India at decisive inflection point in global semiconductor ecosystem

Endiya Partners, a leading early-stage Deeptech venture capital firm, released the “India’s Semiconductor Moment: Perspectives from DEMO,” a comprehensive report capturing insights from DEMO: Semiconductors, the inaugural edition of its new DEMO (Deeptech Exponential Market Opportunities) platform.

DEMO is a first-of-its-kind initiative to showcase India’s Deeptech innovation across multiple verticals -- including Semiconductors, Biotech, Cyber Security, and Artificial Intelligence, through live product demonstrations, policy dialogue, and investor engagement. 

The inaugural edition, DEMO: Semiconductors, held on September 22, 2025, at the Bangalore International Centre, convened over 100 entrepreneurs, investors, policymakers, and corporate leaders for a focused exploration of India’s semiconductor design and manufacturing readiness.

India’s semiconductor inflection point
The report positions India at a decisive moment in semiconductor development. India today employs 150,000 semiconductor design engineers (~20% of global talent), within a broader pool of 220,000 professionals spanning design, manufacturing, and packaging. Yet, the country currently accounts for less than 0.5% of global fabrication capacity, underscoring the opportunity to bridge design strength with manufacturing depth.

The India Semiconductor Mission (ISM), launched in December 2021 with an outlay of ₹760 billion ($8.67 billion), has already mobilized ₹1.6 trillion (~$18 billion) in private investments across 10 approved projects, creating capacity for ~90 million chips per day. 

India’s domestic semiconductor market is projected to double from $52 billion to $103 billion by 2030, driven by AI infrastructure, electric mobility, 5G / 6G networks, defense modernization, and industrial automation.

Seven areas
“India stands at a decisive inflection point in the global semiconductor ecosystem, evolving rapidly from a consumption-driven market into a design-and-manufacturing powerhouse,” said Sateesh Andra, Managing Partner, Endiya Partners. 

“Through DEMO: Semiconductors, we witnessed how India’s Deeptech entrepreneurs are converting design depth into investable IP and application-specific silicon opportunities. This report maps where India can build a sustainable advantage.”

The report highlights seven opportunity areas where India can lead: EDA and IP Development; Analog / Mixed-Signal / RF; Power Semiconductors; Chiplets and Advanced Packaging; Test and Metrology; Tools and Equipment; and Trusted Supply Chains for automotive, telecom, defense, and data-center applications.

Ecosystem momentum and next steps
More than 100 semiconductor startups now operate in India, spanning design, EDA, AI chips, and power devices.

Venture investment rose from $5 million (2023) to $28 million (2024), supported by the India Deep Tech Investment Alliance’s $1 billion commitment for the next decade. The Design-Linked Incentive (DLI) Scheme has sanctioned ₹803 crore for 23 projects, supporting 278 institutions and 72 startups, leading to six tape-outs and ten venture-funded companies.

Panelists at DEMO commended the government’s co-investment approach through ISM and DLI while stressing that policy momentum must now translate into execution, reliability, and scale. They emphasized the need to build multi-disciplinary talent - extending beyond engineering into product, business, and go-to-market roles, to realize India’s Deeptech ambitions.

The report outlines structural challenges:
• Manufacturing Gaps – No operational advanced-node fabs; limited ATMP / OSAT capacity.
• Infrastructure Dependence – High power (~169 MWh per fab annually) and water (~8.9 million gallons/day) requirements demand reliable utilities and logistics.
• Talent Shortfall – Projected deficit of 10,000-13,000 specialized manufacturing professionals by 2027.
• International Partnerships
• Application-specific markets with domestic and export potential

Early progress is visible: three greenfield projects under ISM are targeting pilot production by 2026–27, signaling the shift from design-led activity to manufacturing outcomes. Simultaneously, domestic demand is strengthening as automotive electronics, industrial IoT, and defense systems drive localization, while global OEMs seek supply-chain diversification beyond East Asia.

Government and industry perspectives
Ajay Prakash Sawhney, Former Secretary, MeitY, observed: “For Deeptech, we need this kind of conversation with experts and diverse participants. The problem set has emerged clearly, numerous solutions have been proposed, and a comprehensive plan of action can emerge from this initiative.”

Executives from Intel, AMD, NXP Semiconductors, Qualcomm, Texas Instruments, and Marvell joined the discussions, underlining India’s growing relevance in their global design and R&D networks.