India’s semiconductor market is on track to double to $103 billion by 2030, fueled by advancements in artificial intelligence (AI), electric vehicles (EVs), and defense technologies. A recent report from Endiya Partners projects a significant increase in data center capacity from 1.5 GW to 9 GW by 2030, with the IndiaAI Mission surpassing GPU deployment targets.
By 2024, the domestic semiconductor market is expected to reach $103 billion, up from $52 billion in 2024, as outlined in the report ‘India Semiconductor Ecosystem: From Policy to Execution.’ Despite this growth, India’s semiconductor ecosystem heavily relies on imports and faces challenges in key areas such as analog and mixed-signal intellectual property (IP) capabilities.
Indian semiconductor startups have seen substantial funding growth, with investments reaching $50 million in 2025, indicating a growing interest in the industry. Venture capital funds are particularly eyeing opportunities in horizontal ecosystem infrastructure rather than chip fabrication. Additionally, there is a potential for supply chain localization around semiconductor assembly and test (OSAT) operations.
Endiya Partners’ managing partner, Sateesh Andra, highlighted the rapid expansion of the sector, noting the emergence of various types of companies in India focusing on IP, fabless products, services, and AI-driven electronic design automation (EDA). The next couple of years are expected to bring a significant increase in venture investments across these domains.
Source: Tech-Economic Times