India’s Semiconductor Consumption Market To Grow 13% Annually Through 2030

India’s semiconductor consumption market is set to experience strong growth, with a projected compound annual growth rate (CAGR) of 13% through 2030.

Valued at $52 billion in 2024-25, this market is expected to reach $103.4 billion by 2030, driving the country’s $400+ billion electronics industry.

India’s Key Drivers of Growth

The government’s Production-Linked Incentive (PLI) scheme plays a significant role in propelling this growth.

According to Dr. V. Veerappan, Chairman of the Indian Electronics and Semiconductor Association (IESA), sectors such as automotive and industrial electronics present considerable value-addition opportunities.

However, mobile handsets, IT, and industrial applications remain the primary growth drivers, contributing nearly 70% of the revenue.

Government Initiatives Powering the Sector

The government’s targeted incentives for semiconductor fabrication plants (FABs) and outsourced semiconductor assembly and test services (OSATs) are vital to advancing India’s semiconductor sector.

Increased research and development (R&D) investments and collaborative industry initiatives further support these efforts. Ashok Chandak, President of IESA, highlighted that IESA member companies have committed over $21 billion in investment in the past year, signaling a major boost to the industry.

India’s Reducing Import Dependency And Fostering Local Manufacturing

Focusing on local semiconductor design and manufacturing is crucial to India’s long-term strategy. By reducing import dependency, India aims to strengthen its position in the global electronics ecosystem and retain economic value within the country.

This push for local production is a critical element of India’s ‘Make in India’ initiative, which has already led to the domestic production of essential components such as chargers, battery packs, USB cables, and even complex items like lithium-ion cells, speakers, microphones, display assemblies, and camera modules.

Advancing Semiconductor Manufacturing In India

The establishment of a semiconductor manufacturing base in India is a central component of the ‘Make in India’ initiative, which has been a priority for the country for over six decades.

The recent launch of the India Semiconductor Mission marks a significant milestone, with five major semiconductor projects approved. These projects include initiatives from Micron, Tata Electronics, CG Power, and Keynes, all contributing to the creation of a real semiconductor manufacturing base in India.

A Future Focused On Value Chain Expansion

Looking ahead, India’s semiconductor industry will deepen its involvement in the value chain, particularly in producing components and semiconductors.

This shift aims to boost self-reliance and position India as a global electronics leader, driving substantial semiconductor sector growth with continued government and industry support.

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