India Application-Specific Integrated Circuits (ASIC) Market - Strategic Insights and Forecasts (2025-2030)

Companies Profiled

India Application-Specific Integrated Circuits (ASIC) Market is anticipated to expand at a high CAGR over the forecast period.

India Application-Specific Integrated Circuits (ASIC) Market Key Highlights

• The Indian semiconductor ecosystem's core strength is in design, a foundational asset for the Application-Specific Integrated Circuit (ASIC) market, with global firms maintaining significant design centers in the country.
• Government initiatives, particularly the Semicon India Programme and the Design Linked Incentive (DLI) Scheme, directly incentivize the indigenous design and deployment of ASICs.
• Increasing demand in sectors like Automotive and Data Centers & Cloud Computing drives the need for high-performance, custom-silicon solutions, including advanced ASIC nodes like 5nm and below, to manage intense AI/HPC workloads.
• The recently approved establishment of semiconductor fabrication and Assembly, Testing, Marking and Packaging (ATMP) facilities in India marks a critical step toward creating a domestic supply chain, mitigating foreign supply chain shocks, and boosting the overall ASIC ecosystem.

The Indian Application-Specific Integrated Circuits (ASIC) market is transitioning from a consumption-centric design hub to an emerging center for localized manufacturing, heavily influenced by state-sponsored incentives. Driven by the strategic imperative of achieving self-reliance in electronics, India's government has introduced targeted programs to mitigate supply chain volatility and a substantial trade deficit in semiconductor products. This shift acknowledges the foundational role of ASICs—integrated circuits customized for a particular use rather than a general-purpose processor—in core economic and strategic sectors, including defense, telecommunications, and high-performance computing.

India Application-Specific Integrated Circuits (ASIC) Market Analysis

• Growth Drivers

The primary catalyst for ASIC demand is the national push for indigenous electronics manufacturing, encapsulated by the Make in India and Atmanirbhar Bharat programs. These policy directives directly increase demand by mandating or heavily favoring locally sourced components, thereby creating a captive market for ASICs in domestic production lines. Secondly, the accelerating digitization of core infrastructure requires custom, energy-efficient silicon solutions. For instance, the rise of on-device Artificial Intelligence (AI) for portable consumer electronics necessitates high-performance, power-constrained hardware, with an ASIC Vector Engine RISC-V architecture being investigated as a solution to balance computational power with efficiency and integration constraints for AI and data parallel applications. This complexity in design compels system integrators to use tailored ASICs over general-purpose processors, directly increasing custom silicon design engagement.

• Challenges and Opportunities

The foremost challenge constraining market growth is the historical absence of a large-scale domestic fabrication and Assembly, Testing, Marking and Packaging (ATMP) infrastructure. This forces Indian design houses and system companies to rely on global foundries for manufacturing, exposing the domestic supply chain to geopolitical risks and long lead times, which in turn acts as a headwind on domestic ASIC deployment. The key opportunity is the Design Linked Incentive (DLI) Scheme, which provides financial and infrastructure support to local companies for the design and deployment of semiconductor devices, including ASICs. This scheme lowers the historically high non-recurring engineering (NRE) costs associated with ASIC development, effectively derisking the initial investment and directly stimulating the demand for indigenous ASIC design services from domestic players.

• Raw Material and Pricing Analysis

ASICs are a physical product whose final form relies on advanced manufacturing processes involving high-purity silicon wafers and a complex array of specialty chemicals. The supply chain for the most critical raw material, the silicon wafer, is globally concentrated, with India historically dependent on imports for nearly all of its semiconductor product needs. The pricing dynamics are dominated by the cost of fabrication at advanced technology nodes (e.g., 5nm and 7nm), where capital investment for a single fabrication facility (fab) can run into billions of dollars. The government's policy to establish domestic fabs is a strategic move to localize this critical pricing component, which, if successful, can provide a more cost-effective and secure source of wafer supply for Indian ASIC designers, thereby mitigating pricing volatility driven by global capacity fluctuations.

