India’s Semiconductor Market to Cross $100 Billion by 2030: Driving Growth with Innovation and Incentives

Introduction:

 India’s semiconductor market is on a rapid growth trajectory, expected to surpass $100 billion in valuation by 2030, according to the Union Minister of State for IT, Jitin Prasada. This remarkable growth reflects the government’s focus on transforming India into a semiconductor hub through production-linked incentive (PLI) schemes, modernizing infrastructure, and fostering a robust chip design ecosystem.

Government Initiatives to Boost Growth:

 Key government initiatives, such as the PLI and Design-Linked Incentive (DLI) schemes, are propelling this growth. These initiatives aim to set up semiconductor fabrication plants (fabs), display fabs, and packaging facilities. The modernization of the Semi-Conductor Laboratory in Mohali is also a significant step in strengthening India’s domestic semiconductor capabilities.

Tata Electronics and Powerchip Partnership: 

A key highlight of India’s semiconductor expansion is the upcoming chip fab in Dholera, Gujarat, being set up by Tata Electronics in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC). Expected to start operations by 2027, this $10.9 billion investment will produce 3 billion chips annually, catering to industries like railways, electric vehicles, and more.

India's Growing Chip Design and Engineering Sector:

 India already boasts a strong semiconductor design industry, supported by the presence of global giants like Qualcomm and AMD. Qualcomm, with a large engineering base in India, contributes significantly to chip design for mobile processors and networking modems. The company views India as a key engineering hub, with 15,000 engineers working across design operations.

Similarly, AMD’s $400 million investment to expand R&D operations in India highlights the country’s role as a global semiconductor engineering center. India is poised to contribute nearly one-fifth of all global chip design operations due to its talented engineering workforce.

The Road Ahead: 

The government’s continued efforts, including introducing a new components incentive scheme, will further strengthen India’s semiconductor ecosystem. This will ensure higher domestic value addition and help India establish a prominent position in the global semiconductor supply chain.

Conclusion:

 India’s journey towards becoming a major player in the global semiconductor market is being fueled by significant investments, robust policies, and a highly skilled engineering workforce. With a projected market value of $100 billion by 2030, the future of India’s semiconductor industry looks promising, contributing to the nation’s technological advancement and economic growth.

Courtesy by:  livemint