The global semiconductor industry has climbed to become the third-most profitable major industrial sector worldwide, according to SEMI CEO Ajit Manocha.
India’s chip demand is currently doubling and is projected to reach $100-110 billion by 2030 — an estimate, not a confirmed figure.
India’s push dates back to the India Semiconductor Mission, launched in December 2021, as the country courts manufacturing investment.
Chips have quietly become one of the most lucrative businesses on the planet, and the man running the industry’s global trade body just put a number on it. Ajit Manocha, president and CEO of Semiconductor Equipment and Materials International (SEMI), said the semiconductor sector is now ranked number three globally in terms of industry-wide profitability — a real, current standing rather than a forecast. The claim lands amid what Manocha describes as surging demand for artificial intelligence chips and heightened geopolitical tensions around chip supply chains. On the growth side, India’s semiconductor demand is currently doubling and is projected — Manocha’s own estimate, not a locked-in figure — to hit $100-110 billion by 2030.
From Pandemic Lesson to Strategic Priority
Manocha traced the industry’s rise in importance back to Covid-era shortages, when demand for laptops and smartphones for telemedicine and home schooling spiked and exposed just how fragile global chip supply chains really were. Since then, semiconductors have moved beyond consumer electronics into drones, national security applications, automotive systems, and healthcare — including, Manocha noted, potential uses in gene editing and disease prevention. India’s entry point into this race was the India Semiconductor Mission, launched in December 2021, which Manocha credits with turning the country into an increasingly popular destination for chip manufacturing investment.
What This Means for Your Portfolio and Wallet
A sector ranked third globally in profitability is exactly the kind of structural tailwind long-term investors look for in semiconductor and AI-adjacent equity exposure, whether through direct chipmaker holdings or broader tech-sector funds. If India’s chip demand genuinely doubles on its way toward that projected $100-110 billion by 2030, expect ripple effects across global supply chains, equipment makers, and STEM-heavy labor markets — all of which can translate into earnings momentum for companies positioned early in that build-out. That said, projected demand figures are not guaranteed outcomes, and geopolitical tensions Manocha references can just as easily disrupt supply chains as accelerate them.
Strategic Positioning & Defense Ideas
For investors eyeing semiconductor exposure, standard diversification principles still apply: spreading bets across chip designers, equipment suppliers, and foundries rather than concentrating in a single name or single country’s supply chain can help cushion against geopolitical shocks. Maintaining a cash allocation for volatility and treating semiconductor exposure as one slice of a broader tech allocation, rather than a standalone bet, remains a reasonable educational approach. Disclaimer: This analysis is for educational and informational purposes only and should not be construed as financial or investment advice.
What to Watch Next
Watch for updates on India’s semiconductor manufacturing investments and STEM talent pipeline development, both of which Manocha flagged as prerequisites for the country capturing more of the projected $100-110 billion demand by 2030. For the full comments, check the original reporting from Business Standard.
