Two-thirds of the semiconductor market size would be driven by India’s telecom stack and industrial applications.
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India’s semiconductor market is anticipated to grow to $64 billion by 2026, according to a report jointly published by Counterpoint Research and the India Electronics & Semiconductor Association (IESA). The report also stated that the expansion would be because of high demand from the consumer electronics, telecom, and IT hardware sectors.
The report also stated that two-thirds of the semiconductor market size would be driven by India’s telecom stack and industrial applications. The country’s semiconductor market was valued at $22.7 billion in 2019.
Tarun Pathak, research director at Counterpoint, stated that there is a significant opportunity in the short term from domestic demand for applications such as sensors, logic chips, and analog devices.
The Indian government has announced a scheme worth Rs 76,000 crore to incentivize the development of the semiconductor and display manufacturing ecosystem in December 2021. The incentive was further improved in September 2021, offering fiscal support at 50% of the project cost for setting up a semiconductor fabrication facility. This support was made uniform across all technology nodes, unlike the previous variation of 30-50% for different units.
Additionally, Deloitte predicts that the semiconductor industry will continue to grow in India, with the country becoming a significant contributor to the global semiconductor value chain, reaching a market size of $85 billion by 2030.
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