India’s semiconductor industry has the potential to expand to $40 billion by 2030, provided the country strengthens its supply chain ecosystem, including chemicals and gases essential for chip production, according to the India Electronics and Semiconductor Association (IESA).
Speaking at the IESA Vision Summit, IESA President Ashok Chandak emphasized the need for India to draw lessons from leading global semiconductor hubs, highlighting the intricate nature of the industry.
“Chip manufacturing involves processes across at least ten countries. It is a highly complex industry. To ensure successful semiconductor production in India, the supply chain must be developed, covering gases, chemicals, and materials. Most of these components should be locally available to support upcoming semiconductor plants,” Chandak stated.
New Report Outlines India’s Semiconductor Potential
IESA has been actively mapping the groundwork required for a robust semiconductor ecosystem. The association had previously published a 2022 report on the foundational steps needed and has now released a detailed report outlining India’s manufacturing potential in the sector.
According to Chandak, the global semiconductor supply chain market is projected to grow to $420 billion by 2030, and if India captures even 10% of this market, it could unlock a $40 billion opportunity. This expansion could be driven by global semiconductor firms shifting operations to India, both for domestic manufacturing and exports.
However, under the current ecosystem, India’s semiconductor industry is estimated to reach only $10 billion by 2030, highlighting the need for greater policy support, infrastructure, and workforce development.
Massive Workforce Demand in Semiconductor Industry
The IESA report also underscores the significant workforce requirement for the semiconductor value chain in India. By 2026-2027, the industry will need approximately 1.5 million skilled workers and 5 million semiskilled workers.
The demand will be particularly high for roles such as:
•Processing and Equipment Engineers
•IC Testing Engineers
•Capacity Planning Managers
•Chemical and Materials Engineers
Additionally, job opportunities are expected to surge in design, manufacturing, training, supply chain management, packaging, testing, and logistics over the next two to five years.
Global Interest in India’s Semiconductor Industry Surging
Chandak noted that global stakeholders are increasingly looking at India as a semiconductor hub. This growing interest was evident at the 19th IESA Vision Summit, which saw participation from more than 2,400 attendees, including over 250 international leaders.
Over 30 memorandums of understanding (MoUs) were signed during the summit, including key agreements between Tata Electronics, PSMC, and Himax.
“Semiconductors are a highly specialized industry but also a crucial pillar of the digital revolution. The strong participation at the summit, with over 1,750 attendees in the inaugural session alone, reflects the keen interest of global firms in India,” Chandak added.
With increasing investments, government initiatives, and a focus on supply chain development, India is positioning itself as a potential global semiconductor powerhouse.
