According to a study conducted by the India Electronics Semiconductor Association (IESA) with the Counterpoint Research team, the total revenue of India’s semiconductor component market is estimated to hit $300 billion between 2021 – 2026.
The analysis, titled “India Semiconductor Market Report, 2019-2026,” predicts that the country would overtake the U.S. as the 2nd largest marketplace for semiconductors due to rising consumption in a wide range of end-use sectors.
This study analyzes the international markets for semiconductor components in India. That comes with a particular emphasis on the bottom-up modeling of units. Which includes the revenue supply for semiconductor chips encompassing the complete Bill of Material (BoM) of various end-device as well as machinery categories in 7 main sectors. Such are –
- Technology (including mobile and wearable devices),
- In the auto industry,
- Manufacturing,
- Telecommunications,
- Aerospace,
- Defense,
- Consumer electronics.
To increase domestic manufacturing and sourcing, the paper provides extensive proposals, relevant legislation, as well as a framework for establishing a robust domestic semiconductor ecosystem.
This research highlights data showing that the information technology (IT), industrial, and mobile, and wearables markets account for approximately 80% of global semiconductor component profits.
In addition, 7% of earnings come from the consumer electronics sector, 5% from telecon, 5% from the automotive sector, & 3% from the aerospace & defense sector.
The research added that despite the country’s rise to prominence as a consumer of electronics and semiconductor elements, the country’s economic prospects remain dim because the vast majority of these components must be imported.
Based on the numbers, it seems like we’re only covering 9 percent of our semiconductor needs at home right now. The research continued, nevertheless, saying, “Government’s ambition under ‘Make in India,’ ‘Atmanirbhar Bharat,’ & ‘PLI scheme,’ together with its relentless pursuit towards revitalizing the infrastructure via the digital technology adoption will encourage domestic production of semiconductor chips.”
According to the study’s authors, the share of domestically produced semiconductors in the mobile and wearables sector, which was 4% in 2021, is projected to rise to 9% by 2026. The report highlighted similar increases across the board.
