“India’s Semiconductor Moment: Perspectives from DEMO,” the inaugural edition of Endiya Partners’ is a comprehensive report that highlights findings from DEMO: Semiconductors, new DEMO (Deeptech Exponential Market Opportunities) platform.
Through live product demonstrations, policy dialogue, and investor engagement, DEMO is a first-of-its-kind initiative that showcases India’s Deeptech innovation across several verticals, including semiconductors, biotech, cybersecurity, and artificial intelligence.
Over 100 entrepreneurs, investors, legislators, and business executives gathered at the Bangalore International Centre on September 22, 2025, for the first edition of DEMO: Semiconductors, which focused on India’s semiconductor design and manufacturing readiness.
India’s Semiconductor Inflection Point
According to the report, India is at a turning point in the development of semiconductors. In addition to 220,000 professionals working in manufacturing, design, and packaging, India currently employs 150,000 semiconductor design engineers, or around 20% of the world’s skill. However, the nation currently has less than 0.5 percent of the world’s fabrication capacity, highlighting the potential to combine industrial depth and design strength.
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.
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.
Key Comments:
“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 full DEMO Insights Report 2025 – India’s Semiconductor Moment is available at https://www.endiya.com/demo
