🧔♂️ A friendly human may check it before it goes live. More news here
India chip market to hit $103b as AI, EV drive demand: reports
India’s domestic semiconductor market could nearly double to $103 billion by 2030 from $52 billion in 2024, driven by AI, EVs, and defense, Endiya Partners said.
The report projects data center capacity rising to about 9 GW by 2030 from about 1.5 GW now and says the IndiaAI Mission has deployed 38,000 graphics processing units (GPUs).
It warned of over 90% reliance on imported equipment and materials.
The next 18 months are key as the ecosystem transitions from policy announcements to operational readiness and noted Indian semiconductor startups raised about $50 million in 2025.
Sateesh Andra, of Endiya Partners, told ET that venture opportunities lie in horizontal ecosystem infrastructure, fabless design, services, and AI-driven EDA, rather than capital-intensive chip fabrication.
Manu Iyer, founder of Bluehill VC, said AI accelerators, GPUs, hyperscale-grade processors, and edge chips will drive demand, and that chip design and the fabless model remain India’s biggest opportunity.
🔗 Source: The Economic Times
🧠 Food for thought
Implications, context, and why it matters.
Billions in investment are already building India’s semiconductor foundation
- Government incentives plus active manufacturing projects are shaping India’s semiconductor ecosystem. The Endiya Partners report expects the next 18 months to move the sector from policy talk to operating sites.
- Micron’s ATMP (assembly, testing, marking and packaging) facility in Sanand, Gujarat is expected to start by late 2025 or early 2026. A CG Power pilot OSAT (outsourced semiconductor assembly and test) line in Sanand opened in August 2025, with commercial production expected in 2026 1.
- Tata Electronics is developing a semiconductor fabrication facility in Dholera, Gujarat with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC). Expected nodes are around 28 nm and above 2.
India’s chip strategy underpins its AI and EV ambitions
- Local chip manufacturing links to demand for AI infrastructure, electric vehicles (EVs), plus defence-related electronics. The Endiya Partners report expects India’s domestic semiconductor market to reach $103 billion by 2030, up from $52 billion in 2024.
- The report expects data centre capacity to rise to about 9 gigawatts (GW) by 2030 from about 1.5 GW now. It says the IndiaAI Mission has deployed 38,000 graphics processing units (GPUs) versus a 10,000 target.
- New capacity includes Tata Electronics’ Dholera fab for chips at around 28 nm and above, aimed at automotive, AI, plus 5G/compute. Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) in Assam is an OSAT/ATMP project targeting chips for automotive, EV, plus mobile and consumer segments 1.
- The Endiya Partners report flags constraints that could slow scaling. These include limited indigenous analogue and mixed-signal intellectual property (IP), more than 90% reliance on imported equipment and materials, plus early-stage manufacturing-intelligence tools for yield optimisation. It also cites shortages in product managers, applications engineers, plus sales specialists. Limited experience running large semiconductor fabs or OSATs could also slow growth.
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.