India Semiconductor Production Equipment Market Size was estimated at 7.22 (USD Million) in 2024.The India Semiconductor Production Equipment Market Industry is expected to grow from 8.18(USD Million) in 2025 to 20.08 (USD Million) by 2035. The India Semiconductor Production Equipment Market CAGR (growth rate) is expected to be around 8.501% during the forecast period (2025 - 2035).
The India Semiconductor Production Equipment Market is experiencing significant trends shaped by various factors. One major market driver is the growing demand for electronics and digital devices, propelled by increasing smartphone usage and the expansion of the internet. The Government of India is actively promoting initiatives like "Make in India" and the National Policy on Electronics, which encourage domestic manufacturing and investment in semiconductor technology, driving the demand for advanced production equipment.
Furthermore, there is a strong push for self-sufficiency in semiconductor manufacturing, particularly in light of global supply chain disruptions.Opportunities in this market include the development of local semiconductor manufacturing facilities and fostering partnerships with international semiconductor companies. This can enhance collaboration on technology transfer and innovation, empowering India to become a key player in the global semiconductor landscape. The government's incentives to build semiconductor fabs and nurture start-ups focused on semiconductor design are creating avenues for growth and investment. In recent times, trends such as the increasing focus on sustainability and eco-friendly manufacturing practices have gained traction within the India Semiconductor Production Equipment Market.
Manufacturers are exploring energy-efficient technologies and materials that reduce waste and enhance the sustainability of production processes. Additionally, advancements in automation and artificial intelligence in production equipment are streamlining operations, increasing efficiency, and reducing costs. These trends contribute to a rapidly evolving landscape, positioning India as a viable option for semiconductor manufacturing and production equipment development.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Indian market is witnessing an unprecedented surge in demand for consumer electronics, which is a significant driver for the India Semiconductor Production Equipment Market Industry. According to government estimates, the consumer electronics market in India is projected to grow from USD 10 billion in 2020 to USD 21 billion by 2025, reflecting a compounded annual growth rate of 16%. This acceleration in demand is attributed to increasing disposable incomes, evolving digital lifestyles, and the rise in remote working and learning trends.
Companies like Sony, Samsung, and Xiaomi are significantly investing in manufacturing units in India to capitalize on this growing demand, thereby increasing the need for advanced semiconductor production equipment. This aligns with the Make in India initiative, which aims to boost domestic manufacturing and make India a global manufacturing hub. As these companies ramp up their production capabilities, they will require advanced semiconductor production technologies to meet the rising consumer demand.
The Indian government has introduced several initiatives to promote semiconductor manufacturing in the country, significantly influencing the India Semiconductor Production Equipment Market Industry. The semiconductor policy framework, which includes incentives for setting up fabrication units, has allocated around USD 10 billion to boost the semiconductor ecosystem. Notable companies like Intel and GlobalFoundries have expressed interest in expanding their operations in India, which can translate into substantial demand for semiconductor production equipment.
This aid from the government is important because the Indian semiconductor market is expected to clock in at USD 55 billion by 2026 which gives more opportunities for equipment suppliers and manufacturers in the region, as stated by the Ministry of Electronics and Information Technology.
The India Semiconductor Production Equipment Market Industry is being driven by rapid advancements in technology and innovation. With the advent of 5G technology and the Internet of Things (IoT), there is an increasing requirement for sophisticated semiconductor devices. According to the NASSCOM report, around 9 billion IoT devices are expected to be deployed in India by 2025. This growing demand for advanced semiconductor devices necessitates the use of state-of-the-art production equipment.
Established companies like TSMC and ASML are actively seeking partnerships with Indian firms to foster innovation in semiconductor technology, thereby bolstering the demand for semiconductor production equipment within India. Additionally, the push for Research and Development (R&D) activities will further expedite the adoption of innovative production technologies, ultimately benefiting the overall market dynamics.
The burgeoning electric vehicle (EV) market in India is emerging as a vital driver for the India Semiconductor Production Equipment Market Industry. The Indian government is targeting to have 30% of all vehicles on the road to be electric by 2030, promoting policies that support EV manufacturing. According to the Society of Indian Automobile Manufacturers, electric vehicle sales in India have surged by approximately 150% in recent years, and this trend is set to continue.
Major automotive companies like Tata Motors and Mahindra Electric are investing heavily in battery and semiconductor technologies, which require sophisticated production equipment. As the demand for EVs grows, the requirement for advanced semiconductor solutions in automotive applications will inevitably push the demand for semiconductor production equipment in India.
