As we embark on 2025, the semiconductor industry in India is poised to play a pivotal role in shaping the future, driven by advancements in AI, 5G, and sustainable technologies. From breakthroughs in AI and 5G to electrification of transportation and renewable energy integration, semiconductors continue to power the digital economy and drive innovation across various industries.Â
Semiconductor Industry in India and its Current Landscape
After an adverse 2023 decline, the semiconductor industry globally has recovered drastically in 2024, with revenue increase of 13% to $588 billion. The World Semiconductor Trade Statistics (WSTS) has predicted further growth in 2025 which is driven by demand for AI chips, 5G infrastructure and automotive solutions. The fast growing semiconductor ecosystem in India has firmly established its reputation as an essential link in the global value chain, bolstered by government programs such as the Production Lined Incentive (PLI) scheme. The recent plan of developing three semiconductors units in Gujrat and Dholera highlights the nation’s commitment to becoming a semiconductor manufacturing hub.Â
Trends Shaping 2025
- AI and the Intelligent Edge
In 2025, AI specific chips are expected to reach $50 billion in sales worldwide as artificial intelligence a key factor in driving the innovation in semiconductors industry. These chips are important in applications ranging from real time industrial automation to optimizing battery performance in electric vehicles (EVs). These advancements highlight the important role of semiconductors in enabling efficient, intelligent and decentralized systems.
- Electrification and Green Technologies
The global shift towards electrification, particularly in transportation, has elevated the role of semiconductors in EVs and renewable energy solutions. ADI offers its advanced Battery Management Systems (BMS) and energy conversion technologies to help extend EV rand and reduce charging times while making sure there’s energy efficiency in smart grids. This focus aligns with India’s vision of self-reliance in smart mobility and clean energy.
- India’s Rising Semiconductor Ecosystem
India’s Emerging Semiconductor Landscape with the Indian government approving initiatives which are aimed at reducing import decency and develop local talent, India’s semiconductor sector has been an important area of focus in the nation. The state-of-the-art fab units and Outsourced Semiconductor Assembly and Test (OSAT) facilities in Gujrat shows the nations ambition to integrate into global value chains.
- Advanced Communications and 5G
Semiconductors are crucial for enabling high-speed connectivity and IoT integration with the adoption of 5G and emergence of 6G technologies. ADI’s RadioVerse® platform simplifies the development of Open Radio Access Networks (O-RAN) while accelerating the deployment of advanced communications infrastructure.
What Lies Ahead
As the semiconductor industry advanced towards 2025, challenges like talent shortages, intense global competition and infrastructure gaps remains. However, the opportunities far outweigh these challenges. By using 30 years of presence in India, ADI is committed to further expand its role as a key enabler in the country’s technological transformation. India’s ambition to become a semiconductor powerhouse will be supported in large measure by ADI’s emphasis on intelligent and innovative approaches, energy-efficient systems and cooperative research. The trajectory of ADI exhibits the revolutionary potential of semiconductors in solving worldwide problems while creating a future in which technology seamlessly connects the digital and physical realms. Together, with government and industry partners, ADI is building a future that is connected which is equitable with a focus on sustainability.
Links:
https://www.wsts.org/76/Recent-News-Release
