India is preparing to secure an 8-10% share of the global semiconductor manufacturing supply chain market, projected to grow from $240 billion in 2022 to $420 billion by 2030.
This would equate to an opportunity of up to $40 billion by 2030, as the country strengthens its position in the global supply chain and establishes itself as a key player in this critical sector.
Government Support Fuels Sector Growth
The Indian government has played a critical role in boosting investments in semiconductor fabrication and assembly, packaging, and testing (OSAT) industries.
With policies designed to attract both domestic and foreign investments, India is fostering an environment conducive to technological growth and global integration.
These efforts have not only raised awareness about the importance of semiconductor supply chains but have also attracted increased interest from domestic suppliers eager to tap into this lucrative market.
Additionally, various government incentives, such as the Production-Linked Incentive (PLI) scheme, have been pivotal in attracting global semiconductor firms to set up operations in India, further accelerating the sector’s growth.
Key Factors Driving Growth
To fully capitalize on these immense opportunities, India needs to focus on targeted investments in critical areas that will help secure its place in the global semiconductor market:
Capital subsidies: Offering capital subsidies and other incentives to attract investments in key supply chain sectors, including semiconductor fabrication and material processing.
These initiatives will provide the necessary financial support for building infrastructure and upgrading facilities.
Establishing stronger government-to-government relations with leading semiconductor nations to streamline exports, reduce trade barriers, and integrate India’s manufacturing capabilities into global supply chains.
This will improve market access and further boost India’s competitiveness in the global arena.
Skilled workforce development: Focusing on developing a skilled workforce through advanced training programs and research and development (R&D) incentives to meet the growing demand for talent in semiconductor manufacturing.
The availability of a highly skilled labor force will help support the country’s position in the global supply chain and improve productivity within the sector.
As India’s semiconductor manufacturing landscape continues to evolve, it is expected to create significant job opportunities across various sectors, including design, manufacturing, supply chain management, and technical support services.
Furthermore, as its infrastructure grows and technological capabilities advance, India’s domestic suppliers are positioning themselves to serve critical segments such as equipment manufacturing, chemicals, gases, packaging, testing, and logistics services.
By building on this domestic capability, India can reduce its reliance on imports, further boosting the nation’s economic resilience.
A Bright Future For India’s Semiconductor Industry
With continued government support, favorable policies, and a robust domestic supply chain, India is set to emerge as a major player in the global semiconductor market.
As the industry evolves, it will not only play a key role in the country’s technological advancement but will also have far-reaching economic impacts, such as increasing exports, creating millions of jobs, and enhancing India’s global competitiveness.
The government’s push to foster innovation, research, and development, along with a growing local supply chain, ensures that India is well on its way to becoming a semiconductor manufacturing powerhouse.
This transition promises to propel India into the forefront of the global electronics supply chain, contributing to long-term economic growth and technological self-sufficiency.
In the years to come, India’s semiconductor industry will not only help drive the country’s economic development but also position it as a critical player in shaping the future of the global electronics ecosystem.
Also Read: Electronics Sector On Track For Global Dominance: MeitY Secretary
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