NEW DELHI: India’s semiconductor component market will see its cumulative revenues climb to USD 300 billion during 2021-2026 as Make in India and Production Linked Incentive schemes will boost local sourcing of semi-components in the coming years.
According to research by the India Electronics and Semiconductor Association (IESA) and Counterpoint Research Mobile and wearables, IT and industrial sectors alone contributed to almost 80 per cent of the semiconductor revenues in India in 2021.
The report noted that the telecom sector, with the advent of 5G and fibre network rollout, will be a key catalyst in boosting semiconductor component consumption.
“This consumption will not only come from the advanced semiconductor-heavy 5G and FTTH network infrastructure equipment, which will contribute to more than 14 per cent of the total semiconductor consumption in 2026 but also from the highly capable AI-driven 5G endpoints, from smartphones, tablets, PCs, connected cars, industrial robotics to private networks,” said Neil Shah, Vice President, Counterpoint Research.
According to the report, India is poised to be the second largest market in the world from the perspective of scale and growing demand across industries and applications. This demand is being pushed by the increasing pace of digital transformation among consumers, enterprises and the public sector through the adoption of new technologies, from advanced connectivity to content consumption to the cloud.