India Semiconductor Foundry Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2026 - 2032)

The India semiconductor foundry market is witnessing steady growth as the country strengthens its domestic semiconductor manufacturing capabilities and expands its electronics ecosystem. The market is valued at USD 7.8 billion in 2025 and is projected to reach USD 11.4 billion by 2032, growing at a CAGR of 5.5% during the study period from 2019 to 2032. Rising demand for semiconductors across consumer electronics, automotive, industrial, and telecom applications is supporting sustained market expansion.

Government-led initiatives aimed at promoting domestic semiconductor manufacturing, reducing import dependence, and attracting global investments are playing a key role in market development. Expansion of electronics manufacturing services, increasing chip design activity, and growth in demand for mature-node and specialty semiconductors are reinforcing the importance of foundry services within India's semiconductor value chain.

Gujarat represents the largest state-level market, supported by strong industrial infrastructure and semiconductor-focused investments, while Tamil Nadu is emerging as the fastest-growing state due to expanding electronics manufacturing clusters, skilled workforce availability, and favorable policy support. As India continues to build a resilient semiconductor ecosystem, the semiconductor foundry market is expected to maintain stable growth throughout the forecast period.

Key Insights

The India semiconductor foundry market is valued at USD 7.8 billion in 2025 and is expected to reach USD 11.4 billion by 2032, reflecting steady long-term growth driven by rising semiconductor demand.

The market is projected to grow at a CAGR of 5.5% during 2019-2032, supported by expansion of domestic electronics manufacturing and policy-driven investments.

Increasing demand for semiconductors across consumer electronics, automotive, and industrial applications is strengthening foundry service requirements.

Gujarat accounts for the largest share of the market, driven by strong industrial capacity, infrastructure readiness, and semiconductor manufacturing initiatives.

Tamil Nadu is the fastest-growing state, supported by expanding electronics manufacturing clusters and growing investment inflows.

Focus on strengthening domestic chip manufacturing is reducing reliance on imported semiconductors and foundry services.

Growth in mature-node and specialty semiconductor production is supporting consistent foundry utilization.

Collaboration between chip designers, electronics manufacturers, and foundry operators is enhancing ecosystem integration.

Investments in manufacturing infrastructure and process optimization are improving capacity and operational efficiency.

Continued policy support, infrastructure development, and rising semiconductor consumption are expected to sustain long-term growth in the India semiconductor foundry market.