Solid Growth in Indias Semiconductor Market

The semiconductor market in India is experiencing significant growth and development, driven by various factors and government initiatives. According to a study by the India Electronics & Semiconductor Association (IESA), India's semiconductor component industry is expected to expand to $300 billion in total net revenues by 2026, supported by initiatives like 'Make in India' and production-linked incentive (PLI) schemes [3]. The Indian government has been proactive in boosting the semiconductor manufacturing capacity. For instance, in December 2021, the government announced an approximately 10-billion-dollar production-linked incentive plan to promote semiconductor production in the country [3]. Additionally, the government has launched the 'Semicon' program with an outlay of Rs.76,000 crore to further promote semiconductor manufacturing [7]. The market is also benefiting from the increasing demand for consumer electronics, industrial tools, automotive products, and networking and communication products. The rapid growth in the work-from-home trend has significantly fostered the demand for PCs and laptops, which in turn has increased the demand for semiconductors [7]. Furthermore, the Indian EV market is projected to grow at a CAGR of 36%, driven by government policies aiming for high EV sales penetration by 2030. This growth in the EV sector is expected to boost the demand for discrete semiconductors, particularly for components like insulated gate bipolar transistors (IGBTs) used in EV power electronics systems [8]. Overall, the semiconductor market in India is poised for robust growth, supported by government initiatives, increasing demand for electronic devices, and the expanding EV market.

Semiconductor market in India.

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