According to data by the India Cellular and Electronic Association (ICEA), India aims to reach $300 billion electronics production by financial year 2026 (FY26). This will trigger demand for semiconductors worth $90-$100 billion, largely driven by domestic mobile manufacturing.
The current electronics manufacturing at nearly $103 billion translates to a semiconductor requirement of $26-$31 billion, considering the industry average of 25 to 30 per cent of chip components in any electronics product’s bill of material (BOM).
According to the data, mobile phone production contribution in the overall electronics manufacturing jumped from 10 per cent to a whopping 44 per cent in the span of the last seven years.
The data added, in FY23, the total import of integrated circuits (ICs) reached $16.14 billion (out of which $12 billion was only for mobile phones). Processor chips, which are advanced chips specifically for high-end phones, may require some time before India can produce them at a competitive level.
As per data, the annual output could be approximately 18 million chipsets with a monthly output of around 1.5 million units (10-14 nm) of chipsets, assuming 15,000 wafers of 300mm at 70 per cent yield from a fab and considering the number of dies per wafer to be 148.
Therefore, the critical task before all the stakeholders is to translate the burgeoning semiconductors requirement into domestic production and reduce dependency on imports.
