India Semiconductor Market to Grow Due to Strategic Partnerships Through FY2031F

India Semiconductor market is experiencing unprecedented growth, fueled by higher penetration of smartphone technology such as Artificial Intelligence, Internet of Things (IoT), and Machine Learning (ML)

According to the Markets and Data Research report, “India Semiconductor Market Assessment, By Region, Opportunities and Forecast, FY2017-FY2031”, the India semiconductor market was estimated at USD 29.84 billion in FY2023 and is anticipated to reach USD 79.20 billion by FY2031, growing at a CAGR of 13.55% during the forecast period between FY2024 and FY2031. There is expected to be an increase in the demand for semiconductors due to the spending on various cybercities' development. India semiconductor market is being pushed by a substantial usage of semiconductors across numerous end-use applications such as electronics, industrial equipment, networking and communications, and data processing.

There is an increase in the demand for semiconductors in India due to widespread adoption of 5G technology and varied sectors undergoing digital transformation. It is because there are advanced connectivity requirements that depend on semiconductor components, especially concerning content consumption and cloud services. The move by the Indian government to promote manufacturing activities and to make the country a global manufacturing hub has led to more semiconductor adoption in the country.

India's strategic significance in the global semiconductor industry is highlighted by the establishment of research and development centers by major manufacturers such as Intel, AMD, and Qualcomm, which use the country's engineering talent. An important factor in bolstering the Indian semiconductor ecosystem in international cooperation. One example of a relationship to foster innovation and create strong semiconductor supply chains is the agreement on semiconductor collaboration between the European Union and India.

India’s semiconductor ecosystem is highly dependent on international cooperation. The European Union’s (EU) India Semiconductor Collaboration Agreement (SCCA) is a prime illustration of such collaborations aimed at building strong semiconductor supply chain structures and fostering innovation.

India is pursuing an ambitious goal of becoming a worldwide leader in the semiconductor sector. This will require international cooperation, significant investments, and strategic vision. Both the business and the government have made major efforts to foster an environment favorable to the semiconductor industry.

The Indian government is rapidly advancing technology through the usage of high-quality chips. Programs for skill development aiming to fill labor gaps in the design, production, and research of semiconductors are taking place in the country. Reforms that make doing business easier and provide incentives for research and development solidify India's position as a contender in the global semiconductor market. Demand for semiconductors is increased by the National Digital Communications Policy and international partnerships, which foster IoT innovation and connectedness.

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For instance, in February 2024, the Cabinet approved the establishment of the country's first three semiconductor facilities in India. Tata and Powerchip-Taiwan, whose facility will be in Dholera, Gujarat, will establish the first commercial semiconductor factory.

Spread through 119 pages, the "India Semiconductor Market" report includes an in-depth TOC, over 26 market data figures, latest market developments, key drivers and opportunities, and a thorough study of major company profiles. Moreover, the report offers strategic recommendations, pricing analysis, market share analysis, and value chain analysis in detail.

Key Takeaways:

1- The market expands its roots based on rapid technological advancement in almost every sector. Digitization, automation, and upgrades are anticipated to play a vital role in India’s growth trajectory.

2 - The availability of raw materials and strategic alliances with countries, such as Taiwan and China, are projected to expand manufacturing facilities in India.

3 - The advent of advanced technologies such as artificial intelligence, the Internet of Things (IoT), and machine learning are expected to fuel the regional market growth.

4 - Higher economic activities, technological startups, and extended research and development are anticipated to fuel the market growth.

India semiconductor market is segmented in the following categories:

By Type: Intrinsic and Extrinsic
By Node: 180 nm, 130 nm, 90 nm, 65 nm, 45/40 nm, 32/28 nm, and Less than 30
By Components: Memory Devices, Logic Devices, Analog IC, MPU, Discrete Power Devices, MCU Sensors, and Others
By End-User: Networking and Communication, Consumer Electronics, Automotive, Data Processing, Aerospace, Medical, Military and Defence, and Others
By Region: North, South, East, and West and Central

Based on end-users, the consumer electronics segment holds a decent share of the market. Smart home products such as smart TVs, speakers, and appliances that are connected to the Internet of Things (IoT) are driving the demand for semiconductors in India. The smart market in India is shifting towards more affordable but feature-rich models. It has led to an increase in smartphone adoption and consumption of semiconductors in the country. India's large population and rising disposable income, particularly among the tech-literate middle class, are driving consumer electronics and semiconductor demand. India's growing digital infrastructure and demand for high-tech gadgets position consumer electronics as a major contributor to the growth of the semiconductor market. Higher demand for smartphones in India post launch of 5G and 4G services along with the online education and digitized services are projected to fuel the market growth.  The government initiatives such as the PLI scheme and the ‘Make in India’ program are likely to further increase the production and consumption of consumer electronics products in India. Looking at the limited availability of semiconductors, the authorities are building new facilities to facilitate end users like consumer electronics.

Based on components, discrete power devices hold a decent share in the market. Discrete power semiconductors play a vital role in power devices and optical sensors, as well as in light emitters such as solid-state lasers. The discrete power semiconductor segment is in high demand due to its important role in electric vehicles (EVs) and government initiatives, such as FAME India, which invests heavily in the development of EV infrastructure. In the Indian market, discrete power semiconductor companies are constantly introducing new products to meet the changing needs of the market.

Initiatives such as the USD 30 billion-investment program of Aatmnirbhar Bharat, which aims to strengthen the semiconductor manufacturing industry in India, will continue to drive the demand of discrete power devices as it will reduce import dependency and lower component prices.

Major Companies Operating in India Semiconductor Market Include:

• Broadcom India Private Limited
• Micron Technology Operations India Llp
• NXP Semiconductors India Private Limited
• Infineon Technologies India Pvt. Ltd.
• SK Hynix Semiconductor India Pvt. Ltd.
• ASM Technologies Limited
• Moschip Technologies Ltd.
• Renesas Electronics India Pvt. Ltd.
• RIR Power Electronics Ltd.
• ROHM Semiconductor India Pvt. Ltd.

Companies in India Semiconductor market are actively involved in research and development (R&D), technological integration, and creating new solutions. For instance, in April 2024, NXP Semiconductor announced to increase its investments to expand or double its research and development (R&D) presence in India. The company will apply for the design-linked incentive (DLI) scheme, after the Indian government opens it up for multinational companies. It is already in touch with the Ministry of Electronics & Information Technology (MeitY) for the purpose. The company is looking at all possibilities to strengthen our R&D in this region to stay ahead of our competition.

“India Semiconductor Market Assessment, FY2017-FY2031”, evaluates the future growth potential of India semiconductor market and provides statistics and information on market size, structure, and future market growth. The report intends to provide innovative market intelligence and help decision-makers to make investment decisions for their organizations more strategically. Moreover, the report identifies and examines the emerging trends along with key drivers, challenges, and opportunities in India semiconductor market.

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