India’S Semiconductor Consumption Market To Grow At A 13 Pc CAGR Through 2030

(MENAFN- IANS) New Delhi, Feb 9 (IANS) Driven by the government's production-linked incentive (PLI) scheme, India's Semiconductor consumption market which is valued at $52 billion in 2024-25 is expected to grow at a robust CAGR of 13 per cent through 2030.

Sectors like automotive and industrial Electronics present significant value-addition opportunities. Mobile handsets, IT, and industrial applications, which together contribute nearly 70 per cent of the revenue, remain the primary growth drivers, according to Dr V Veerappan, Chairman of the Indian Electronics and Semiconductor Association (IESA).

India's semiconductor market is projected to grow to $103.4 billion by 2030, powering the $400+ billion electronics market.

The government's targeted incentives for FABs and OSATs, increased R&D investments, and collaborative industry initiatives are key to propelling India's semiconductor sector forward, with significant projects Investment commitment of over $21 billion by IESA member companies in last one year, according to Ashok Chandak, President, IESA.

Focusing on local semiconductor design and manufacturing while reducing import dependency is crucial to strengthening India's position in the global electronics ecosystem and retaining economic value in the country.

A skilled workforce is the backbone of India's semiconductor aspirations. By investing in education and hands-on training, we can equip the youth to lead the sector's transformation.

The 'Make in India' initiative has enabled the domestic production of critical components and sub-assemblies such as chargers, battery packs, mechanics of all types, USB cables, and more complex components like Lithium Ion Cells, speaker and microphones, display assemblies and camera modules.

The setting up a semiconductor manufacturing base in the country has been an important part of 'Make in India', which India has been attempting to achieve for over six decades.

With the launch of the India Semiconductor Mission and the five major projects which have been approved, starting with Micron, the two projects by Tata Electronics, the one project by CG Power, and the last project by Keynes, a real manufacturing base of semiconductors in this country is being established in India.

Looking forward, the focus will intensify on advancing deeper into the value chain, particularly in the production of components and semiconductors. This shift is part of a broader strategy to enhance self-reliance and establish India as a leading player in the global electronics market.

-IANS

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