By Anjali Sharma
WASHINGTON – India’s semiconductor consumption market on Tuesday which is valued at $52 billion in 2024-25 is expected to grow at a robust CAGR of 13% through 2030, which is driven by the government’s production-linked incentive scheme.
Sectors like automotive and industrial electronics present significant value-addition opportunities.
According to Dr V Veerappan, Chairman of the Indian Electronics and Semiconductor Association said that mobile handsets, IT, and industrial applications, which together contribute nearly 70 per cent of the revenue, remain the primary growth drivers.
India’s semiconductor market is projected to grow to $103.4 billion by 2030, powering the $400+ billion electronics market.
According to Ashok Chandak, President, IESA 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.
It focused 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.
It noted that with the launch of the India Semiconductor Mission and the five major projects which have been approved, started 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.
The focus will intensify on advancing deeper into the value chain, in the production of components and semiconductors.
The shift is part of a broader strategy to enhance self-reliance and establish India as a leading player in the global electronics market, it added.
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