NEW DELHI: The rollout of 5G in India will increase the demand for semiconductors, claims a report released on Monday by India Electronics and Semiconductor Association (IESA).
The report said the present valuation of the semiconductor market for the telecom segment is more than $2 billion and it will grow by 34% in the next five years. “The telecom market in India, which is in the process of preparing for the 5G rollout, deploying cloud network functionality and expansion of network coverage, will bring about a surge in demand for semiconductors. The present valuation of the semiconductor market for the telecom segment is more than USD 2 billion and it is expected to grow at a CAGR of 34% for the period 2021-2026,” said the report.
IESA’s report also found that mobile and wearables, IT, and industrial are the leading segments in the Indian semiconductor industry, contributing nearly 80% of the revenue in 2021. The government, in order to develop a robust and sustainable Semiconductor and Display ecosystem in the country, approved Semicon India Programme with an outlay of `. 76,000 crore on December 15, 2021.
The report noted that Indian semiconductor market was valued at $27,154 million in 2021 and is expected to grow at a CAGR of 16% from 2019 to 2026 to reach $64,050 million in 2026. Only 9% of India’s semiconductor components were locally sourced in 2021.