• Supply Chain Analysis

The Indian ASIC supply chain is currently dominated by a "fabless" model, where Indian firms focus on the design stage while outsourcing manufacturing to global production hubs, primarily in East Asia, which include Taiwan and South Korea. This structure creates a critical dependency on global logistical networks and exposes Indian system builders to supply shocks and extended lead times, such as those experienced during the global chip shortage. The government's recent approval for the establishment of a fabrication facility in Dholera, Gujarat, and multiple Assembly, Testing, Marking and Packaging (ATMP) units, signifies a foundational step towards mitigating this vulnerability and creating a domestic "mines-to-market" supply chain. This localization effort is an imperative for strategic sectors like defense and aerospace, where supply chain trust is paramount.

Government Regulations

Key government regulations are the most significant factor shaping the Indian ASIC market growth.

In-Depth Segment Analysis

• By Application: Data Centers & Cloud Computing

The Data Centers & Cloud Computing segment is an acute demand center for highly customized ASICs, driven by the exponential growth in Artificial Intelligence (AI) and High-Performance Computing (HPC) workloads. The nature of these intense, parallel-processing tasks renders general-purpose computing inefficient for power consumption and speed. Consequently, hyperscale data center operators in India require specialized ASIC accelerators to execute deep learning models and manage massive data transfer rates. This need for bespoke silicon is evidenced by the development of ASIC-based Compute Express Link (CXL) memory solutions, which enable seamless, high-speed, low-latency communication between host processors and external memory to address the urgent need for memory-intensive applications. The strategic imperative is to optimize power efficiency and reduce the overall latency of cloud infrastructure, a requirement that only custom ASICs—designed specifically for these data center workloads—can fulfill, thereby propelling the demand for leading-edge node technologies.

• By End-User: Automotive

The Automotive segment's demand for ASICs is being fundamentally reshaped by the industry's shift towards active safety systems and increasing vehicle electrification. The complexity of Advanced Driver-Assistance Systems (ADAS) and the sophisticated battery management systems (BMS) in Electric Vehicles (EVs) necessitate highly reliable, high-performance, and custom-designed electronic control units (ECUs). Unlike consumer electronics, automotive applications demand ASICs that can operate under demanding specifications related to safety, thermal stability, and long-term operating conditions. The drive for greater in-vehicle connectivity and infotainment, combined with the criticality of functional safety (ISO 26262 compliance), dictates the use of highly integrated, semi-custom or full-custom ASICs to consolidate multiple functions onto a single chip. This transition is creating an enduring, high-value demand for robust ASICs to displace commodity integrated circuits, despite the industry's characteristic low-volume commitment compared to consumer electronics.

Competitive Environment and Analysis

The Indian ASIC market's competitive structure is bifurcated between global semiconductor giants that utilize India as a primary design and engineering center and a nascent but critical group of indigenous fabless design companies. Global players leverage India's skilled engineering talent for the complex digital, mixed-signal, and analog design phases of their worldwide ASIC portfolio.

• Intel

Intel, a global leader in semiconductor technology, maintains a significant strategic presence in India focused on engineering and design. The company’s ASIC strategy is primarily centered on its Custom Foundry Services, aiming to deliver specialized silicon solutions to hyperscale cloud providers and communications companies globally. While their strategic positioning remains centered on CPUs and data center solutions, their Indian R&D centers are integral to their global design-for-manufacturability and intellectual property (IP) development efforts.

• Broadcom

Broadcom’s strategic position in the Indian ecosystem is focused on its extensive portfolio of networking and infrastructure software. As a key player in the communications segment, Broadcom relies on its ASIC design expertise to create specialized silicon for high-bandwidth, high-throughput network applications. Their ASIC product strategy is built around delivering highly integrated, application-specific standard products (ASSPs) for major Original Equipment Manufacturers (OEMs), with their Indian operations contributing substantially to product definition and complex verification tasks.

