Bhubaneswar, Jan 28: India’s semiconductor market is projected to grow to $103.4 billion by 2030, powering the over $400 billion electronics market, the Indian Electronics and Semiconductor Association (IESA) said on Tuesday.

The government’s targeted incentives for fabrication facilities (Fabs) and outsourced semiconductor assembly and testing (OSATs), increased R&D investments and collaborative industry initiatives are key to propelling India’s semiconductor sector forward, with significant investment commitments of over $21 billion by the IESA member companies in last one year, said Ashok Chandak, President of IESA.

At the two-day 'Utkarsh Odisha' – Make in Odisha Conclave 2025’ here, the industry body also launched “India Semiconductor Market Report 2030” in the presence of Union Minister of Railways and Electronics and IT Ashwini Vaishnaw.

The report highlighted key recommendations for achieving India's semiconductor ambitions, like continuing the ‘Semicon India’ programme beyond the initial outlay of $10 billion and DLI scheme with some modifications.

Other recommendations include setting a target of 25 per cent local value addition by 2025-26 and 40 per cent by 2030 in electronics manufacturing PLI benefits.

The report presents an in-depth analysis of India’s semiconductor market from 2023 to 2030, covering key industries such as handsets, IT, telecom, consumer electronics, automotive, aerospace, and defence.

It also provides actionable insights into critical components like processors, memory, connectivity, and power solutions, along with recommendations for increasing local sourcing.

Dr V Veerappan, Chairman of IESA, said that India’s semiconductor consumption market is valued at $52 billion in 2024-25 and is expected to grow at a robust CAGR of 13 per cent through 2030.

“Sectors like automotive and industrial electronics present significant value-addition opportunities. Mobile handsets, IT, and industrial applications, which together contribute nearly 70 per cent of the revenue, remain the primary growth drivers,” he informed.

The report also emphasised the need for innovative R&D to focus on list of high-priority products that cater to domestic and global markets.

--IANS

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