India's Semiconductor Market Expected to Reach $103.4 Billion by 2030

According to Ashok Chandak, president of IESA, the semiconductor sector in India is being powered forward by government targeted incentives on fabrication facilities (Fabs) and outsourced semiconductor assembly and testing (OSATs), increased R&D investments, and collaborative industry initiatives.

India's semiconductor market is expected to reach $103.4 billion by 2030, driving the over $400 billion electronics market, the Indian Electronics and Semiconductor Association (IESA) said on Tuesday.

According to Ashok Chandak, president of IESA, the semiconductor sector in India is being powered forward by government targeted incentives on fabrication facilities (Fabs) and outsourced semiconductor assembly and testing (OSATs), increased R&D investments, and collaborative industry initiatives.

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The total investment commitments are more than $21 billion over the last year alone by IESA member companies.

At the two-day 'Utkarsh Odisha' – Make in Odisha Conclave 2025' here, the industry body also unveiled "India Semiconductor Market Report 2030" in the presence of Union Minister of Railways and Electronics and IT Ashwini Vaishnaw.
The report stated key recommendations toward achieving India's semiconductor aspirations. These included going beyond the current outlay of $10 billion in the 'Semicon India' program, as well as the DLI scheme, subject to modifications.".

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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 covers in-depth analysis of India's semiconductor market from 2023 to 2030 covering key industries like handsets, IT, telecom, consumer electronics, automotive, aerospace, and defence.

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It also offers 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.

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“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.

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Read also| India a Top Priority: Samsung’s TM Roh Pledges Increased Investment in R&D Centers

Read also| Microsoft CEO Satya Nadella Reflects on Being a Product of India-US Relations

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