India Semiconductor Market

India Semiconductor Market Size:

The India semiconductor market size reached US$ 39.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 140.8 Billion by 2032, exhibiting a growth rate (CAGR) of 14.5% during 2024-2032. The increasing focus on renewable energy sources, the rising sales of electric vehicles, the growing use of sensors and cameras in autonomous vehicles, the escalating deployment of 5G networks, and the increasing product demand in the healthcare sector are some of the factors propelling the market.

India Semiconductor Market Analysis:

• Major Market Drivers: The India semiconductor market is majorly driven by the increasing adoption of electronics in various industries.
• Key Trends: The increasing demand for specialized chips for automotive and industrial applications is one of the key trends.
• Geographical Trends: The market is witnessing some major activity in regions such as North India, South India, East India, and West and Central India.
• Competitive Landscape: Some of the market players are ASM Technologies Ltd, Broadcom India Pvt. Ltd, Chiplogic Semiconductor Services Private Limited, among others.
• Challenges and Opportunities: Challenges include competition from established semiconductor manufacturing hubs. Opportunities include the increasing demand for electronics and the shift towards digitalization.
   

India Semiconductor Market Drivers:

Rising Need for Electronic Devices

The increasing demand for electronic devices is bolstering the market growth. The rising household disposable income levels, rapid urbanization, and growing population are creating a huge demand for regular and advanced consumer electronics devices. With the increasing demand for electronic devices, there is a rising demand for semiconductor components.  There has also been a growing demand for electronic devices in other industries, such as automotive, healthcare, and telecommunications. This is driving the market. Several leading consumer electronics companies are making huge investments in introducing new devices, thus catalyzing market growth.

Digital transformation Across End use Industry

The increasing digital transformation across many end-use industries is driving the market. According to the McKinsey and HBR report, banking, finance, and insurance are one of the most digitalized sectors and have a digitalization score of 4.5. With such a score, this sector heavily relies on semiconductor technologies to support its operations. As industries face digitalization, there is an increasing demand for semiconductor components. Digital technologies are being widely used in many sectors. They use semiconductor chips for various purposes, which, in turn, is propelling the market. Furthermore, favorable government initiatives like Smart Cities Mission and Digital India are aiding the market expansion.

Focus on Innovation and R&D

The semiconductor industry, which forms the foundation of all contemporary digital products and emerging innovations, has seen a multiplication in income generation over the last ten years. It is anticipated that the 300mm silicon wafer market will rise by 5% in 2021 compared to 2020 as these companies plot their course for future expansion. In order to meet this need, businesses need to continue to be inventive. Businesses must reconsider how they will compete and add value in the future. Semiconductor businesses have procedures and tools in place to innovate. The companies are focusing on innovation processes to drive the market. They are investing heavily in research and development activities.

Expansion in Telecommunication Infrastructure

As per Invest India, with 1.17 billion subscribers as of September 2023, India's telecommunications industry is the strongest in the world. There is an increased need for strong telecommunication networks as the country progresses towards digital transformation. The implementation of 5G technology is leading to substantial investments in telecommunications infrastructure. Therefore, there is a growing demand for semiconductor solutions to support the future networks. Radio frequency chips and baseband processors are crucial elements for constructing telecommunication networks. These parts satisfy the needs of new technologies and applications.

India Semiconductor Market Opportunities:

Government Support Through Incentives and Schemes

India's efforts to build a strong semiconductor industry have been strengthened by the Semicon India Program. The government is providing INR 760 billion to support businesses. This program is to support the growth of telecom in India as well as the semiconductor ecosystem in India. This project is being led by the India Semiconductor Mission (ISM), which is in charge of carrying out and managing the Semicon India Program. In addition to managing application procedures, the ISM also performs technical and financial evaluations, suggests which applicants should be chosen, and carries out additional duties assigned by the Ministry of Electronics and Information Technology (MeITY). The Indian government has also launched some other initiatives and schemes, such as Semiconductor Fabs Scheme, Display Fabs Scheme, Design Linked Incentive (DLI) Scheme, etc.

