India’s semiconductor market is expected to grow rapidly and reach around $103 billion by 2030, driven by rising demand from artificial intelligence (AI), electric vehicles (EVs), and defence technologies. The expansion is supported by increasing investments in semiconductor manufacturing, data-centre infrastructure, and government initiatives such as the India Semiconductor Mission.
Rapid growth in AI infrastructure and data centres is expected to significantly increase chip demand, with India’s data-centre capacity projected to rise from about 1.5 GW today to nearly 9 GW by 2030. The adoption of GPUs and high-performance chips for AI workloads will further accelerate semiconductor consumption.
The semiconductor sector is also being boosted by automotive electrification, defence modernization, and electronics manufacturing, positioning India as a key emerging hub in the global semiconductor ecosystem.
Why This Matters
• Positions India as a major semiconductor demand and manufacturing hub
• Supports growth in AI, EVs, data centres, and defence technologies
• Strengthens electronics manufacturing and technology supply chains
• Drives investment, innovation, and high-skilled job creation