New Delhi, Aug 16 : India’s semiconductor component market is likely to hit $300 billion in total revenues in 2026, as ‘Make in India and production-linked incentives (PLI) schemes will increase local sources of semiconductor components in the years ahead According to a new report on Tuesday.Wearables and mobile devices IT and industrial segments currently account for around 80 percent of the revenues from semiconductors in the nation in 2021.
Further policy reforms and the development of an ecosystem for semiconductors will help reduce dependence on imports in accordance with the report of the India Electronics & Semiconductor Association (IESA) and Counterpoint Research.
“Before the close of this decade there will be no area that isn’t impacted by electronic devices and the ubiquitous chip.If it’s combating carbon emissions and sustainable energy sources, food safety or health care, the chip will be all-pervasive.” declared Krishna Moorthy, CEO and President of IESA.
The Indian government has announced a spending of the sum of Rs 76,000 crore (around 10 billion dollars) under the PLI scheme.in addition to the creation of an electronic display and semiconductor electronics manufacturing ecosystem.
In the meantime, Maharashtra has beaten at least five states in winning an incredible amount of 2.06 lakh-crore investment from the Vedanta Group and Foxconn in the semiconductors chip industry in the sunrise and display fabrications industry in Pune.
“The slow shift from smartphones to feature phones has resulted in increased use of advanced logic processors and memory, as well as integrated sensors, controllers as well as other parts.
It is expected to continue to increase the potential of the semiconductors in smartphones, assisted by the growth of wearables like smartwatches and TWS,” explained Tarun Pathak Director of Research at Counterpoint Research.
According to Counterpoint Vice President Neil Shah, the next big surge in semiconductors will be derived from a variety of sectors.
“However the telecom industry with the introduction of 5G as well as fiber network rollouts is a key factor in increasing semiconductor component consumption” Shah said.
This will not just be driven by the highly advanced semiconductor-heavy 5G and FTTH network infrastructure equipment which will account for more than 14 percent of the total consumption of semiconductors in 2026 “but as well from the high-performance AI-driven 5G devices that include tablets, smartphones PCs, PCs, connected vehicles industrial robotics to private networks” he mentioned.
In 2021, India’s total equipment market was worth $119 billion in terms of revenue.It is predicted to expand at a rate of 19 percent between 2021 and 2026.
The electronic system design and manufacture (ESDM) industry in India plays a key role in the overall growth of the country from sourcing components, to manufacturing of designs in the report.
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