CIOInsider India Magazine

The India Electronics and Semiconductor Association (IESA) estimates that by 2030, the country's semiconductor market will have grown from $52 billion (Rs. 4.5 trillion) in 2024 to $103.4 billion (Rs. 9 trillion).

The report cites major industries, including consumer electronics, mobile phones, information technology (IT), telecommunications, automotive, aerospace, and defense. Nearly 70 percent of the semiconductor industry's income comes from mobile phones, IT, and industrial applications alone, and these sectors are expected to continue to be the main growth drivers. The report makes several important suggestions to help India realize its goals in the semiconductor industry, such as extending the semiconductor incentive program beyond the original $10 billion allotment and changing the design-linked reward program.

“The government's targeted incentives for fabs and OSATs, alongside increased R&D investments and collaborative industry initiatives, are crucial in advancing India’s semiconductor sector. IESA member companies have committed over $21 billion in investment in the past year,” said Ashok Chandak, President of IESA. By establishing a goal of 25 percent local value addition by 2025 - 2026 and 40 percent by 2030 in electronics manufacturing, IESA demonstrated the necessity for the government to give local value addition top priority.