India can only supply 9% of domestic IC market

Author: EIS Release Date: Apr 25, 2022

India’s domestic semiconductor industry can only supply 9% of its $27 billion local market, says a report by the Indian Electronic and Semiconductors Association (IESA).

 

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The Indian semiconductor market is expected to have a 16% CAGR of from 2019 to 2026 to reach $64 billion in 2026, representing 22 per cent of the total end-equipment revenues, according to IESA.

 

80% of the market demand comes from mobile phones, smart wearables, IT, and other industrial components, says IESA.

 

 

The telecom segment of the Indian chip  market is worth over $2 billion and it is expected to have a CAGR of 34% for the period 2021-2026.

 

 

 

The report sees the local auto industry as a big opportunity.

 

“The industry, comprising commercial and passenger vehicles, ranks fifth largest in the world,” says the IESA report, “it is expected to become third-largest by volume by 2026 after China and the US. Ongoing efforts to embrace cleaner and greener vehicles will provide an impetus to the automobile industry to adopt advanced technologies,”

 

The report goes on to assess India’s potential impact on the world market. “There is a potential opportunity for India to serve up to $85 billion – $100 billion of the $550 billion – $600 billion annual global opportunity by 2030,” it says, “this is nearly 17 per cent of the global market requirement.”

 

Last year, a $10 billion incentive scheme to get chip companies to manufacture in India failed to attract a significant IDM.