India semiconductor market to reach $155B

According to a report by Kotak Mahindra Bank, India's semiconductor market is projected to reach $155 billion by 2031, growing at a 20% CAGR and increasing India's share of global semiconductor consumption to roughly 9%. The market is estimated at $62 billion in 2026, with India accounting for about 6% of global consumption. The report highlights India's strong chip-design ecosystem, with around 300,000 designers (20% of global workforce, second only to the United States), and outlines ambitions to expand into wafer fabrication and OSAT/ATMP. Government initiatives like the Chip-to-Startup (C2S) programme and Design Linked Incentive (DLI) support the sector. Key projects include Tata-PSMC's Dholera 28nm fab, and investments by Micron, Tata, Kaynes, and CG Semi. OSAT/ATMP capacity is expected to rise from 15 million chips per day in 2026 to 48 million by 2028, with projects involving CG Semi, Kaynes Semicon, Tata OSAT, and the HCL Group-Foxconn joint venture. India's OSAT costs are estimated 20-30% lower than peers, and the government offers up to 50% capex support. Demand drivers include 5G, electric vehicles, defence, and AI data centres, with India's CY30 end-market estimated at $103 billion. However, India remains dependent on imports for semiconductor equipment, specialty chemicals, electronic-grade gases, silicon wafers, and other inputs.