and talent development programs. These measures are designed to support fab, packaging, and semiconductor supply chain ecosystems across the country.

​Market Overview and Segment Analysis:

India's semiconductor manufacturing encompasses fabrication (fabs), assembly-testing-marking-packaging (ATMP/OSAT), and design ecosystems, addressing chips for consumer electronics, automotive, industrial, and telecom. With 20% of global chip design engineers in India, the focus is shifting from import dependence (95%) to self-reliance via local production.​

Segments:

Device Type: Integrated circuits (86.4% share, logic/memory), discrete, optoelectronics, sensors. ICs lead due to smartphones/AI.​

Process Node: Mature (>28nm, dominant), advanced (7-14nm, growing for EVs/5G).​

End Users: Consumer electronics (70% demand), automotive, telecom, data centers, industrial.​

Value Chain: Design (20% global engineers), ATMP (Micron/Tata), fabs (emerging).​

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Market Drivers - India Semiconductor Manufacturing:

Strong Government Policy Support
Government-led initiatives, incentive schemes, and long-term policy frameworks are driving investments in semiconductor fabrication, testing, and packaging infrastructure.

Rising Electronics and Digital Consumption
Growing demand for smartphones, consumer electronics, automotive electronics, and industrial automation is increasing the need for locally manufactured semiconductors.

Supply Chain Diversification Strategy
Global companies are seeking to reduce over-reliance on traditional manufacturing hubs, creating opportunities for India as an alternative semiconductor production base.

Growth of Automotive and EV Industry
The expansion of electric vehicles, advanced driver-assistance systems, and connected mobility is boosting demand for automotive-grade semiconductors.

Skilled Engineering Talent Base
India's large pool of semiconductor design and engineering professionals supports the development of manufacturing, testing, and R&D capabilities.

Market Opportunities - India Semiconductor Manufacturing:

Establishment of Semiconductor Fabs and OSAT Units
Opportunities are expanding in wafer fabrication, assembly, testing, and packaging facilities to support both domestic and export markets.

Global Technology Partnerships
Collaborations with international semiconductor leaders enable technology transfer, capacity building, and faster ecosystem development.

Focus on Specialty and Mature Nodes
Manufacturing of power semiconductors, analog chips, sensors, and mature-node logic devices offers strong near-term commercial potential.

Electronics Manufacturing Ecosystem Growth
Expansion of electronics manufacturing services, PCB production, and component supply chains enhances demand for locally produced chips.

Long-Term Strategic Importance
Semiconductors are critical to national security, digital infrastructure, and industrial growth, positioning India for sustained long-term investment and policy support.

​Regional Market Dynamics:

India's market is pan-India but concentrated in Gujarat (Micron ATMP), Assam (Tata), Karnataka (design), with expansions in Tamil Nadu, Uttar Pradesh. South/West India lead due to electronics hubs; North/East emerging via incentives.​

Competitive Landscape:

Players: Micron Technology, Inc., Vedanta Resources Limited, Sahasra, MosChip Technologies, Applied Materials, Inc.

Strategies:​

Fabs/ATMP under PLI (INR 1.5T investments).​
Design centers (20% global talent).​
Partnerships (US firms like Micron/Applied).​
Milestones: 15,700+ jobs, $900M+ SPECS projects.​

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​Future Outlook

India's market will surge to $132.11B by 2033, capturing 10% global demand via PLI, design prowess, and supply chain diversification. Advanced nodes, EVs, AI will drive self-reliance, positioning India as a semiconductor powerhouse.​

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