New Delhi: India’s semiconductor market, at $54.3 billion in 2025, is expected to touch $103.5 billion by 2030 growing at a 13.8 per cent compound annual growth rate (CAGR) -- outpacing global benchmarks, a report said on Thursday. 

"The nation's semiconductor story is still anchored in the devices we use every day, smartphones, laptops, and industrial systems, which together make up about 70 per cent of the market," Quess Corp, a workforce solutions provider, said in its report.

With the rise in demand for electric vehicles, 5G rollouts, and the rapid buildout of data centres, the market for advanced chips is set for an unprecedented expansion, with the hyperscale capacity expected to grow by more than 75 per cent by 2030 and EVs targeted to make up nearly a third of all new vehicles.

The India Semiconductor Mission (ISM) is laying the foundation for domestic capability, backed by Rs 1.6 lakh crore worth of projects and close to 29,000 new jobs.

Alongside this, investments such as Micron’s ATMP plant in Gujarat are strengthening packaging and testing depth, while state initiatives in regions like Tamil Nadu, Kerala, and Gujarat are helping Tier-2 clusters emerge as serious semiconductor destinations.

“India’s semiconductor industry is entering a defining decade. As the Government of India fast-tracks approvals for ISM 2.0, which is likely to exceed $10 billion, our report highlights both the scale of opportunity and the challenges in the talent readiness aspect," said Kapil Joshi, CEO–IT Staffing, Quess Corp.

From everyday-use devices to electric vehicles and advanced data centres, demand is expanding across the board, and India is becoming an integral part of global supply chains. What makes this story unique is the combination of scale and capability, he added.

India’s semiconductor global capabilities centres (GCCs) are no longer back-end support units. Almost half of new chip programmes now include AI accelerators, and one-third of verification teams are using machine learning.

"Engineers here are already working on next-gen domains such as multi-die integration, AI-assisted place-and-route, TinyML firmware, and AI-driven timing closure. These advances make India a testing ground for AI-first design workflows that global players are beginning to adopt," the report noted.

India already has more than 250,000 semiconductor professionals, with 43,000 new postings in 2024–25.

This pool is projected to grow by over 120 per cent to nearly 400,000 by 2030, making India the world’s second-largest semiconductor talent hub after the US.

The workforce spans across design, embedded systems, EDA tool development, and ATMP manufacturing, showing that India is building capability across the entire value chain, the report stated.

(IANS)