Demand for semiconductors would escalate two folds because the telecom sector is already planning to unleash 5G technology soon by deploying cloud technology
A new survey report by Indian Electronic and Semiconductors Association (IESA) stated that a year back, only 9 percent of the nation’s semiconductor requirements were sourced domestically, but it seems that the recently unleashed product-linked incentive (PLI) policies for semiconductors and 'Make in India' scheme is gaining a huge traction and would boost the sector to compete internationally.
The schemes are spearheading domestic sourcing, which is further expected to escalate by over 17 percent towards the end of 2026. The report also highlighted that the key parameters for the growth of local source include the augmenting utilizations of cutting-edge technologies artificial intelligence (AI) and IoT, dependence on complex electronic systems to process vast amounts of data, and also magnetizing digitization. The industry body further added that the nation’s semiconductor market was valued at $27 billion in 2021 and is expected to grow at a healthy CAGR of 16 per cent from 2019 to 2026 to reach $64 billion in 2026, representing 22 percent of the total end-equipment revenues.
The semiconductor ecosystem sourced 80 percent of overall profit from various industrial electronic components, wearables, IT and smartphones, the report added. In fact, experts claim that demand for semiconductors would escalate two folds because the telecom sector is already planning to unleash 5G technology soon by deploying cloud technology. If the telecom sector is viewed closely, the overall valuation for semiconductors in this segment is more than $2 billion and it is expected to grow at a CAGR of 34 per cent for the period 2021-2026.
Sandeep Aurora, Vice President – Business Development & Govt Affairs, IESA said "The industry, comprising commercial and passenger vehicles, ranks fifth largest in the world. It is expected to become third-largest by volume by 2026 after China and the US. Ongoing efforts to embrace cleaner and greener vehicles will provide an impetus to the automobile industry to adopt advanced technologies."
"There is a potential opportunity for India to serve up to $85 billion – $100 billion of the $550 billion - $600 billion annual global opportunity by 2030. This is nearly 17 per cent of the global market requirement,``added Aurora.