India's semiconductor market to grow at 13%, reach $103 bn by 2030: IESA

The report calls for the continuation of the semiconductor incentive scheme beyond the initial $10 billion allocation to achieve India's manufacturing ambitions

India's semiconductor market is expected to grow from $52 billion (Rs 4.5 trillion) in 2024 to $103.4 billion (Rs 9 trillion) by 2030, according to a report by the India Electronics and Semiconductor Association (IESA).

 

The report, assessed by The Financial Express, attributes this growth to major sectors including mobile handsets, information technology (IT), telecommunications, consumer electronics, automotive, aerospace, and defence. Mobile handsets, IT, and industrial applications alone contribute to nearly 70 per cent of the semiconductor industry's revenue and are anticipated to remain the primary drivers of growth.

 

“India's semiconductor consumption market is projected to reach $52 billion in 2024-25 and is expected to grow at a strong compound annual growth rate (CAGR) of 13 per cent through to 2030. Sectors such as automotive and industrial electronics present considerable opportunities for added value,” commented V Veerappan, Chairman of IESA.

 

Focus on innovation & research

 

The report stresses the importance of innovative research and development (R&D) focused on high-priority products, including smartphones, hearables, consumer durables, and routers.

 

“The government's targeted incentives for fabs and OSATs, alongside increased R&D investments and collaborative industry initiatives, are crucial in advancing India’s semiconductor sector. IESA member companies have committed over $21 billion in investment in the past year,” said Ashok Chandak, President of IESA.

 

The report outlines several key recommendations to achieve India’s semiconductor ambitions, including the continuation of the semiconductor incentive scheme beyond the initial $10 billion allocation and revisions to the design-linked incentive scheme.

 

IESA outlined the need for the government to prioritise local value addition, setting a target of 25 per cent local value addition by 2025-26 and 40 per cent by 2030 in electronics manufacturing.

 

The report also suggested that a unified scheme for product development could drive high-impact semiconductor products. Moreover, workforce development is identified as an area that requires significant attention.