Indian Electronics and Semiconductor Association (IESA) has released its India Semiconductor Market Report 2030 during the Utkarsha Odisha Conclave signalling India’s continued momentum toward becoming a global hub for semiconductor innovation and manufacturing. The report presented an in-depth analysis of India’s semiconductor market from 2023-2030, covering key industries such as handsets, IT, telecom, consumer electronics, automotive, aerospace, and defence. It also provided actionable insights into critical components like processors, memory, connectivity, and power solutions, along with recommendations for increasing local sourcing.
The report highlighted key recommendations for achieving India’s semiconductor ambitions including:
- Continuing the Semicon India Program beyond the initial outlay of $ 10 billion and design-link incentive (DLI) scheme with some modifications.
- Prioritising local value addition- Setting a target of 25 per cent local value addition by 2025-2026 and 40 per cent by 2030 in electronics manufacturing product-linked incentive (PLI) benefits.
- High-priority chips: IESA report listed strategic products that align with India’s strengths and global market needs, particularly to support upcoming fabrications (FABs) and outsourced semiconductor assembly and test (OSATs) units and tap business potential.
- Unified schemes for product development- Consolidating multiple initiatives under a unified product creation initiative to drive high-impact semiconductor products.
- Workforce development- Enhancing collaboration between industries and universities to implement skill-building programs for a future-ready semiconductor workforce.
Commenting on the report, Ashok Chandak, president, IESA, said, “India’s semiconductor market is projected to grow to $ 103.4 billion by 2030, powering more than $ 400 billion electronics market. The government’s targeted incentives for FABs and OSATs, increased research and development (R&D) investments, and collaborative industry initiatives are key to propelling India’s semiconductor sector forward.” He also added that significant projects investment commitment is over $ 21 billion by IESA member companies in last one year.
Meanwhile, Dr V Veerappan, chairman, IESA, said, “India’s semiconductor consumption market is valued at $ 52 billion in 2024-2025 and 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.”
Further, Chandak said, “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.”
The report also emphasised the need for innovative R&D to focus on list of high priority products that cater to domestic and global markets. “This will not only enhance our market relevance but also establish us as a leader on the global stage,” Chandak explained.
Dr Veerappan concluded, “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.”
