India Semiconductor
Market was valued at USD 34,426.91 million in 2023 and is anticipated to
project robust growth in the forecast period with a CAGR of 24.32%. The market
is robust because of the increasing demand for electronic products by consumers
in their day-to-day life and is further driven by government initiatives to promote
electronic manufacturing. These factors are driving the growth of the India
Semiconductor Market in the forecast period.
Semiconductors
are materials with conductivities intermediate between conductors and
nonconductors or insulators. Semiconductors are made of pure elements like
silicon or germanium as well as compounds such as gallium arsenide or
cadmium selenide. Small amounts of impurities are added to pure semiconductors
in a process known as doping, causing large changes in the material's conductivity.
Additionally, numerous items, such as computers, cellphones, appliances, gaming
equipment, and medical devices, employ semiconductors.
The Rise of
Artificial Intelligence, Machine Learning and IoT
Everything from
bomb detectors to smart glasses is made with the help of semiconductor
technology. The demand for semiconductors is projected to be driven by the
ongoing efforts of semiconductor chip manufacturers to fulfil the demands of
IoT and AI. The Internet of Things is the next generation of computing devices
embedded in everyday objects that can send and receive data, including wearable
devices, smart home devices, and factory equipment." AI and machine learning aid semiconductor
companies in enhancing accuracy using metrology readings and tool-sensor data
which allows machine learning. Therefore, with the rise of Artificial
Intelligence, Machine Learning, and IoT, there is an increase in the semiconductor
market.
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Rapid
Acceleration Toward Industry 4.0 and Penetration of Industry 5.0
Industry 4.0
has enormous potential to enhance productivity, minimize waste, boost
product quality, increase industrial flexibility, reduce prices, and unleash a
slew of efficiencies. One of the most significant developments in Industry 4.0
is vision equipment, which access massive data sets using data analytics
technologies to identify and assess issues in defective products. Industry 5.0 enables
even more customization to meet customer needs and signal the end of the traditional
one-size-fits-all manufacturing approach. Automation enhances production
capacity by enabling manufacturers to handle difficult design challenges and
effectively incorporate client requirements. Industry 5.0 is the next level of
human-machine cooperation, integrating human intelligence and advanced
cognitive computing to guarantee the highest levels of productivity, security,
and environmental protection in manufacturing. These elements are likely to
propel the development of machine vision systems in the semiconductor
industries.
5G
Communication Infrastructure Deployment
The ultra-low
latency and high reliability of 5G technology are critical for high-tech
innovators. As of 2022, 153 countries and territories are investing in
5G and are in various stages of development, including 5G trials, licensee
acquisition, planning, and 5G network launch and deployment. The Internet
of things (IoT), automation, connectivity, edge technologies, artificial
intelligence (AI), and a wide range of new connected smart devices and
applications are all made accessible by 5G. The development of
higher-performing ultra-flat wafers, which are needed to power these devices,
will drive semiconductor production facilities to keep up with the new 5G
infrastructure. Hence, the aforementioned factors open opportunities for semiconductor
industries.
Government
Initiatives
The Government
of India has initiated several initiatives for the development of the
electronics sector in the country which directly impacts the market of
semiconductor across the country in the forecasted years. For instance, the
union government has approved the National Policy on Electronics (NPE). The
main goal of the policy was to achieve revenues of about USD 400 billion by
2020 with an investment worth USD 100 billion and provided employment to around
28 million by the end of 2020. The National Policy on Electronics aimed at
achieving a turnover of USD 55 billion in chip design and embedded software
industry, USD 80 billion in exports in the sector. Additionally, the Union
government of India planned to set up over 200 electronic manufacturing
clusters across the country.
Furthermore,
initiatives by the union government for boosting the semiconductor Market of
India are:
- On
23rd February 2023, the Government of India has announced the
plan for the construction of two chip-making facilities, which is expected
to cost more than USD 3.95 billion.
- In
2022, The Government of India has approved around three semiconductor
manufacturing plant projects worth USD 31.64 million under the Electronic
Manufacturing Clusters (EMC) scheme.
Challenges:
Complex Design and Multiple Firms and Activities
Hardware design
and software development are the two subcategories of semiconductor design. The
hardware design process includes the definition and specification of products,
system design, integrated circuit design, and post-silicon validation. To
provide instructions directly to a chip, firmware must be created. A form of a
lower-level program called firmware works to create designs by evading an end
device's operating system. To uncover problems early, improve overall
system-level performance, and shorten marketing time, design becomes a more
iterative process as it becomes more complex—especially for leading players.
Impact of
COVID-19: Increase in Demand for Wireless Communication
COVID-19 has
caused the semiconductor industry to mobilize quickly and make short-term
decisions with long-term significance. The global supply chains that raw
material, assembly, test, packaging, and equipment suppliers and partners form
with semiconductor businesses are extremely complicated. India's need
for wireless communication services is anticipated to expand as a result of
factors including rising internet usage, cloud service demand, and video
streaming. In addition, the COVID-19 pandemic is anticipated to raise the
demand for digital transformation, as well as technologies including 5G, IoT,
AI, and intelligent edge computing for long-term optimization. The overall
semiconductor industry, however, is expected to increase as a result of the
COVID-19 impact on semiconductor supply and demand.
