India’s semiconductor industry is poised for exponential growth, with the market projected to expand from $34.3 billion in 2023 to $100.2 billion by 2032, according to a report by Union Bank of India. This surge reflects the country’s growing role in the global semiconductor ecosystem, driven by policy support, strong domestic demand, and a robust engineering talent base.
State-Level Push and Investments
Several Indian states are stepping up with dedicated policies to attract semiconductor investments. Gujarat, Odisha, Tamil Nadu, and Uttar Pradesh have already announced specialized semiconductor policies, while Karnataka, Maharashtra, and Telangana continue to emerge as key destinations for large-scale investments. These states are leveraging incentives and infrastructure to attract global chipmakers and ecosystem partners.
India’s Talent Advantage
A major driver of India’s semiconductor journey is its vast talent pool. Indian engineers make up nearly 20% of the world’s semiconductor design workforce. More than 100,000 VLSI engineers are currently employed in global semiconductor companies and India’s design services. Despite a temporary moderation in job openings at Global Capability Centres, demand for skills in very-large-scale integration (VLSI), embedded systems, and RF/analogue design remains robust, according to Careernet data reported by The Economic Times.
Global Firms and Ecosystem Development
Global semiconductor companies are increasingly looking to partner with Indian firms to establish manufacturing plants in India, reports The Times of India. The drivers include India’s large domestic market, skilled workforce, and state-level incentives.
At the same time, Indian chemical companies are expanding into materials and solutions critical for chip fabrication, building an ecosystem for end-to-end semiconductor manufacturing. According to ANI and Bastion Research, this will be crucial for reducing import dependence and strengthening India’s position in the global supply chain.
The Road Ahead
With strong policy support, a growing local market, and a competitive talent base, India is positioning itself as a semiconductor powerhouse of the future. The coming decade will be critical as the country balances design expertise with large-scale manufacturing to become a global hub for chips.