India Semiconductor: Indian chip component market expected to reach $300 billion from 2021 to 2026: report

India’s semiconductor component market will see its cumulative revenue soar to $300 billion between 2021 and 2026, according to a report on Tuesday.

The ‘India Semiconductor Market Report, 2019-2026’, a joint research by India Electronics & Semiconductor Association (IESA) and Counterpoint Research, observed that India is poised to become the second largest market in the world in terms of scale and increasing demand. for semiconductor components in several industries and applications.

He added that this was reinforced by the increasing pace of digital transformation and the adoption of new technologies and covers smartphones,

wearables, cloud data centers, Industry 4.0 applications, IoT, smart mobility, and advanced telecommunications and utility infrastructure.

“While the country is becoming one of the largest consumers of electronic and semiconductor components, most components are imported, providing limited economic opportunities for the country. Currently, only 9% of these semiconductor needs are met locally,” the report says.

he noted that the Indian end equipment market in 2021 stood at $119 billion in terms of revenue and is expected to grow at a CAGR of 19% from 2021 to 2026. He said that the design and manufacturing sector Electronic Systems Manufacturing (ESDM) in India will play a major role in the overall growth of the country, from component sourcing to design manufacturing.

“Before the end of this decade, there will be nothing untouched by electronics and the ubiquitous ‘chip’,” said IESA CEO Krishna Moorthy. “Whether it’s tackling carbon emissions, renewable energy, food security or healthcare, the semiconductor chip will be ubiquitous.

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Counterpoint Research Vice President Neil Shah added that consumption will not only come from advanced heavy-solid-state 5G and fiber-to-the-home (FTTH) network infrastructure equipment, which will contribute to more by 14% of total semiconductor consumption in 2026. , but also from high-performance AI-driven 5G devices, smartphones, tablets, PCs, connected cars, industrial robotics to private networks.

“The telecommunications sector with the advent of 5G and the deployment of the fiber network will be a key catalyst in driving the consumption of semiconductor components,” Shah said. “Furthermore, ongoing efforts to adopt cleaner and greener vehicles (electric vehicles) will provide an impetus for the automotive industry to adopt advanced technologies, which in turn will drive demand for semiconductor components in India.”

He also believed that consumer electronics, industrial, mobile phones and wearable devices would be the other key industries for the growth of the semiconductor market in India. Moreover, this demand for semiconductors will not only be driven by domestic consumption but also by the growing share of exports.

The mobile and wearable, IT and industrial sectors alone contributed almost 80% of semiconductor revenue in India in 2021, according to the research.

Tarun Pathak, research director at Counterpoint Research, said the gradual shift from feature phones to smartphones has generated increased proportions of advanced logic processors, memory, embedded controllers, sensors and other components. “This will continue to drive the value of semiconductor content in smartphones, which is still an under-penetrated segment in India, helped by the rise of wearable devices such as smartwatches and TWS,” he said. .

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