Rise in AI and IoT

India is actively participating in this expanding market since AI is changing the semiconductor business. The National Mission on Quantum Technology and Scientific Computing has been established by India, which is progressing with its plans to create original AI processors. The Union Cabinet approved the National Quantum Mission (NQM) at a total cost of Rs. 6003.65 crore from 2023-24 to 2030-31, with a mission to seed, nurture, and scale up scientific and industrial R&D and promote a vibrant & innovative ecosystem in Quantum Technology (QT). Given the potential for disruptive innovation and market development, investors are actively looking for chances to invest in Indian firms that are leading the way in AI and ML hardware solutions. Indian semiconductor businesses, from specialized processors to edge AI platforms, are positioned to revolutionize AI-driven technology worldwide.

Trend toward Sustainable Practices

The rising trend towards sustainable practices is catalyzing the market. Semiconductor manufacturers have a growing sense of urgency as early progress toward sustainability goals has slowed. Semiconductor manufacturers are realizing the need for more sophisticated supply chain and ecosystem engagement. As a result, the key markets are introducing regulation that increases sustainability performance and transparency requirements and links these to the cost of market access. Expectations of stakeholders have increased. Sustainability is becoming a significant differentiating factor in semiconductor companies’ brands. Semiconductor customers are frequently expecting suppliers to adhere to sustainability goals. End consumers, shareholders, and employees also regularly factor sustainability into decisions, thus catalyzing the market.

Supply Chain Diversification

There have been multiple strategies adopted by the India semiconductor industries. Supply chain diversification is one of them. COVID has changed the strategy of many organizations, with  an enhanced focus on building domestic semiconductor manufacturing capabilities. India has always made an effort to profit from the significant focus on domestic electronics and manufacturing. They've done comparatively well when it comes to establishing backup plans and effective inventory management. Over time, partnerships or collaborations with numerous foreign partners have only become stronger. One of the most important tactics has allowed the companies to forge deeper collaborations to reduce unforeseen circumstances in the future, especially with the assistance of the government. Numerous Indian organizations have also adopted predictive modelling and data analytics, which have improved their inventory management. These are the most important strategy changes that India semiconductor industry has done.

Initiatives like the Indian Semiconductor Mission (ISM)

Initiatives like the Indian Semiconductor Mission (ISM) are offering numerous opportunities for the India semiconductor industry. Within the Digital India Corporation, the ISM is a specialized and independent business division that aims to build a growing semiconductor and display ecosystem to facilitate India's rise as a major global center for electronics design and manufacture. The mission is to provide a focal point for the comprehensive, coherent, efficient, and seamless implementation of the Program for Development of Semiconductor and Display Ecosystem, in collaboration with government ministries, departments, agencies, industry, and academia. The mission is spearheaded by worldwide experts in the Semiconductor and Display Ecosystem.

Key Technological Trends & Development:

AI Integration

Semiconductors are essential to the expansion of the electronics sector, making it critical to have a reliable semiconductor supplier to protect information infrastructure and facilitate digital transformation. This has been made possible by the advancement of artificial intelligence technology and the creation of numerous uses in both the economy and society. The India semiconductor industry has already redesigned its strategy to focus on areas that will both continue to yield a return on the industry's significant investments and justify newer investments in custom designs and manufacturing. This is due to the markets for semiconductors becoming saturated in the previously rapidly growing PC and mobile sectors. Nowadays, the emphasis is more on industry robots, drones, IoTs, autonomous cars, and other technologies that are mostly motivated by the idea of Industry 4.0. Applications for semiconductors required for embedded AI in facial recognition, speech-to-text, personal assistant, navigation, and search are being viewed with interest here. AI technologies are also being used in high-performance computing for complex simulation and modelling, data pattern recognition and prediction, and data analytics and decision support functions.

