Driven by key sectors like IT, automotive, and electronics, India’s semiconductor market is set to soar to $103.4 billion by 2030. R&D and local value addition remain as priorities.
India’s semiconductor market is projected to expand significantly, reaching $103.4 billion (₹9 trillion) by 2030, up from $52 billion (₹4.5 trillion) in 2024, according to a report by the India Electronics and Semiconductor Association (IESA). This growth is expected to be driven by sectors including mobile handsets, IT, telecom, consumer electronics, automotive, aerospace, and defence, with handsets, IT, and industrial applications accounting for nearly 70% of the market’s revenue.
IESA forecasts a compound annual growth rate (CAGR) of 13% for India’s semiconductor consumption market from 2024 to 2030, with sectors like automotive and industrial electronics offering substantial opportunities for value addition. The association also highlights the need for enhanced research and development (R&D) in areas such as smartphones, hearables, consumer electronics, and routers.
Ashok Chandak, president of IESA, emphasised the importance of government incentives for semiconductor fabrication plants (fabs) and outsourced semiconductor assembly and test (OSAT) facilities. In a Financial Express report, he also pointed to the need for increased R&D investment and industry collaboration, noting that IESA member companies have committed over $21 billion in investments over the past year.
The report outlines several recommendations to help India achieve its semiconductor goals, including extending the semiconductor incentive scheme beyond its initial $10 billion allocation and modifying the design-linked incentive (DLI) programme.
Additionally, IESA urges the government to focus on increasing local value addition in electronics manufacturing, setting targets of 25% by 2025-26 and 40% by 2030.
A unified scheme for product development, alongside workforce development initiatives, is also seen as critical for driving the next phase of growth in India’s semiconductor industry.
