India's semiconductor market to touch $64 bn by 2026
Technology

India's semiconductor market to touch $64 bn by 2026

According to a new report, India's semiconductor market will reach $64 billion by 2026, nearly tripling its current size of $22.7 billion. The telecom stack and industrial applications in the country will account for two-thirds of the total market share.

According to a report by Counterpoint Research and the India Electronics & Semiconductor Association (IESA), domestic and export markets will drive semiconductor chip manufacturing in India, with significant demand from the consumer electronics, telecom, IT hardware, and industrial sectors.

"In the short term, there is a huge opportunity being driven by domestic demand across applications like sensors, logic chips, and analogue devices," Tarun Pathak, research director at Counterpoint, said.

He went on to say that local sourcing is already significant, accounting for 10% of the overall market in 2022.

"India is committed to becoming a reliable partner in global supply chains," said Amitesh Kumar Sinha, CEO of India Semiconductor Mission and joint secretary of the Ministry of Electronics and Information Technology, "and we are working towards that by framing long-term policies with the next 25 years in mind."

The Centre funds 50% of the costs of semiconductor manufacturing projects under its Semicon India Programme, which has an outlay of approximately $10 billion, with 2.5 percent of the budget earmarked for research and development, skill development, and training.

"More than 70% of the project costs for semiconductor manufacturing in India are incentivized by the Centre and state governments, with the Centre funding 50% upfront and the state governments covering the rest," Sinha added.

The Centre is also attempting to entice major US corporations to locate their chip manufacturing facilities in India. Micron is planning to open a plant in India in the coming months. According to Business Standard, IT and Communications Minister Ashwini Vaishnaw met with top executives from US companies in San Francisco on Wednesday.

"The meetings were very fruitful, and the message was clear: India is without a doubt the next big destination for everyone in semiconductors to invest in," Vaishnaw told Business Standard over the phone.

Over the next two days, Vaishnaw plans to meet more executives from Intel, Micron, Western Digital, Applied Materials, HP, Analog Devices, Lam Research, and AMD, among others.

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According to a new report, India's semiconductor market will reach $64 billion by 2026, nearly tripling its current size of $22.7 billion. The telecom stack and industrial applications in the country will account for two-thirds of the total market share. According to a report by Counterpoint Research and the India Electronics & Semiconductor Association (IESA), domestic and export markets will drive semiconductor chip manufacturing in India, with significant demand from the consumer electronics, telecom, IT hardware, and industrial sectors. In the short term, there is a huge opportunity being driven by domestic demand across applications like sensors, logic chips, and analogue devices, Tarun Pathak, research director at Counterpoint, said. He went on to say that local sourcing is already significant, accounting for 10% of the overall market in 2022. India is committed to becoming a reliable partner in global supply chains, said Amitesh Kumar Sinha, CEO of India Semiconductor Mission and joint secretary of the Ministry of Electronics and Information Technology, and we are working towards that by framing long-term policies with the next 25 years in mind. The Centre funds 50% of the costs of semiconductor manufacturing projects under its Semicon India Programme, which has an outlay of approximately $10 billion, with 2.5 percent of the budget earmarked for research and development, skill development, and training. More than 70% of the project costs for semiconductor manufacturing in India are incentivized by the Centre and state governments, with the Centre funding 50% upfront and the state governments covering the rest, Sinha added. The Centre is also attempting to entice major US corporations to locate their chip manufacturing facilities in India. Micron is planning to open a plant in India in the coming months. According to Business Standard, IT and Communications Minister Ashwini Vaishnaw met with top executives from US companies in San Francisco on Wednesday. The meetings were very fruitful, and the message was clear: India is without a doubt the next big destination for everyone in semiconductors to invest in, Vaishnaw told Business Standard over the phone. Over the next two days, Vaishnaw plans to meet more executives from Intel, Micron, Western Digital, Applied Materials, HP, Analog Devices, Lam Research, and AMD, among others. Also Read Rajasthan CM Ashok Gehlot inaugurate projects worth Rs 211 crore JSW Infra seeks expansion plans via IPO

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