India’s Chip Surge Set to Hit $300 Billion by 2035 Growth: Report

India’s semiconductor scene is about to explode. According to a new report by Deloitte, the market’s heading for a massive jump and is expected to hit $300 billion by 2035. That’s miles ahead of the $45–50 billion projected for 2024–25. This growth is majorly driven by AI, smarter vehicles, and the boom in data centres.

Right now, India relies heavily on imports for chips as more than 90% come from abroad. However, there is a shift as the report titled ‘Technology, Media, and Telecommunications Predictions 2026’ says that homegrown manufacturers should supply over 60% of the chips the country needs by 2035. That turnaround comes from solid government backing and big investments across the industry.

India isn’t just trying to make a few chips and call it a day. The goal’s much bigger. It is to create an entire ecosystem with new silicon fabs, advanced manufacturing sites, display factories, and plenty of facilities to assemble and test chips. Most of the demand is coming from phones, cars, computers, and data centers, making up about three-quarters of the market.

Investors aren’t sitting on their hands. Huge investments are already coming in the approved projects while more is expected to come. If estimates are to be believed, investments worth more than $100 billion could come in the next decade thus supercharging tech innovation and building out infrastructure fast.

Apart from this, the industry also add around 2 million jobs by 2035 and that too not just on the factory floor, but in chip design and support areas too. If this has to happen then India needs to continue with the strong policy support, cut out bottlenecks, and ensure steady funding.

Source: The Economic Times