According to a report by India Electronics and Semiconductor Association (IESA) and Counterpoint Research, India’s semiconductor market is set to cross $100 billion in revenues by 2030, driven by government initiatives like production- linked incentive (PLI) scheme amid robust demand to build digital infrastructure across industries.
The report mentioned that mobile handset, IT and telecom segments are leading the semiconductor industry, contributing more than 75 per cent of its revenues. Moreover, government’s $9.1 billion ‘Semicon India’ programme aims to boost semiconductor manufacturing and workforce development, driving innovation and growth in India’s tech ecosystem.
As per the report, semiconductors play a crucial role in sectors such as electronics manufacturing, digital transformation, defense, aerospace, renewable energy, internet of things (loT), healthcare, automotive and research. India’s semiconductor market was valued at $ 45 billion in 2023 and is projected to rapidly grow at a compounded annual growth rate (CAGR) of 13 per cent to surpass $100 billion by 2030. Meanwhile, the handset sector is the leading force in India’s semiconductor industry, playing a crucial role in the country’s digital transformation as more consumers transition from feature phones to smartphones.
Further, according to Ashwini Vaishnaw, Union Minister of Electronics and Information Technology, Information and Broadcasting and Railways, India is moving towards becoming the next semiconductor hub for the world as big investment is happening in this sector. More than $18 billion worth of investments have come in India’s semiconductor manufacturing space in a short span of time and several projects are already in the pipeline.
Furthermore, as per Counterpoint Research, the telecom sector is central to this expansion with the ongoing 5G and fibre network rollouts.
