Indian engineering services firms' semicon outsourcing market share set to double

Indian engineering service providers are set to double their share of the global semiconductor outsourcing market by 2030, as chipmakers ramp up spending on AI, autonomous systems and next generation hardware, according to a new study by consulting firm NEOVAY Global.

The total outsourcing addressable market in semiconductor outsourcing is estimated to be around $8 billion in 2025, of which Indian providers currently earn roughly $1.4 billion, according to NEOVAY's estimates. This is expected to rise to $3-3.5 billion by 2030 as the overall opportunity expands to $15-16 billion.

This is in comparison to the global semiconductor market, now valued at around $700 billion, which is projected to reach $1 trillion by the end of the decade. "Interestingly, the semicon outsourcing pie is doubling in value, ahead of the market itself as the need for semiconductor designing grows in the ecosystem," said Praveen Bhadada, chief executive & managing director at NEOVAY Global.


While demand for AI-led systems is at the core of why semiconductor chips are needed, the sustained investments in research and development (R&D) by top semiconductor companies contribute to the growth of the outsourcing business in semiconductor design, testing and system validation areas.