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India’s semiconductor market projected to reach $200 billion by 2035
India uses many computer chips in phones, cars, factories and other products.
A new report says India’s chip market could grow from nearly $64 billion in 2026 to $200 billion by 2035.
Consumer electronics currently uses the largest share of these chips.
Cars and industrial equipment also create significant demand.
India imports many chips, so the report says more production should happen inside the country.
India already has nearly one-fifth of the world’s chip design engineers.
The report says India could expand into chip manufacturing, advanced packaging and related technologies.
It also calls for cooperation among companies, government and universities.
Better policies, shared industrial facilities and specialised training could help make that growth possible.
India’s semiconductor market is projected to grow from nearly $64 billion in 2026 to $200 billion by 2035.
Consumer electronics represents 30% of the market, followed by automotive at 16% and industrial applications at 15%.
Semiconductor imports rose from $5.7 billion in FY17 to $30.3 billion in FY25.
India has nearly 20% of the world’s chip design engineers, supporting domestic design and manufacturing ambitions.
The EY–IESA report recommends advanced packaging, manufacturing clusters, policy coordination and specialised talent programmes.
- Who
- The EY–IESA report, India’s semiconductor industry, government, industry and academia; the article quotes Ashok Chandak and Aisha Ali Hussaini.
- What
- A report projects India’s semiconductor market will reach $200 billion by 2035 and outlines steps to build a broader domestic ecosystem.
- Where
- India, within the global semiconductor supply chain.
- When
- The report was published on September 20, 2026; its market projection covers 2026 to 2035.
- Why
- Rising chip demand and imports create an opportunity to expand domestic manufacturing, innovation, supply-chain resilience and value addition.
Key facts
- Projected market size
- Nearly $64 billion in 2026, rising to $200 billion by 2035
- Largest market segment
- Consumer electronics, accounting for 30% of India’s semiconductor market
- Other major segments
- Automotive at 16% and industrial applications at 15%
- Semiconductor imports
- Increased from $5.7 billion in FY17 to $30.3 billion in FY25
- Chip design talent
- India houses nearly 20% of global chip design engineers
- Electronics production
- Rose from ₹1.9 lakh crore in FY15 to ₹11.3 lakh crore in FY25
- Priority technologies
- Advanced packaging, compound semiconductors, photonics and chip-to-system integration
Quotes
Aisha Ali Hussaini
Partner and Semiconductor Tax Leader at EY India
“India now has a unique opportunity to combine its strengths in engineering talent, electronics demand, design capabilities and emerging manufacturing capacity with resilient global supply-chain partnerships.”
thehindubusinessline.com
“India has a powerful combination of market scale, engineering talent and policy momentum. Its rapidly expanding electronics ecosystem adds to this opportunity...”
thehindubusinessline.com
Sources
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