The India Semiconductor Production Equipment Market is experiencing notable growth fueled by the increasing demand for advanced electronic devices across various sectors, which is significantly influencing the Equipment Type segment. In this context, the market can be broadly categorized into three primary areas: Front-End Equipment, Backend Equipment, and Others. Front-End Equipment refers to the tools and machinery utilized in the early stages of semiconductor manufacturing, such as wafer fabrication and photolithography. This segment plays a critical role in determining the efficiency and yield of semiconductor production, thereby emerging as a crucial factor for companies aiming to scale their manufacturing capabilities.
The Backend Equipment segment involves processes such as assembly, packaging, and testing of semiconductor devices. As consumer demand intensifies for more compact and efficient electronics, this segment is gaining importance by ensuring that produced chips meet the stringent performance and reliability standards required in today’s market. Other Equipment categories may include test and measurement tools essential for ensuring quality control, maintaining performance, and validating semiconductor designs. The involvement of significant government initiatives and investments in nurturing semiconductor manufacturing in India is creating an encouraging environment for growth in these segments.
There is also a noted trend in India focusing on Research and Development within semiconductor production, suggesting that innovation will likely remain a continuous driver, ensuring that the country stays competitive on a global scale. Additionally, with the evolving landscape of technology and increasing integration of artificial intelligence, Internet of Things, and 5G, there exists a favorable opportunity for the expansion of all sub-segments within the Equipment Type category. Ultimately, the dynamics associated with the India Semiconductor Production Equipment Market segmentation showcase a landscape rich with opportunities, aligning well with current market demands and future trends.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The India Semiconductor Production Equipment Market, particularly within the Products segment, showcases a diverse landscape driven by the growing demand for semiconductor devices across various industry applications. Among the key components, Dicing Machines play a critical role in cutting wafers into individual die, ensuring precision and efficiency, which is pivotal for manufacturers striving for higher yield rates. Probing Machines are vital for electrical testing during the manufacturing process, enabling manufacturers to deliver reliable semiconductor products.
The Sliced Wafer Demounting tools facilitate the recovery of wafers from carriers, an essential process that supports material conservation efforts. Additionally, Cleaning Machines contribute to maintaining high purity levels in the production environment, which is essential for achieving the desired quality in semiconductor fabrication. Wafer Edge Grinding Machines are significant for enhancing the mechanical stability of wafers, while Polish Grinders are essential for achieving the required surface finish critical for advanced applications.
The segmentation of the India Semiconductor Production Equipment Market underscores the variety of solutions present to meet the evolving requirements of the semiconductor industry, thus driving overall market growth.Such dynamics suggest a landscape ripe with opportunities, given the strategic importance of these equipment types in optimizing production processes and enhancing innovation within the industry.
The India Semiconductor Production Equipment Market is rapidly evolving, with the Dimension segment playing a key role in its overall development. This segment encompasses various categories, including 2D, 3D, 5D, and others. Among them, 2D technology dominates due to its extensive use in traditional semiconductor manufacturing processes, offering significant efficiency and cost advantages. Meanwhile, 3D technology is gaining traction, driven by the increasing demand for higher performance and miniaturized devices in the electronics and IT sectors.
The need for advanced packaging solutions has further enhanced the relevance of the 5D sub-segment, particularly as India aims to boost its semiconductor fabrication capabilities under initiatives like 'Make in India The Others category provides a range of emerging technologies that contribute to the country's diverse semiconductor landscape. Collectively, these segments reflect the ongoing market growth, driven by factors such as rising consumer electronics demand, government support for semiconductor manufacturing, and the need for technological innovation.
As companies continue investing in Research and Development to enhance their capabilities, the India Semiconductor Production Equipment Market is well positioned for future growth and transformative advancements in technology.
The India Semiconductor Production Equipment Market is characterized by a rapidly evolving landscape where technological advancements, government initiatives, and global demand for electronic devices drive competitiveness. As India aims to enhance its semiconductor manufacturing capabilities, various companies are vying for market share by offering a wide range of production equipment that caters to both established manufacturers and emerging start-ups in the semiconductor sector. Competitive insights into this market reveal a focus on innovation, strategic partnerships, and investments in research and development.
Additionally, with the push for self-sufficiency in semiconductor production and the support from government policies, companies are positioning themselves to capitalize on this growth opportunity while navigating the complexities of supply chain dynamics and technological advancements.Hitachi HighTechnologies plays a pivotal role in the India Semiconductor Production Equipment Market, leveraging its superior technological expertise to provide advanced equipment essential for semiconductor manufacturing. The company’s extensive portfolio includes critical tools for wafer fabrication and inspection, which are paramount for ensuring the quality and efficiency of semiconductor devices.
