India’s Semiconductor Market Set to Reach $103.4 Billion by 2030: IESA Report

Bhubaneswar: India’s semiconductor market is on track to achieve a valuation of $103.4 billion by 2030, driven by the expansion of the country’s $400 billion electronics market, according to the Indian Electronics and Semiconductor Association (IESA). This projection was shared at the ‘Utkarsh Odisha: Make in Odisha Conclave 2025,’ where the IESA also unveiled its “India Semiconductor Market Report 2030” in the presence of Union Minister for Railways and Electronics and IT, Ashwini Vaishnaw.

The report outlines key strategies to elevate India’s semiconductor ecosystem, emphasizing the continuation of the ‘Semicon India’ program beyond the initial $10 billion outlay and modifications to the Design Linked Incentive (DLI) scheme. The recommendations also target achieving 25% local value addition by 2025-26 and 40% by 2030 in electronics manufacturing under PLI benefits.

IESA President Ashok Chandak highlighted the government’s targeted incentives for fabrication facilities (Fabs) and outsourced semiconductor assembly and testing (OSATs) as crucial drivers for the sector. “With increased R&D investments, collaborative industry initiatives, and significant commitments of over $21 billion by IESA member companies in the past year, India’s semiconductor sector is poised for unprecedented growth,” Chandak said.

The report presents a comprehensive analysis of India’s semiconductor market from 2023 to 2030, covering key industries such as handsets, IT, telecom, consumer electronics, automotive, aerospace, and defence. It also provides actionable insights into critical components like processors, memory, connectivity, and power solutions, along with strategies to enhance local sourcing.

Dr. V Veerappan, Chairman of IESA, noted that India’s semiconductor consumption market is valued at $52 billion for 2024-25, with an anticipated compound annual growth rate (CAGR) of 13% through 2030. “Mobile handsets, IT, and industrial applications contribute nearly 70% of the revenue, while sectors like automotive and industrial electronics present significant value-addition opportunities,” he added.

The report underscores the need for innovative R&D focused on high-priority products catering to both domestic and global markets. It also highlights the importance of fostering partnerships between industry and academia to develop cutting-edge solutions.

Minister Vaishnaw praised the IESA’s efforts, reiterating India’s ambition to become a global semiconductor hub. “India’s strategic initiatives and growing talent pool will play a key role in shaping the future of the semiconductor industry,” he remarked.