System-on-Chip (SoC) Design

The India semiconductor market is witnessing a significant shift towards System-on-Chip (SoC) design. This trend is primarily propelled by the increasing demand for compact and efficient electronic devices across various industries. Additionally, the growing adoption of IoT (Internet of Things) technology and the proliferation of connected devices are driving the need for customized SoCs tailored to specific applications. Moreover, advancements in semiconductor manufacturing processes, such as the transition to smaller process nodes and the integration of advanced features like AI (Artificial Intelligence) and machine learning, are fueling the demand for SoC design services. Furthermore, the Indian government's initiatives, such as the Production-Linked Incentive (PLI) scheme for the semiconductor industry, are incentivizing domestic companies to invest in SoC design capabilities.

Gallium Nitride (GaN) and Silicon Carbide (SiC)

Gallium nitride (GaN), a semiconductor technology that has revolutionized the industry, is a component of the power electronics revolution that is currently gaining momentum. Alongside silicon carbide (SiC), GaN represents one of the two semiconductors progressively supplanting silicon-based electronics across substantial segments of power electronics. anticipated energy conservation is substantial, given the widespread deployment of billions of such devices globally, many of which operate incessantly for prolonged durations daily. The replacement of incandescent and other legacy lights with GaN and SiC power electronics promises to yield a more pronounced positive environmental impact than the replacement of legacy lighting by GaN LEDs.

Advance Packaging

The India Semiconductor Research Centre (ISRC) is concentrating on modular chiplet advanced packaging. India is eager to solidify its leadership in cutting-edge packaging. Since chips are becoming more complicated and larger, there is a trend in the ecosystem away from monolithic processors towards modular chips. In order to do this, System on Chip designs must be broken down into discrete chips that represent heterogeneous functionalities. These chips must then be integrated with improved packaging. Like the shift from widespread landline deployment to mobile phone use, the 3D-IC trend is rapidly gaining traction but is still in its early stages. This offers India great potential to take the lead in this industry change. Cadence maintains close relationships with top foundries like as Samsung and TSMC in order to supply certified references for its Integrity platform.

India Semiconductor Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on components, material used, and end user.

Breakup by Components:

• Memory Devices
• Logic Devices
• Analog IC
• MPU
• Discrete Power Devices
• MCU
• Sensors
• Others
   

Memory devices account for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the components. This includes memory devices, logic devices, analog IC, MPU, discrete power devices, MCU, sensors, and others. According to the report, memory devices represented the largest segment.

The memory devices segment accounted for the largest revenue share. As memory devices are integrated into end-user devices and continue to be a driving force behind technological developments like cloud computing and virtual reality, the market is predicted to expand overall. Revenue would come from the high average selling price of DRAM and NAND flash chips. The increasing adoption of digitization and the rising number of digital enterprises are responsible for this trend. The growing demand for virtual reality and the expanding need for cloud computing are also driving the market.

Breakup by Material Used:

• Silicon Carbide
• Gallium Manganese Arsenide
• Copper Indium Gallium Selenide
• Molybdenum Disulfide
• Others
   

Silicon carbide holds the largest share of the industry

A detailed breakup and analysis of the market based on the material used have also been provided in the report. This includes silicon carbide, gallium manganese arsenide, copper indium gallium selenide, molybdenum disulfide, and others. According to the report, silicon carbide accounted for the largest market share.

Silicon carbide is dominating the market. The most used semiconductor material is silicon carbide, mostly due to its affordability, availability, and rather stable characteristics at elevated temperatures. Manufacturers find silicon carbide to be an appealing option due to its established fabrication infrastructure. Due to its exceptional electrical and thermal conductivity, silicon carbide is frequently utilized in the production of radiators and high-power electronic components. It is also widely used in high-temperature molten metal applications, high-temperature petrochemical applications, and other related sectors.

Breakup by End User:

• Automotive
• Industrial
• Data Centres
• Telecommunication
• Consumer Electronics
• Aerospace and Defense
• Healthcare
• Others
   

Consumer electronics holds the largest share of the industry

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes automotive, industrial, data centres, telecommunication, consumer electronics, aerospace and defense, healthcare, and others. According to the report, consumer electronics accounted for the largest market share.

