Synopsis
India's semiconductor market is on course to reach $103.4 billion by 2030, bolstering the $400 billion electronics industry. Government incentives, increased R&D, and industry collaboration are vital for sector growth, with $21 billion in investments committed recently, according to the IESA.Key Takeaways
- Projected market growth to $103.4 billion by 2030.
- Government incentives for Fabs and OSATs play a crucial role.
- Over $21 billion committed in investments by IESA members.
- Recommendations for local value addition by 2025-26 and 2030.
- Focus on high-priority products for domestic and global markets.
Bhubaneswar, Jan 28 (NationPress) India's semiconductor sector is anticipated to reach a value of $103.4 billion by 2030, significantly contributing to the over $400 billion electronics industry, as reported by the Indian Electronics and Semiconductor Association (IESA) on Tuesday.
The government's strategic incentives for semiconductor fabrication facilities (Fabs) and outsourced semiconductor assembly and testing (OSATs), alongside enhanced R&D investments and collaborative efforts from the industry, are crucial to advancing India's semiconductor landscape. IESA's President, Ashok Chandak, noted that member companies have committed more than $21 billion in investments over the past year.
During the two-day 'Utkarsh Odisha – Make in Odisha Conclave 2025,' the industry body unveiled the 'India Semiconductor Market Report 2030' in the presence of Union Minister of Railways and Electronics and IT, Ashwini Vaishnaw.
This report outlines essential recommendations to fulfill India's semiconductor aspirations, including extending the ‘Semicon India’ initiative beyond its initial $10 billion funding and modifying the DLI scheme.
Additional suggestions entail setting a goal of 25 percent local value addition by 2025-26, escalating to 40 percent by 2030 within electronics manufacturing PLI benefits.
The report offers a comprehensive analysis of India's semiconductor market from 2023 to 2030, examining key sectors such as handsets, IT, telecommunications, consumer electronics, automotive, aerospace, and defense.
It also includes valuable insights regarding essential components like processors, memory, connectivity, and power solutions, alongside suggestions for boosting local sourcing.
According to Dr. V Veerappan, Chairman of IESA, India's semiconductor consumption market is projected to be valued at $52 billion in 2024-25, with an expected robust CAGR of 13 percent until 2030.
“Industries such as automotive and industrial electronics showcase significant value addition potential. Mobile handsets, IT, and industrial applications, which together account for nearly 70 percent of the revenue, will continue to drive growth,” he stated.
The report further accentuates the necessity for innovative R&D to concentrate on a targeted list of high-priority products that cater to both domestic and international markets.
