India's Semiconductor Equipment Market Surges Amid Multiple Approved Fabs and OSAT Projects

India has seen unprecedented semiconductor manufacturing activity since 2024. A 28-nanometer fab is under construction, several packaging facilities are nearing completion, and many more projects are in the pipeline—indicating robust momentum. Block by block, the sector is establishing itself at a pace never before witnessed in the country. Virtually every semiconductor equipment company is targeting this market. In addition to demand for new equipment, there is significant scope for refurbished semiconductor equipment, driven by India's mature 28nm node manufacturing and established packaging technologies. This article provides the current size of the semiconductor manufacturing equipment market in this growing sector.

India's semiconductor equipment market is estimated in the range of 30 billion in 2025, driven by construction of a 28-nanometer fab and multiple packaging facilities nearing completion. The market, part of a $50-54 billion overall semiconductor consumption sector, reflects 0.1% of global wafer fab capacity and over 90% import dependency for equipment and materials.

The segment covers tools for wafer fabrication, testing, and assembly in chip production. Growth stems from the India Semiconductor Mission (ISM) and Production-Linked Incentive (PLI) scheme, with approvals for four new fabs in 2024-2025 and investments exceeding $10 billio...