Mobile phones, laptops, game consoles, microwaves, digital cameras, and refrigerators all operate with the use of semiconductor materials such as integrated chips, diodes, and transistors. The high demand for these consumer electronic devices is part of the reason there are currently such long wait times for these devices. The increasing demand for smart devices and rapid technological advancements are driving the market. The rising disposable income and changing lifestyles of consumers are also contributing to the growing adoption of consumer electronics, further fueling the demand for semiconductors.

Breakup by Region:

• South India
• North India
• West & Central India
• East India
   

South India leads the market, accounting for the largest India semiconductor market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include South India, North India, West & Central India, and East India. According to the report, South India accounted for the largest market share.

The India semiconductor market is dominated by the southern region of India. States like Karnataka, Andhra Pradesh, and Telangana are home to the majority of manufacturing enterprises and their plants. The Eastern Region of India does not currently have any research and development or design centers. Among the recent additions to the semiconductor industry is M31, with a center in Bengaluru, which is involved in intellectual property development, integrated circuit design, and electronic design automation fields, including memory compilers and standard cell library solutions.

Analysis Covered Across Each Country:

• Historical, current, and future market performance
• Historical, current, and future performance of the market based on components, material used, and end user.
• Competitive Landscape
• Government Regulations
   

Competitive Landscape:

The market research report has provided a comprehensive analysis of the competitive landscape covering market structure, market share by key players, market player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant, among others. Detailed profiles of all major companies have also been provided. This includes business overview, product offerings, business strategies, SWOT analysis, financials, and major news and events. Some of the key players in the India semiconductor industry include ASM Technologies Ltd, Broadcom India Pvt. Ltd, Chiplogic Semiconductor Services Private Limited, eInfoChips Private Limited, MosChip Technologies Ltd, NXP Semiconductors India Private Limited, ROHM Semiconductor India Pvt. Ltd, and Tata Elxsi Limited.

The key players are constantly working on fulfilling the needs of both AI and IoT. This is likely to propel the India semiconductor market trends and demand. This growth is further fueled by intense competition among market players and high investment in research and development (R&D) activities. In July 2020, Qualcomm Technologies Inc. launched ‘Qualcomm QCS410’ and ‘Qualcomm QCS610’ system-on-chips (SoCs). These chips are made for premium camera technology, including powerful machine learning (ML) and artificial intelligence (AI) features. This, in turn, is driving the market growth. The key market players are also entering into partnerships to expand their market reach. For instance, Google Cloud and Broadcom Inc. announced an expanded partnership that will see Broadcom optimize its VMware workloads for Google Cloud.

Analysis Covered for Each Player:

• Market Share
• Business Overview
• Products Offered
• Business Strategies
• SWOT Analysis
• Major News and Events
   

India Semiconductor Market News: 

• March 13, 2024: TATA Group aims to start commercial production from India's first semiconductor fabrication unit by 2026, given the nation's protracted struggle to become self-sufficient in chips, which power everything from defense systems to cellphones.
• January 11, 2024: Infosys, a prominent leader in next-generation digital services and consulting, announced a definitive agreement to acquire InSemi, a reliable semiconductor design and embedded services provider. This strategic investment further strengthens Infosys’ Engineering R&D capabilities and demonstrates its commitment to co-create with clients worldwide to help them navigate their digital transformation journey.
• March 30, 2022: Tejas Networks announced that it has signed definitive agreements to acquire 64.40% of shares of Saankhya Labs Private Ltd. Bangalore for Rs 283.94 Cr in cash.
   

India Semiconductor Market Report Scope:

Key Questions Answered in This Report:

• How has the India semiconductor market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the India semiconductor market?
• What is the impact of each driver, restraint, and opportunity on the India semiconductor market?
• What are the key regional markets?
• Which countries represent the most attractive India semiconductor market?
• What is the breakup of the market based on the components?
• Which is the most attractive components in the India semiconductor market?
• What is the breakup of the market based on the material used?
• Which is the most attractive material used in the India semiconductor market?
• What is the breakup of the market based on the end user?
• Which is the most attractive end user in the India semiconductor market?
• What is the competitive structure of the market?
• Who are the key players/companies in the India semiconductor market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India semiconductor market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India semiconductor market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India semiconductor industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.