India's semicon market to reach USD 300 bn by 2035: Report

India's semiconductor market is projected to nearly triple to USD 120 billion by 2030 and reach USD 300 billion by 2035, driven by the exponential adoption of artificial intelligence (AI), automotive growth, and data centre expansion, according to a report by Deloitte. India, which currently imports over 90 per cent of its semiconductor needs, is poised for a structural shift as local production is expected to meet more than 60 per cent of domestic demand by the end of 2035, the report titled 'Technology, Media, and Telecommunications Predictions 2026' said.
"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. Deloitte said government support under the India Semiconductor Mission ISM helped draw over USD 19 billion. That investment covered 10 approved manufacturing projects. Deloitte listed eight OSAT facilities among the approvals. It also included one compound fab and one semiconductor fab.
Deloitte added that more proposals were moving through the approval process. The report said another 18-20 proposals were in the pipeline. Deloitte put the combined value at USD 20-25 billion. The report said these proposals were at different stages across locations and project types. Looking ahead, Deloitte predicted large capital inflows into the semiconductor industry. The report forecast an additional USD 50 billion over the next five years. Deloitte also expected USD 75-80 billion more between 2030 and 2035. The report said this later funding would support wider ecosystem expansion.
Deloitte said India could host multiple manufacturing units by 2035. The report projected 4–5 silicon fabs and 8–10 compound fabs. It also expected 1–2 display fabs. Deloitte added that India could have 20–25 OSAT facilities, backed by ISM and state incentives.The report said the growing ecosystem would create large employment opportunities. Deloitte forecast about 2 million jobs by 2035. The report expected 30 per cent in manufacturing operations. Another 30 per cent was linked to design services. The remaining 40 per cent was expected across the wider value chain.