A new analysis report presented by EY-IESA estimates that India’s semiconductor market will grow more than threefold by 2035. It states that the market will increase from nearly $64 billion in 2026 to $200 billion by 2035 covering areas such as artificial intelligence, data centres, telecommunications, electric vehicles, and advanced semiconductor manufacturing.
The findings of the report point to the increase in demand for semiconductors in India’s consumer electronics and industrial sectors. Consumer electronics is the largest demand segment accounting for a 30% market share, followed by Automotive (16%) and Industrial (15%).
Semiconductor imports by India have also increased in recent years. According to the report, semiconductor imports have increased fivefold, from $5.7 billion in FY2017 to $30.3 billion in FY2025, representing a compound annual growth rate of 23%. The report also states that increased domestic demand presents a good opportunity to expand India’s manufacturing, research and development, and supply chain capabilities for semiconductors.
Another key strength is India’s ability in chip design. The country has nearly 20% of the global chip design engineers which is a positive point for talent development and there is a huge opportunity for expand semiconductor manufacturing, chip design and commercialisation.
According to the report, key technologies in the semiconductor industry—including advanced packaging, compound semiconductors, photonics and chip-to-system integration—should be the focus for India’s potential growth. It also calls for stronger semiconductor manufacturing clusters, improved infrastructure, specialised talent and closer industry-academic collaboration.
The Indian semiconductor market, projected $200 billion by 2035, indicates the scale of the opportunity for India as it seeks to expanding its footprints across the semiconductor supply chain.
