As India gradually strides toward becoming Aatmanirbhar, a new report on the chip component industry avouch for this growth. The report of India Electronics and Semiconductor Association (IESA) and Counterpoint Research predicts the cumulative value of the Indian semiconductor component industry to surpass $300 billion by 2026. With the local availability of semi-conductor components, the industry is expected to achieve major milestones in the years to come.
In 2021, more than 80% of the total semiconductor revenues in India came from IT, mobile, wearables and other industrial categories. India’s final equipment market stood at around $119 billion in revenue in 2021. It is estimated that during the five-year period (2021-2026), its Compound Annual Growth Rate (CAGR) will be 19%.
Tarun Pathak from Counterpoint Research said, “The gradual shift from feature phones to smartphones is increasing the proportion of advanced logic processors, memory, integrated controllers, sensors and other components. This will continue to drive up the value of semiconductor materials in smartphones, aided by the rise of wearables. As do smartwatches and TWS.”
While the PLI scheme of GoI has set aside $10 billion for the ecosystem and infrastructure building of semiconductor and display manufacturing electronics in India, Maharashtra recently grabbed a massive investment of Rs 2.06 lakh crore from the Vedanta Group-Foxconn alliance. It must be noted that Pune is expanding as a semiconductor chip and display fabrication industry. The research says that our import dependency will be significantly reduced with adequate development of a semiconductor ecosystem and some regulatory improvements.
IESA Prez Krishna Moorthy stated, “Before the end of this decade, there will be nothing that will not be touched by electronics and the ubiquitous ‘chip’. “Be it fighting carbon emissions, renewable energy, food safety, or healthcare, the semiconductor chip will be all-pervasive.”
Vice President of Counterpoint, Neil Shah believes that the next big boom for semiconductor components will come from all sectors. However, he added, “With the advent of 5G and fibre network rollout, the telecom sector will be a major catalyst in increasing the consumption of semiconductor components.” The research puts the growth in the Electronic System Design and Manufacturing (ESDM) industry at the centre of India’s overall growth.