Diversify into semiconductors and electronics, Indian IT firms seek stability amid industry uncertainty and global headwinds.
India’s leading IT companies are diversifying into semiconductors and electronics to offset growth challenges in their traditional business lines. Experts say IT majors can leverage their strong research and development capabilities to gain a foothold in the global semiconductor value chain.
Wipro recently acquired a stake in Harman’s Digital Transformation Solutions business for $375 million, while Infosys expanded into chip design by acquiring semiconductor design firm InSemi last year. Mid-sized IT player Cyient has launched a fully owned semiconductor subsidiary, and L&T Technology Services has stepped into the space through acquisitions.
Tata Consultancy Services has unveiled a chiplet-based system engineering service aimed at supporting semiconductor companies. Tata Electronics, meanwhile, is preparing to roll out its first domestically manufactured semiconductor chips by 2026 at its facility in Gujarat.
Industry analysts highlight that this pivot serves as a de-risking strategy for IT firms, especially when global uncertainties cloud growth. India’s semiconductor market, currently valued at around $45–50 billion, is projected to reach $100 billion by 2030, presenting a significant opportunity.
With tariffs on imports persisting and global demand for chips increasing, India is positioning itself as a hub for chip manufacturing and design. This push could strengthen the country’s semiconductor ecosystem while enabling IT service providers to secure long-term growth.
