Semicon 2.0: India's chip market to hit $200B by 2035.

According to the EY-IESA report titled Semicon India 2.0: From Capacity Creation to Ecosystem Leadership, India’s semiconductor market is projected to expand more than threefold, growing from nearly ₹5.94 lakh crore ($64 billion) in 2026 to ₹18.57 lakh crore ($200 billion) by 2035. Consumer electronics currently drives the largest share of domestic demand at 30%, followed by the automotive sector at 16% and industrial applications at 15%. Emerging technology frontiers—including artificial intelligence, hyper-scale data centres, telecommunications, electric mobility, and advanced manufacturing—are set to create massive additional demand vectors, offering a critical window to convert domestic consumption into localized manufacturing and supply chain resilience. This market expansion is further underscored by India's semiconductor imports, which grew at a CAGR of 23% from ₹0.38 lakh crore ($5.70 billion) in FY17 to ₹2.62 lakh crore ($30.30 billion) in FY25, highlighting the urgent imperative for local fabrication facilities. Meanwhile, domestic electronics production surged nearly sixfold over a decade to ₹11.30 lakh crore ($130.68 billion) in FY25, with exports expanding elevenfold. Bolstered by hosting nearly 20% of the world's chip design talent, the report identifies advanced packaging, compound semiconductors, photonics, and chip-to-system integration as strategic focus areas, recommending integrated manufacturing clusters, state-level policy alignment under Semicon 2.0, and specialized talent certification frameworks.