India Semiconductor Materials Market Research Report: By Product (Fab Materials, Packaging Materials) and By Application (Computers, Communications)- Forecast to 2035

India Semiconductor Materials Market Overview:

The India Semiconductor Materials Market Size was estimated at 2.34 (USD Billion) in 2023. The India Semiconductor Materials Industry is expected to grow from 2.44(USD Billion) in 2024 to 4.92 (USD Billion) by 2035. The India Semiconductor Materials Market CAGR (growth rate) is expected to be around 6.558% during the forecast period (2025 - 2035).

Key India Semiconductor Materials Market Trends Highlighted

The India Semiconductor Materials Market is witnessing significant trends driven by the rapid growth of the electronics and IT sectors in the country. The government's initiatives, such as the "Make in India" program, are aimed at boosting local manufacturing capabilities, which include semiconductor materials. This policy encourages foreign direct investment and collaboration with global semiconductor companies, positioning India as a key player in the global supply chain. A notable trend is the focus on enhancing local production of semiconductor materials to reduce dependence on imports, aligning with the Vision for Aatmanirbhar Bharat, which promotes self-reliance in strategic sectors, including electronics.One of the gaps in the India Semiconductor Materials Market is the lack of investment in research and development in semiconductor technology. India’s blossoming ecosystem of startups has the potential to advance innovation in material science, including fabrication and packaging. Moreover, the growing market for electric vehicles and renewable energy services opens up new opportunities for semiconductor materials in these areas. Recently, there seems to be an increase in collaborations between Indian companies and multinational companies for the development of semiconductor technologies. Such partnerships help to strengthen the local skills base while enabling faster implementation of advanced materials, including silicon carbide and gallium nitride semiconductors suited for high-performance applications.

Furthermore, the emphasis on sustainability is shaping the market, with a rising demand for eco-friendly and recyclable materials to meet environmental regulations. Overall, the India Semiconductor Materials Market is on a transformative path, driven by government support, technological advancements, and evolving industry needs.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

India Semiconductor Materials Market Drivers

Rapid Growth of Electronics Manufacturing in India

The India Semiconductor Materials Market Industry is significantly driven by the rapid growth of the electronics manufacturing sector in the region. According to the Ministry of Electronics and Information Technology, the electronics manufacturing output in India is expected to reach 300 billion USD by 2025, which showcases a substantial rise from 75 billion USD in 2017. This expansion is primarily supported by government initiatives such as the Production-Linked Incentive (PLI) scheme, which has been designed to promote local manufacturing of semiconductors and electronic components.Major organizations like Foxconn and Samsung are investing heavily in semiconductor manufacturing facilities in India, with Foxconn planning to invest around 1 billion USD in establishing semiconductor fabrication plants. Consequently, the growing electronics sector is anticipated to demand advanced semiconductor materials to meet production needs, thereby propelling the growth of the India Semiconductor Materials Market.

Government Initiatives Supporting Semiconductor Development

The Indian government's proactive initiatives aimed at enhancing semiconductor manufacturing capabilities significantly fuel the growth of the India Semiconductor Materials Market Industry. The recent 'Semiconductor Policy' introduced by the Indian government aims to attract over 10 billion USD in investments for creating semiconductor manufacturing hubs. This policy not only provides financial incentives for setting up manufacturing units but also encourages Research and Development (R&D) in innovative semiconductor technologies.The impact of organizations like the Electronics Sector Skill Council of India, which focuses on skill development for semiconductor manufacturing, further synergizes growth prospects in this sector. As the government actively promotes the establishment of a self-reliant semiconductor ecosystem, the increased investment and workforce specialization will contribute to the market's expansion.

Increasing Demand for Semiconductor Materials in Automotive Industry

The growing demand for semiconductor materials in the automotive sector is another key driver of the India Semiconductor Materials Market Industry. With the automotive industry evolving towards electric vehicles (EVs) and advanced driver assistance systems (ADAS), the need for high-performance semiconductor materials is escalating. The Society of Indian Automobile Manufacturers (SIAM) reports a projected growth rate of approximately 20% annually for the EV segment in India, which needs an array of semiconductor components for battery management systems, power supplies, and electric motors.As established automotive companies like Tata Motors and Mahindra Electric work towards launching new electric models, the demand for semiconductor materials is likely to surge, further propelling the growth of the India Semiconductor Materials Market.

India Semiconductor Materials Market Segment Insights:

Semiconductor Materials Market Product Insights

The India Semiconductor Materials Market is witnessing significant growth, particularly within the Product segment, which includes crucial categories such as Fab Materials and Packaging Materials. Fab Materials are key to the semiconductor manufacturing process, serving multiple functions in the fabrication of integrated circuits. These materials include various chemicals and gases essential for wafer fabrication. The increasing demand for advanced semiconductor technologies and miniaturized devices in India drives the demand for high-quality Fab Materials.Meanwhile, Packaging Materials play a vital role in ensuring that these semiconductors function effectively after production. They provide protection from environmental factors and enhance performance features, enabling the transformation of raw silicon chips into functional electronic devices. With the rise of electric vehicles, artificial intelligence, and the Internet of Things in India, the demand for robust and reliable packaging solutions is expected to increase significantly. As domestic production capacity expands, backed by government initiatives promoting semiconductor manufacturing, the relevance of these materials becomes even more pronounced.The India Semiconductor Materials Market benefits from rich local resources and an increasingly skilled workforce, contributing to the growth of these products. Overall, advancements in material science and technology will likely shape the future landscape of this segment, ensuring that India can leverage its position in the global semiconductor supply chain. The industry is also aligning itself with sustainability trends by exploring eco-friendly materials and processes, which could present new opportunities within the market landscape.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Semiconductor Materials Market Application Insights

