New Delhi: India is positioning itself as a future global hub for semiconductor production, with strong investment and government backing. India’s semiconductor market is on track to surpass $100 billion by 2030, driven by increasing demand for digital infrastructure and government support like the production-linked incentive (PLI) scheme, according to a report by the India Electronics and Semiconductor Association (IESA) and Counterpoint Research.
Currently valued at $45 billion, the market is expected to grow at an annual rate of 13%. Key sectors like mobile handsets, IT, and telecom contribute more than 75% of the industry’s revenues.
The government’s $9.1 billion ‘Semicon India’ program is helping to boost domestic manufacturing and develop skilled talent. Investments worth about $18 billion have already come into the sector, with more projects on the way.
The telecom sector, particularly with the 5G rollout and rural connectivity projects like BharatNet, is expected to play a big role in driving demand for semiconductors. As more consumers switch to smartphones and access digital services, the need for semiconductors will keep growing.
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