The Indian semiconductor market is expected to reach $64 billion by 2026

Source: International E-commerce Information Author: International E-commerce Information

    At the global level, the Indian government is committed to becoming a reliable partner in the semiconductor supply chain, introducing various incentive measures and plans to promote foreign investment in a wide range of fields.

    The semiconductor market in India is expected to surge to $64 billion by 2026, providing enormous opportunities for the global semiconductor manufacturing industry.

    According to the joint report of Counterpoint Technology Market Research and Indian Electronics and Semiconductors Association (IESA), the semiconductor market in India will be worth 22.7 billion dollars in 2019. The forecast for 2026 will be driven by domestic and export markets, with significant demand in the consumer electronics, telecommunications, IT hardware, and industrial sectors. India‘s "telecommunications stack" and industrial applications are expected to account for two-thirds of the total.

    Invest India, the National Investment Promotion and Facilitation Agency, the Indian Semiconductor Delegation (ISM), and Counterpoint Research recently held a series of online seminars with major industry spokespersons to discuss opportunities for establishing semiconductor manufacturing bases and diversifying supply chains as major destinations in India.

    The webinar covers four central themes, namely

    Cross industry and application semiconductor market;

    Government plans and incentives for foreign manufacturers;

    Talent availability and retraining plans;

    And the current infrastructure capabilities and support for semiconductor manufacturing.

    At the same time, components utilizing mature technology nodes (28 nanometers and higher) are expected to see significant opportunities in the short term as they support India‘s growing automotive and industrial sectors.

    In the short term, domestic demand for applications such as sensors, logic chips, and analog devices will bring huge opportunities, "said Tarun Pathak, Director of Research at Counterpoint." Local procurement has already taken place to a large extent. By 2022, it will account for approximately 10% of the entire market

    At the global level, the Indian government is committed to becoming a reliable partner in the semiconductor supply chain, introducing various incentive measures and plans to promote foreign investment in a wide range of fields.

    India is committed to becoming a reliable partner in the global supply chain, and we are achieving this goal by developing long-term policies, keeping in mind the next 25 years, "said Amitesh Kumar Sinha, CEO of ISM and Joint Secretary of the Indian Department of Electronic Information." Over 70% of semiconductor manufacturing project costs are incentivized by the central and state governments of India, with 50% being prepaid by the central government and the rest borne by the state government

    The Semiconductor India Program, which spent approximately $10 billion, funded 50% of the cost of semiconductor manufacturing projects, with 2.5% of the budget dedicated to research and development, skill development, and training.

    In addition to market size and financial support, the fourth area discussed in the webinar is the availability of existing infrastructure capabilities and skilled labor, material supply, and other parts of the local supply chain.

    The semiconductor laboratory (SCL), India‘s own manufacturing unit, provided an end-to-end case study, emphasizing the robustness of India‘s supply chain in terms of utilities, materials and talents.

    SCL has been an end-to-end manufacturer for 30 years, providing products for space and railway applications. Over the past 15 years, SCL has received uninterrupted power supply and stable, sustained supply of ultrapure water, highlighting India‘s readiness to support large-scale manufacturing of semiconductors, "said Dr. Manish Hooda, SCL‘s technology development director