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The next 18 months will be crucial as the ecosystem transitions from policy announcements to operational readiness.“>
AI infrastructure, electric mobility and defence modernisation will drive India‘s domestic semiconductor market over the next decade, according to a report by early-stage fund Endiya Partners. With data centre capacity expected to surge from about 1.5 GW to 9 GW by 2030 and the IndiaAI Mission already deploying 38,000 GPUs against an original target of 10,000, demand for chips is set to accelerate sharply.India’s domestic semiconductor market is expected to double from $52 billion in 2024 to $103 billion by 2030, the report said.While the opportunity is massive, the report titled “India Semiconductor Ecosystem: From Policy to Execution” highlights critical ecosystem gaps. Indigenous capabilities in analog and mixed-signal IP remain limited, over 90 per cent of semiconductor equipment and materials are imported, and manufacturing intelligence solutions for yield optimisation are still nascent.The next 18 months will be crucial as the ecosystem transitions from policy announcements to operational readiness, the report noted.
From an investment standpoint, Indian semiconductor startups raised about $50 million in 2025, up from $28 million in 2024 and $5 million in 2023.
For venture capital funds, however, the opportunity lies more in horizontal ecosystem infrastructure than in capital-intensive chip fabrication. The other opportunity is in supply chain localization around the fab-OSAT ecosystem, said a deeptech investor.”This is a fast-paced growth sector. Broadly, there are three to four types of companies emerging in India. Across IP, fabless products, services, and AI-driven EDA automation, we see a 4x-5x growth opportunity in venture investments over the next two years,” Sateesh Andra, managing partner at Endiya Partners, told ET.
These businesses typically require lower upfront capital, have shorter development cycles, and offer scalable, recurring revenue models. These make them better aligned with venture economics than full-stack chip fabrication plays, the report noted.
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