Recent Market Developments

• September 2024: The central government approved a proposal by Kaynes Semicon to establish an Assembly, Testing, Marking and Packaging (ATMP) facility in Sanand, Gujarat, with an investment of Rs 3,307 crore. This is the fifth semiconductor unit approved under the India Semiconductor Mission (ISM) and marks a capacity addition in the critical post-fabrication value chain, which shortens the domestic ASIC realization cycle.
• February 2024: Prime Minister Narendra Modi announced the establishment of three new semiconductor units: a fabrication facility in the Dholera Special Investment Region (DSIR), Gujarat, and Outsourced Semiconductor Assembly and Test (OSAT) facilities in Morigaon, Assam, and Sanand, Gujarat. The Gujarat fab is a foundational capacity addition to the domestic supply chain, which will, upon completion, provide indigenous wafer manufacturing capability for Indian ASIC designers.

India Application-Specific Integrated Circuits (ASIC) Market Segmentation

• BY PROCESS TECHNOLOGY
  • Advanced Nodes
    • 3 nm and below
  • Leading-Edge Nodes
    • 5 nm
    • 7 nm
  • Mid-Range Nodes
    • 10 nm
    • 12 nm
    • 14 nm
    • 16 nm
  • Mature Nodes
    • 22 nm and above
• BY PRODUCT TYPE
  • Full-Custom ASIC
  • Semi-Custom ASIC
    • Standard Cell-Based ASIC
    • Gate-Array Based ASIC
  • Programmable ASIC
  • Others
• BY APPLICATION
  • Consumer Electronics
  • Automotive
  • Networking & Telecommunications
  • Data Centers & Cloud Computing
  • Healthcare
  • Industrial & IoT
  • Defense & Aerospace
  • Others

Companies Profiled

1. EXECUTIVE SUMMARY 

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE 

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. TECHNOLOGICAL OUTLOOK

5. INDIA APPLICATION-SPECIFIC INTEGRATED CIRCUITS (ASIC) MARKET BY PROCESS TECHNOLOGY

5.1. Introduction

5.2. Advanced Nodes

5.2.1. 3 nm and below

5.3. Leading-Edge Nodes

5.3.1. 5 nm

5.3.2. 7 nm

5.4. Mid-Range Nodes

5.4.1. 10 nm

5.4.2. 12 nm

5.4.3. 14 nm

5.4.4. 16 nm

5.5. Mature Nodes

5.5.1. 22 nm and above

6. INDIA APPLICATION-SPECIFIC INTEGRATED CIRCUITS (ASIC) MARKET BY PRODUCT TYPE

6.1. Introduction

6.2. Full-Custom ASIC

6.3. Semi-Custom ASIC

6.3.1. Standard Cell-Based ASIC

6.3.2. Gate-Array Based ASIC

6.4. Programmable ASIC

6.5. Others

7. INDIA APPLICATION-SPECIFIC INTEGRATED CIRCUITS (ASIC) MARKET BY APPLICATION

7.1. Introduction

7.2. Consumer Electronics

7.3. Automotive

7.4. Networking & Telecommunications

7.5. Data Centers & Cloud Computing

7.6. Healthcare

7.7. Industrial & IoT

7.8. Defense & Aerospace

7.9. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. Intel

9.2. AMD

9.3. Qualcomm

9.4. NVIDIA

9.5. Onsemi

9.6. NXP Semiconductors

9.7. Broadcom

9.8. Renesas Electronics

9.9. MosChip Technologies Ltd.

9.10. VVDN Technologies

9.11. Terminus Circuits

10. APPENDIX

10.1. Currency

10.2. Assumptions

10.3. Base and Forecast Years Timeline

10.4. Key benefits for the stakeholders

10.5. Research Methodology 

10.6. Abbreviations 

LIST OF FIGURES

LIST OF TABLES

Companies Profiled

Intel

AMD

Qualcomm

NVIDIA

Onsemi

NXP Semiconductors

Broadcom

Renesas Electronics

MosChip Technologies Ltd.

VVDN Technologies

Terminus Circuits

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