By 2030, the Indian semiconductor sector is expected to generate more than $100 billion in sales

INN/New Delhi, @Infodeaofficial

According to a report on Wednesday, India’s semiconductor business is expected to generate over $100 billion in revenue by 2030, fuelled by government programs like the production-linked incentive (PLI) scheme and strong demand for the development of digital infrastructure across all industries. According to a survey by the India Electronics and Semiconductor Association (IESA) and Counterpoint Research, the semiconductor business is being led by the mobile handset, IT, and telecom segments, which account for over 75% of the industry’s revenues.

With the goal of fostering innovation and growth in India’s tech ecosystem, the government’s $9.1 billion “Semicon India” program intends to increase semiconductor manufacturing and workforce development. Thanks to the work of semiconductors that run in the background, India has produced one of the smartest populations in the world. Director of IESA Ved Prakash Mall stated, “Semiconductors have a profound commercial, strategic, and social impact.”

In industries like electronics production, digital transformation, aerospace, defence, renewable energy, Internet of Things, healthcare, automotive, and research, semiconductors are essential. India’s semiconductor market is expected to reach $100 billion by 2030, having grown at a compound annual growth rate of 13% from its $45 billion valuation in 2023.

As more people switch from feature phones to smartphones, the handset industry in India is driving the nation’s semiconductor industry and is essential to the country’s digital transformation, according to Tarun Pathak, Research Director at Counterpoint Research. “This rise is being propelled by rising social media usage, OTT platforms, cost-effectiveness, availability of data, and the development of the 5G network. In addition, he noted that pandemic-driven digitisation and government programs like “Digital India” and “Made in India” are helping India’s IT sector flourish.

This month, Ashwini Vaishnaw, the Union Minister for Electronics and IT, stated that India is on the verge of emerging as the global centre for semiconductors due to significant investment in this field in the nation. In a short period of time, investments totalling more than Rs 1.52 lakh crore (almost $18 billion) have been made in India’s semiconductor manufacturing sector, and numerous projects are already in the works.

Neil Shah, vice president of Counterpoint Research, stated that the telecom industry is essential to this growth because of the ongoing rollouts of 5G and fibre networks. Fixed wireless access (FWA) and other initiatives like BharatNet are essential, particularly in areas where fibre rollout is difficult. The requirement for high-speed connectivity will fuel India’s semiconductor demand, according to Shah.