The Indian semiconductor market, crucial for modern technology from smartphones to solar panels, is poised for robust growth, expanding more than two-fold to an estimated Rs 9.6 lakh crore by 2030. This projection was detailed in a recent CES 2023 event in Las Vegas, indicating significant momentum in the country’s high-tech sectors.
According to the information released during the event, the Indian semiconductor market, valued at Rs 1.13 lakh crore in 2023, could exceed Rs 3.8 lakh crore by 2026 before reaching the predicted figure by the end of the decade. The forecast, supported by international and domestic industry dynamics, paints a promising picture of technological advancement and increased self-reliance in semiconductor production.
This surge is propelled by several factors. As global demand for electronics continues, combined with India’s strategic initiatives like the “Make in India” campaign, there has been a corresponding increase in local manufacturing requirements. Additionally, governmental policies aimed at bolstering the semiconductor industry, including substantial financial incentives, are significantly heightening investor interest and confidence.
Investments have proliferated with these incentives. A joint venture noted at the CES event, involving Vedanta and Foxconn, plans to establish a semiconductor and display production facility in Gujarat, with an investment of around $19.5 billion (approximately Rs 1.54 lakh crore). This emphasizes not only the growth potential but also the existing competence and confidence in India’s technological manufacturing capabilities.
Such initiatives are anticipated to alleviate global supply chain constraints, a critical issue highlighted during recent global disruptions caused by the pandemic. By increasing domestic production, India not only aims to meet internal demands more efficiently but also positions itself as a pivotal player in the global supply market, potentially stabilizing regional supply chains.
India’s intention to build at least two semiconductor fabrication units spells a considerable move towards semiconductor self-sufficiency. It reduces the reliance on imports, predominantly from East Asian markets, which currently dominate the semiconductor industry. This shift could have wide-reaching implications, not only for electronic markets but for industries reliant on these critical components, including automotive and telecommunications.
Moreover, the development of local talent and expertise in semiconductor production and design has been identified as a key area of focus. Educational programs and partnerships with global technology leaders could enrich the skill sets of Indian engineers and designers, aligning with the needs of this high-growth industry.
In addition to economic impacts, the environmental considerations of boosting semiconductor manufacturing capacities are also under scrutiny. While the industry is resource-intensive, advancements in technology and processes could potentially enhance efficiency levels and reduce waste, contributing to more environmentally sustainable practices.
Overall, the expectation of a more than 100% growth in India’s semiconductor market by 2030, as reported by the Economic Times, plots a course for the country not only as a consumer but as an innovator and leader in the critical global market of semiconductors. This journey, laden with both opportunities and challenges, could redefine India’s industrial and economic landscape in the forthcoming years.
