India's semiconductor market expected to triple to $100 billion by 2032: Report

New Delhi [India], August 18 (ANI): With about 60 per cent of semiconductor output by the Asia-Pacific region, which continues to dominate global production, India is fast emerging as a key player. The country semiconductor market, valued at USD 34.3 billion in 2023, is expected to triple to USD 100.2 billion by 2032, registering a CAGR of 20 per cent.

The global semiconductor industry is on track for strong expansion, with its market size projected to touch USD 1 trillion by 2030, growing at a compound annual growth rate of nearly 10 per cent between 2023 and 2030, according to a Union Bank of India Research report.

India role in the global supply chain is already visible. In 2022, the country exported semiconductor devices worth USD 516 million, primarily to the United States, Hong Kong, and South Africa. However, imports remained much higher at USD 4.55 billion, with China, Singapore, and Vietnam being the key suppliers.

Two-thirds of this demand is likely to come from telecom and industrial applications, with mobile, IT, consumer electronics, and industrial segments driving the growth. The spread of technologies such as 5G, artificial intelligence, and electric vehicles is further expected to fuel demand.

To accelerate this momentum, India has launched the Semiconductor Mission with an incentive outlay of USD 10 billion aimed at building a sustainable semiconductor and display ecosystem. The scheme includes 50 per cent incentive support on project costs for semiconductor and display fabs, and capital expenditure assistance for compound semiconductor and assembly, testing, marking, and packaging facilities.

Alongside, a design-linked incentive program has been introduced to encourage domestic semiconductor design companies. A talent development initiative targeting the training of 85,000 semiconductor engineers is also part of the mission.

States such as Gujarat, Odisha, Tamil Nadu, and Uttar Pradesh have already rolled out specific semiconductor policies, while Andhra Pradesh, Karnataka, Maharashtra, Odisha, Telangana, and others are stepping forward to attract investments in the sector.

At the national level, policy measures including the production-linked incentive scheme for electronics, the Make in India drive, and the Semicon India program are pushing the country closer to self-reliance in chip manufacturing.

Notably, Indian engineers contribute around 20 per cent of the global semiconductor design workforce. More than one lakh VLSI design engineers are employed in global semiconductor companies as well as domestic design services, underscoring India potential to strengthen its presence in the industry value chain. (ANI)

Disclaimer: This news article is a direct feed from ANI and has not been edited by the News Nation team. The news agency is solely responsible for its content.