The semiconductor market in India has displayed impressive expansion, with a CAGR of 12.6% from FY17 to FY23, resulting in a market value of USD 33 billion. A report by Motilal Oswal suggests that India's engineering expertise is set to have a vital impact on the worldwide semiconductor industry, particularly with a notable shortage of workers in the sector.

According to the report from the Semiconductor Equipment and Materials International (SEMI), the worldwide semiconductor industry is projected to require approximately 1 million workers by 2030. According to the report, India, with its annual production of 800k new engineers and specialization in software development and design, has the potential to help alleviate the global talent shortage.

The report mentioned that the semiconductor market worldwide is projected to hit USD 1 trillion by 2030. The semiconductors demand is influenced by three trends: IoT, AI, and Quantum. The first wave is driven by IoT and industry 4.0 transition, the second wave by AI, and the third wave by Quantum and Industry 5.0 adoption.

The growth is predicted to speed up, with forecasts showing a market size of USD 80.3 billion by FY28, demonstrating a CAGR of 19.6 per cent from FY23 to FY28.