The Application segment of the India Semiconductor Materials Market plays a crucial role in shaping the industry's growth trajectory. This segment encompasses various applications, prominently featuring Computers and Communications. The Computers market is significantly driven by the rapid growth in personal and enterprise computing, influenced by the increased demand for high-performance computing solutions and cloud services. Meanwhile, the Communications sub-sector is pivotal as the expansion of 5G networks and mobile communications technologies creates a demand for advanced semiconductor materials to enhance connectivity and data transmission efficiency.Recent government initiatives to support digital infrastructure in India are expected to bolster growth in these segments, aligning with the global shift towards digital transformation. As the market progresses, it reflects a notable trend towards miniaturization and energy efficiency, ensuring that semiconductor materials keep pace with evolving technological demands. In essence, strong growth momentum in end-user applications reinforces the significance of the Application segment within the broader India Semiconductor Materials Market landscape.

India Semiconductor Materials Market Key Players and Competitive Insights:

The India Semiconductor Materials Market is experiencing significant growth, driven by the increasing demand for electronic devices and advancements in technology. As the nation positions itself to become a global hub for semiconductor manufacturing, various stakeholders are competing to establish a strong foothold in this rapidly evolving sector. The competitive landscape is characterized by several multinational corporations and local entities focusing on innovation, supply chain optimization, and strategic partnerships. Factors such as government initiatives, infrastructural improvements, and the burgeoning electronics market in India play pivotal roles in shaping the competitive dynamics of the semiconductor materials sector. Companies are investing heavily in research and development to enhance their product offerings and ensure they meet the evolving requirements of downstream applications.Focusing on Advanced Micro Devices in the India Semiconductor Materials Market reveals a company with notable strengths, particularly in its focus on high-performance computing and advanced graphics solutions. Advanced Micro Devices has established a significant presence in India through strategic partnerships and collaborations with local tech firms and research institutes. By leveraging its global expertise while adapting to local market needs, the company has successfully integrated its cutting-edge technologies into the Indian semiconductor landscape. Their commitment to innovation has allowed them to remain competitive, as they consistently develop new materials and solutions that cater to the increasing demands of various consumer electronics, thereby contributing to the overall growth of the sector.Lam Research, on the other hand, is recognized for its expertise in critical processes for semiconductor manufacturing, particularly in etch and deposition systems. Within the India Semiconductor Materials Market, Lam Research has developed a strong reputation for its advanced technologies and service offerings that enhance manufacturing efficiency and yield. The company’s portfolio includes a wide range of products that support semiconductor fabrication, which are increasingly essential as the industry moves toward smaller nodes and more complex designs. Lam Research has strategically engaged in partnerships and collaborations with local semiconductor manufacturers to foster innovation and ensure the effective implementation of its solutions in India. Furthermore, the company has been involved in mergers and acquisitions to strengthen its market position and expand its capabilities, allowing it to tailor its offerings to meet the unique needs of the Indian market effectively.

Key Companies in the India Semiconductor Materials Market Include:

• Advanced Micro Devices


• Lam Research


• Samsung Electronics


• Micron Technology


• STMicroelectronics


• ASML Holding


• Tata Chemicals


• Texas Instruments


• GlobalFoundries


• KLA Corporation


• Intel Corporation


• Applied Materials


• NXP Semiconductors


• Larsen and Toubro


• Indium Corporation

India Semiconductor Materials Market Industry Developments

The India Semiconductor Materials Market is experiencing significant developments, with major players expanding their footprint. In October 2023, Tata Chemicals announced plans to invest in semiconductor-grade materials to strengthen local supply chains, a move supporting the government's initiative to boost domestic manufacturing. Meanwhile, the acquisition of a significant stake by GlobalFoundries in a local fab facilities project indicates a growing interest in India as a manufacturing hub. Lam Research and Applied Materials have also expanded their operations in the country, aligning with the increasing demand for advanced semiconductor production materials. Additionally, in September 2023, Intel Corporation confirmed its intention to partner with Indian start-ups focused on semiconductor innovations, underscoring the need for collaborative growth in the sector. The valuation of companies like Micron Technology and STMicroelectronics has surged due to the heightened global demand for chips and materials, potentially impacting their market strategy in India. The preceding years have shown a trend where companies, including Samsung Electronics and Texas Instruments, significantly ramped up their investments and R&D in manufacturing capabilities, establishing India as a critical player in the semiconductor landscape.

India Semiconductor Materials Market Segmentation Insights

Semiconductor Materials Market Product Outlook

• Fab Materials


• Packaging Materials

Semiconductor Materials Market Application Outlook

• Computers


• Communications

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	2.34(USD Billion)
MARKET SIZE 2024	2.44(USD Billion)
MARKET SIZE 2035	4.92(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	6.558% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Advanced Micro Devices, Lam Research, Samsung Electronics, Micron Technology, STMicroelectronics, ASML Holding, Tata Chemicals, Texas Instruments, GlobalFoundries, KLA Corporation, Intel Corporation, Applied Materials, NXP Semiconductors, Larsen and Toubro, Indium Corporation
SEGMENTS COVERED	Product, Application
KEY MARKET OPPORTUNITIES	Growing demand for consumer electronics, Government incentives for local manufacturing, Expansion of electric vehicle market, Advancements in 5G technology, Increased investment in research and development
KEY MARKET DYNAMICS	growing demand for electronics, government initiatives supporting manufacturing, advancements in semiconductor technology, rising investments in R&D, supply chain disruptions and challenges
COUNTRIES COVERED	India