India’s semiconductor market is projected to witness a significant growth from $52 billion in 2024 to $103.4 billion by 2030, a report by the India Electronics and Semiconductor Association stated. As evaluated by The Financial Express, the growth will primarily be driven by key sectors such as IT, Mobile handsets, automotive, industrial electronics, etc.

According to reports, mobile handsets, Information Technology, and industrial applications together account for about 70% of the semiconductor industry’s revenue. The Chairman of IESA, V Veerappan noted that the market is likely to grow at a solid 13 percent CAGR (Compound Annual Growth Rate) by 2030.

The report also mentions the critical role of innovative research and development behind high-end products such as smartphones audio devices, routers, and consumer durables. Ashok Chandak, President of IESA, stated, “Govt’s focused incentives for fabs and OSATs, coupled with increased R&D investments and collaborative industry initiatives, are important for the growth of the Indian semiconductor sector. IESA member companies have pledged over $21 billion in investment in 2023.”

The report also highlighted various key recommendations to help India achieve its aim for the semiconductor sector. This includes the semiconductor incentive scheme in addition to the initial $10 billion allocation and modifications to the design-linked incentive scheme. Meanwhile, IESA called for the government to prioritise local value addition and set a 25% local value addition target by 2026 and 40% until 2030 in electronics manufacturing.