India’s semiconductor demand to see 15% CAGR, hit $108 billion by 2030: UBS report

The Indian semiconductor industry's end-demand revenues will double from 2025 to 2030, growing from $54 billion to $108 billion, according to a report by financial services firm UBS. The report anticipates that the revenue from the localization opportunities will stay around 13 billion in revenues by 2030.

"We expect its semiconductor end-demand revenues to double from 2025 to 2030, growing from $54 billion to $108 billion. So we see strong growth ahead for the Indian market, including a localization opportunity where we anticipate $13 billion in revenues in 2030," the UBS report added.

India's semiconductor market growth

The report added that India's semiconductor end market will grow by 15 per cent Compound annual growth rate (CAGR) from 2025 to 2030, with annual revenues reaching $108 billion in 2030. Due to India's favourable demographics, UBS said that this 15 per cent CAGR estimate is faster than our forecast for the global semiconductor end market.

That fuels strong electronics demand (and, in turn, semiconductors), rising enterprise adoption of advanced semiconductors, and favourable government policies. According to the report, India accounts for only 0.1 per cent of global wafer capacity, around one per cent of annual equipment spending, and 6.5 per cent of semiconductor end-demand share.

The UBS added that major tech companies are evaluating the relocation of their supply chains amid the ongoing tariff uncertainties. "A few companies have already embarked on their "China plus one" strategy by diversifying their final assembly locations beyond China," the report added.
 

China's advantage?

India's tech advantage lies mostly in its vast talent pool in the software and services industry, whereas mainland China's dominance is in tech manufacturing. In semiconductors, too, India has a unique advantage, with around 20 percent of global chip designers working in the country for multinational corporations. Despite these uncertainties, the US and mainland China are the top-end markets. At 6.5 per cent, India is a solid end market for global semiconductors, with USD 54 billion in revenues in 2025.

According to Delloite's 2025 global semiconductor industry outlook, chip sales are set to soar in 2025, led by generative AI and data centre build-outs, even as demand from PC and mobile markets may remain muted.

To evolve and keep pace with the changing face of design, the industry may want to consider new ways to handle complex design processes. The chip industry is already exploring digital twins to emulate and visualize complex design processes step by step, including the ability to move around or swap chiplets to measure and assess the performance of a multi-chiplet system.