New Delhi [India], March 18 (ANI): India's semiconductor sector is poised for a major transformation, moving from a USD 50 billion import-dependent market to a USD 300 billion self-reliant semiconductor ecosystem by 2035, according to a report by Deloitte.

The report noted that the semiconductor market in India is expected to grow significantly in the coming years.

It stated, 'The market is predicted to reach USD 120 billion by 2030 (from USD 45-50 billion in FY2024-25) and USD 300 billion by 2035, driven by AI, automotives, data centers and electronics manufacturing.'

India is currently heavily dependent on imports, with more than 90 per cent of its semiconductor requirements sourced from global supply chains. However, this dependence is expected to reduce significantly over time.

By 2030, India is projected to reduce its import dependency for semiconductor products and components by at least 40 percentage points by building ecosystem-led capacity and increasing localisation across key segments.

By 2035, around 60 per cent of the country's semiconductor demand is expected to be met through domestic production.

The report highlighted that by 2035, India is expected to develop substantial manufacturing capacity, including 4-5 silicon fabrication units (fabs), 8-10 compound fabs, 1-2 display fabs and 20-25 OSAT (outsourced semiconductor assembly and test) facilities.

These developments are being supported by initiatives such as the India Semiconductor Mission (ISM) and state-level incentives.

Demand for semiconductors in India is also expected to evolve significantly. The report said that mobile devices, automotive, computing and data centres will together account for more than 70 per cent of semiconductor demand by 2035.

High-growth areas such as electric vehicles (EVs), advanced driver-assistance systems (ADAS), AI workloads and high-performance computing (HPC) are expected to play a major role in shaping demand patterns.

The report also noted that India's data centre sector has seen strong investment momentum, attracting around USD 60 billion between 2019 and 2024, including USD 19 billion in 2024 alone.

The industry is expected to attract another USD 45 billion in investments between 2025 and 2027, driven by AI adoption, cloud expansion and supportive government policies.

In the automotive sector, rising EV adoption is expected to significantly boost semiconductor demand. EV penetration in India is projected to increase from 7.8 per cent to 30 per cent by 2030 and further to more than 60 per cent by 2035.

The report added that the growth of the semiconductor ecosystem will also attract investments in supporting industries such as substrate manufacturing, speciality gases, high-purity chemicals, cleanroom infrastructure and semiconductor manufacturing equipment.

Overall, the report data indicates that India is on track to build a comprehensive semiconductor ecosystem, reduce import dependence and strengthen its position in the global value chain over the next decade. (ANI)