India’s semiconductor demand to see 15% CAGR, hit Rs. 9,29,880 crore (US$ 108 billion) by 2030: UBS report

India's semiconductor end-demand revenues are anticipated to double from 2025 to 2030, increasing from Rs. 4,64,940 crore (US$ 54 billion) to Rs. 9,29,880 crore (US$ 108 billion), according to a report by financial services firm UBS. The report forecasts that the revenue from localisation opportunities will remain around Rs. 1,11,930 crore (US$ 13 billion) in 2030. UBS expects India's semiconductor end market to grow by 15% compound annual growth rate (CAGR) from 2025 to 2030, with annual revenues reaching Rs. 9,29,880 crore (US$ 108 billion) in 2030. This 15% CAGR estimate is higher than the global semiconductor end market forecast, driven by India's favourable demographics, strong electronics demand, rising enterprise adoption of advanced semiconductors, and supportive government policies. However, India currently accounts for only 0.1% of global wafer capacity, around 1% of annual equipment spending, and 6.5% of semiconductor end-demand share.

The report also notes that major tech companies are considering relocating their supply chains due to ongoing tariff uncertainties. Some have already adopted a "China plus one" strategy, diversifying final assembly locations beyond China. India's tech advantage lies in its vast software and services industry talent pool, with around 20% of global chip designers working in the country for multinational corporations. Despite uncertainties, the US and mainland China remain the top-end markets. In 2025, India had revenues of Rs. 4,64,940 crore (US$ 54 billion) in the global semiconductor market, accounting for 6.5% of the total.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.