India's Semiconductor Consumption Sector Set for 13% CAGR Growth Until 2030
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Synopsis
India's semiconductor consumption market is poised for significant growth, with projections indicating a 13% CAGR through 2030, driven by government incentives and increased local production capabilities.
Key Takeaways
- India's semiconductor market is valued at $52 billion in 2024-25.
- Expected growth of 13% CAGR through 2030.
- Mobile and IT sectors comprise 70% of revenue.
- Government incentives exceed $21 billion.
- 'Make in India' initiative supports local production.
New Delhi, Feb 9 (NationPress) Fueled by the government's production-linked incentive (PLI) program, India's semiconductor consumption market, valued at $52 billion in 2024-25, is projected to experience a remarkable CAGR of 13% through 2030.
Key sectors such as automotive and industrial electronics offer substantial value addition opportunities. Mobile devices, IT, and industrial applications, which together account for nearly 70% of the market revenue, continue to be the main growth catalysts, as noted by Dr. V Veerappan, Chairman of the Indian Electronics and Semiconductor Association (IESA).
The semiconductor market in India is estimated to expand to $103.4 billion by 2030, contributing to the over $400 billion electronics market.
Key incentives from the government for FABs and OSATs, heightened R&D spending, and cooperative industry efforts are essential for advancing India's semiconductor landscape, with notable investment commitments exceeding $21 billion from IESA member firms in the past year, according to Ashok Chandak, President of IESA.
Emphasizing local semiconductor design and manufacturing while decreasing reliance on imports is vital for bolstering India's role in the global electronics arena and retaining economic benefits domestically.
A proficient workforce is fundamental to India's semiconductor ambitions. By prioritizing education and practical training, we can prepare the youth to spearhead the sector's evolution.
The 'Make in India' initiative has facilitated the domestic assembly of essential components and sub-assemblies, including chargers, battery packs, various types of mechanics, USB cables, and more advanced parts like Lithium-Ion Cells, speakers, microphones, display assemblies, and camera modules.
Establishing a semiconductor manufacturing foundation in the country has been a pivotal aspect of 'Make in India', a goal India has pursued for over six decades.
With the introduction of the India Semiconductor Mission and the approval of five major projects, including Micron, two projects by Tata Electronics, one by CG Power, and another by Keynes, a tangible semiconductor manufacturing base is being constructed within India.
Looking ahead, the emphasis will shift towards deeper engagement in the value chain, particularly in component and semiconductor production. This transition is part of a broader strategy to bolster self-reliance and position India as a prominent player in the global electronics market.
