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India’s semiconductor market is projected to grow from nearly $64 billion in 2026 to $200 billion by 2035, according to a report by EY and the India Electronics and Semiconductor Association (IESA). The forecast reflects rising demand across electronics, automotive and industrial applications as India expands its chip design and manufacturing capabilities.
Consumer electronics accounts for about 30% of India’s semiconductor market, followed by automotive applications at 16% and industrial uses at 15%. Artificial intelligence, data centres, telecommunications and electric mobility are expected to add to demand in the coming years.
From design strength to commercial production
India’s electronics production increased nearly sixfold between FY15 and FY25, while exports rose elevenfold. The country also has nearly 20% of the world’s chip design engineers, giving it an established talent base as it develops domestic production. IBEF
That manufacturing effort is beginning to reach customers. Of the 12 semiconductor projects approved under the first phase of the Semicon India programme, three had commenced commercial production by August 2026, according to S. Krishnan, Secretary of the Ministry of Electronics and Information Technology. At the inauguration of SEMICON India 2026 on September 17, Prime Minister Narendra Modi said chips produced in Indian plants had begun reaching customers both in India and overseas.
Prime Minister Modi also pointed to progress in training engineers for the sector. He said 70,000 engineering students had been trained so far against a target of 100,000, and urged industry leaders to expand semiconductor research and development in India.
The EY–IESA report, Semicon India 2.0: From Capacity Creation to Ecosystem Leadership, identifies advanced packaging, compound semiconductors, photonics and chip-to-system integration as areas of opportunity. It recommends integrated manufacturing clusters and specialised training to build on India’s design strengths.
At SEMICON India 2026, Prime Minister Modi said India was preparing to meet global demand for trusted semiconductor manufacturing. He called on young researchers and industry leaders to develop advanced technologies in the country, linking India’s growing chip production with its ambitions in research and innovation.
