India’s semiconductor market is set for rapid expansion, projected to grow from US$ 52 billion in 2024 to US$ 103.4 billion by 2030. Key industries like mobile handsets, IT, telecom, and automotive will fuel this growth. A strong push for R&D, government incentives, and increased local value addition are expected to solidify India’s position as a global semiconductor hub.
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India’s semiconductor market is set to grow from US$ 52 billion (₹4.5 lakh crore) in 2024 to US$ 103.4 billion (₹9 lakh crore) by 2030, according to a report by the India Electronics and Semiconductor Association (IESA). This expansion will be driven by key sectors such as mobile handsets, IT, telecom, consumer electronics, automotive, aerospace, and defence. Mobile handsets, IT, and industrial applications contribute nearly 70% of the industry’s revenue and will continue to be the main growth drivers.
IESA Chairman V Veerappan highlighted that India’s semiconductor consumption is projected to grow at a CAGR of 13%, with significant opportunities in automotive and industrial electronics. The report emphasizes the need for enhanced research and development (R&D) in high-priority areas like smartphones, hearables, consumer durables, and routers.
Government incentives and industry collaborations play a crucial role in the sector’s growth. IESA President Ashok Chandak noted that targeted incentives for fabrication plants (fabs) and outsourced semiconductor assembly and testing (OSAT) facilities, alongside increased R&D investments, have attracted commitments exceeding US$ 21 billion from IESA member companies in the past year.
The report recommends extending the semiconductor incentive scheme beyond its initial $10 billion allocation and refining the design-linked incentive scheme. It also urges the government to focus on local value addition, setting targets of 25% by 2025-26 and 40% by 2030 in electronics manufacturing.
A unified product development scheme could drive high-impact semiconductor innovations. Additionally, workforce development remains a priority to ensure a skilled talent pool supports India’s semiconductor ambitions. These measures, if implemented effectively, could position India as a global semiconductor hub.
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