The strong reputation of Hitachi HighTechnologies in delivering highly reliable and precise equipment contributes to its competitive strength in the Indian market. Additionally, the company's commitment to local partnerships and tailored solutions specifically aimed at the Indian semiconductor ecosystem further solidifies its position. With a focus on sustainability and innovation, Hitachi HighTechnologies is well-equipped to address the growing demands of the Indian semiconductor industry and support the country’s broader ambitions in technology development.Applied Materials is a prominent player in the India Semiconductor Production Equipment Market, known for its innovative solutions that support various stages of semiconductor manufacturing.
The company offers a comprehensive range of products and services, including advanced semiconductor fabrication equipment, inspection tools, and materials innovation solutions. With a strong market presence, Applied Materials benefits from its longstanding experience and ability to adapt its offerings to meet the specific needs of the Indian semiconductor landscape. The company has strategically undertaken mergers and acquisitions to enhance its technological capabilities and expand its footprint in India, fostering collaborations that bolster the local semiconductor supply chain. Applied Materials is well-regarded for its commitment to driving innovation and assisting Indian manufacturers in achieving operational excellence, making it a key contributor to the growth and advancement of the semiconductor production landscape in India.
Recent developments in the India Semiconductor Production Equipment Market have shown significant momentum, particularly with the government's push for self-reliance in semiconductor manufacturing as part of the Atmanirbhar Bharat initiative launched in 2020. Responses from major players like Hitachi High-Technologies, Applied Materials, and Tokyo Electron indicate ongoing investments aimed at ramping up local capabilities. In August 2023, KLA Corporation officially opened a facility in India to enhance its Research and Development efforts. Meanwhile, in July 2023, Lam Research announced a significant investment to expand its operations, reflecting the growing confidence in the Indian semiconductor landscape.
Additionally, Ultratech Cement participated in discussions regarding potential collaboration with local semiconductor manufacturers to provide necessary materials. As for mergers, there have been no recent publicly known mergers or acquisitions specifically involving the listed companies within the Indian market in the last few months. The growth in market valuation for companies involved suggests an optimistic outlook, with expectations that continued government support and increasing demand for semiconductor products will further stimulate development. Overall, India is positioning itself as a promising player in the global semiconductor fabrication ecosystem, focusing on advancements and local production capabilities.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 7.22 (USD Million) |
| MARKET SIZE 2024 | 8.18 (USD Million) |
| MARKET SIZE 2035 | 20.08 (USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 8.501% (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 Million |
| KEY COMPANIES PROFILED | Hitachi HighTechnologies, Applied Materials, Tokyo Electron, Advantest, KLA Corporation, Lam Research, Rudolph Technologies, Ultratech Cement, ASML, Screen Semiconductor Solutions, Semes, Soitec, Nikon, SUSS MicroTec, Teradyne |
| SEGMENTS COVERED | Equipment Type, Products, Dimension |
| KEY MARKET OPPORTUNITIES | Government incentives for local manufacturing, Rising demand for electronics, Growing investments in R&D, Expansion of semiconductor foundries, Increasing focus on sustainability technologies |
| KEY MARKET DYNAMICS | Rising government support initiatives, Increasing demand for consumer electronics, Growth in semiconductor manufacturing capacity, Technological advancements in production equipment, Competitive pricing pressures among suppliers |
| COUNTRIES COVERED | India |
Frequently Asked Questions (FAQ) :
The India Semiconductor Production Equipment Market is expected to be valued at 8.18 million USD in 2024.
By 2035, the market is anticipated to grow to 20.08 million USD.
The market is expected to grow at a CAGR of 8.501% from 2025 to 2035.
Front-End Equipment is expected to be valued at 3.25 million USD in 2024 and 8.2 million USD in 2035.
The Backend Equipment market is projected to be valued at 4.0 million USD in 2024 and 9.9 million USD in 2035.
Key players include Hitachi HighTechnologies, Applied Materials, Tokyo Electron, and KLA Corporation among others.
The value for Other Equipment is projected to be 0.93 million USD in 2024 and 2.98 million USD in 2035.
Key growth opportunities include the increasing demand for advanced semiconductor technologies and manufacturing capabilities.
The current geopolitical scenario is anticipated to influence supply chains and investment strategies within the semiconductor industry.
Digital transformation is driving investments in automation and smart manufacturing technologies in the semiconductor equipment sector.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Analyst Explore the profile of garvit vyas, one of our esteemed authors at market research future, and access their expert research contributions in the field of market research and industry analysis
Get in Touch
© 2025 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