Recent Developments & Investments:
- The Union
Government introduced a USD 9.43 billion incentive program for semiconductor
fabrications and design, with up to 50% government co-funding. In addition, the
government approved around USD 10 billion-dollar production-linked incentives
schemes to encourage semiconductor and display manufacturing and a
design-linked initiative (DLI) scheme to increase global and domestic
investment related to design software, IP rights, etc.
- The Indian government
has set up several electronic parks and clusters in the eastern states to
promote investment in the sector and attract leading players in the industry.
Companies such as Wipro, Tata Consultancy Services, and Infosys have a
significant presence in the region, providing opportunities for growth and
development of the semiconductor industry.
- In 2022, a significant
joint venture happened between Vedanta and Foxconn to build a semiconductor and
display production facility in Gujarat. The central government approved worth
USD 9.27 billion for the expansion of India's semiconductor and display
manufacturing ecosystem.
- In 2021, the Indian Institute of Technology (BHU),
Varanasi, signed an agreement with Applied Materials India Pvt. Ltd, the Indian
subsidiary of materials engineering firm Applied Materials, Inc., to conduct
research on semiconductors.
Market Segmentation
The India Semiconductor Market
is divided into component, application, and type. Based on component, the
market is segmented into memory devices, microprocessors, analog IC, sensors,
discrete power devices, and others. Based on application, the market is divided
into IT & telecom, automotive, consumer electronics, and other industries.
Based on type, the market is segmented into extrinsic semiconductor and
intrinsic semiconductor. The market analysis studies the regional segmentation
to devise regional market segmentation, divided among South India, North India, West India, and East
India.
Company Profiles
Broadcom India Private
Limited, Chiplogic Semiconductor Services Private Limited, Tata Elxsi Limited, Continental Device India Pvt. Ltd, MosChip
Technologies Limited, NXP Semiconductors India Private Limited, eInfoChips
Private Limited, ASM Technologies Ltd, Masamb Electronics Systems Private
Limited, Semi-Conductor Laboratory, Saankhya Labs Private Limited, ROHM
Semiconductor India Pvt. Ltd, Infineon Technologies India Private Limited,
Renesas Electronics India Private Limited, and STMicroelectronics Private
Limited are among the major players that are driving the
growth of the India Semiconductor Market.
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Attribute
|
Details
|
|
Market
Size Value in 2023
|
USD
34,426.91 million
|
|
Revenue
Forecast in 2029
|
USD 1,26,995.26
million
|
|
Growth
Rate
|
24.32%
|
|
Base
Year
|
2023
|
|
Historical
Years
|
2019–
2022
|
|
Estimated
Year
|
2024
|
|
Forecast
Period
|
2025
– 2029
|
|
Quantitative
Units
|
Revenue in
USD Billion and CAGR for 2019-2023 and 2024E-2029F
|
|
Report
Coverage
|
Revenue
forecast, company share, competitive landscape, growth factors, and trends
|
|
Segments
Covered
|
Component
Application
Type
Region
|
|
Regional
Scope
|
South
India, North India, West India, East India
|
|
Key
Companies Profiled
|
Broadcom
India Private Limited, Chiplogic Semiconductor Services Private Limited, Tata
Elxsi Limited, Continental Device India Pvt. Ltd, MosChip Technologies
Limited, NXP Semiconductors India Private Limited, eInfoChips Private
Limited, ASM Technologies Ltd, Masamb Electronics Systems Private Limited,
Semi-Conductor Laboratory, Saankhya Labs Private Limited, ROHM Semiconductor
India Pvt. Ltd, Infineon Technologies India Private Limited, Renesas
Electronics India Private Limited, and STMicroelectronics Private Limited
|
|
Customization
Scope
|
10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
|
|
Pricing
and Purchase Options
|
Avail of customized
purchase options to meet your exact research needs. Explore purchase options
|
|
Delivery
Format
|
PDF and Excel through
Email (We can also provide the editable version of the report in PPT/pdf format
on special request)
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Report Scope:
In this report, the India Semiconductor
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- India Semiconductor
Market, By Component:
- Memory Devices
- Microprocessors
- Analog IC
- Sensors
- Discrete Power
Devices
- Others
- India Semiconductor
Market, By Application:
- IT & Telecom
- Automotive
- Consumer Electronics
- Other Industries
- India Semiconductor Market, By Type:
- Extrinsic Semiconductor
- Intrinsic Semiconductor
- India Semiconductor Market, By Region:
- South India
- North India
- West India
- East India
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the India Semiconductor market.
Available Customizations:
With the given market data, TechSci
Research offers customizations according to a company’s specific needs. The
following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).