India’s semiconductor market set to cross $100 billion by 2030

India’s semiconductor market is projected to cross USD 100 billion in revenues by 2030, driven by government initiatives like the production-linked incentive (PLI) scheme and the push to build digital infrastructure across sectors.

The country’s semiconductor market was valued at USD 45 billion in 2023 and is projected to rapidly grow at a CAGR of 13% to surpass $100 billion by 2030, according to news agency IANS, which quoted a report by the India Electronics and Semiconductor Association (IESA) and Counterpoint Research.

Mobile handset, IT and telecom segments are leading the semiconductor industry, contributing over 75% of its revenues, the report says.

The government’s USD 9.1 billion ‘Semicon India’ program aims to boost semiconductor manufacturing and workforce development, driving innovation and growth in India’s tech ecosystem.

Experts at Counterpoint Research believe that the handset sector plays an important role in the growth of India’s semiconductor industry. 

“This growth is driven by the increased use of social media, OTT platforms, affordable prices, accessible data, and the expansion of the 5G network,” Tarun Pathak, Research Director at Counterpoint Research, said. “At the same time, India’s IT sector is thriving, supported by pandemic-driven digitalization and government initiatives like Digital India and Make in India.” 

Nearly USD 18 billion worth of investments have come in India’s semiconductor manufacturing space in the last few years, and several big projects are in the pipeline.

The telecom sector, with the ongoing 5G and fiber network rollouts, is expected to further drive growth.

“Projects like BharatNet and solutions such as fixed wireless access (FWA) are playing a pivotal role, especially in regions where fiber deployment is challenging,” Counterpoint Research Vice President Neil Shah said.