IESA: India's Semiconductor Market to Hit $64B by 2026

India's domestic semiconductor industry can only supply 9% of its $27 billion local market, according to a recent report by the Indian Electronics and Semiconductor Association (IESA). According to IESA, the Indian semiconductor market is expected to grow at a CAGR of 16% from 2019 to 2026, reaching $64 billion by 2026, accounting for 22% of total terminal equipment revenue. According to IESA, 80% of the market demand comes from mobile phones, smart wearables, IT and other industrial components.

In order to meet the rising demand for semiconductors and cope with the global shortage of cores, various countries have introduced policies to increase support for their chip industry. India has stepped up chip subsidies, wooed foreign investors and pushed the country to become a high-tech production hub, with an incentive package worth 760 billion rupees ($10.2 billion) for global chipmakers.

The telecom segment of the Indian chip market is now over $2 billion and is expected to grow at a CAGR of 34% during the period 2021-2026.

Cars Will be India's Biggest Opportunity

According to a report released by the Indian Electronics and Semiconductor Association (IESA), India's automotive industry, which includes commercial vehicles and passenger vehicles, ranks fifth in the world and is expected to become the second largest after China and China in terms of numbers by 2026. United States, ranked third.

The report goes on to assess India's potential impact on the world market, the global semiconductor market could be between $550 billion and $600 billion by 2030, and India's share could be around $85 billion to $100 billion, which is almost a global market demand of 17%.