Govt sops key as India’s chip market set to explode to $350 billion by 2035
By 2035, India could be consuming $350 billion of semiconductor devices and components under the parlay, it said.
By ETtech |
ETtech
India’s semiconductor devices and components consumption across end markets stands at $54 billion in 2026 and is projected to touch $130 billion by 2030, provided there is continuity of incentives and subsidies by the government, as per Fab Economics’ proprietary forecast.
By 2035, India could be consuming $350 billion of semiconductor devices and components under the parlay, it said.
It said India could achieve domestic fabrication and packaging potential breaching 20% of its semiconductor import bill by revenue generated via domestic consumption and export supply from India.
The forecast across cost structures for legacy fab in India highlighted India’s status quo of heavy import dependence of over 85% of fab project cost and around 50% of wafer fabrication cost could steadily decline to import dependence of over 68% of fab project cost and around 30% of wafer fabrication cost by 2030 and further match the metrics of semiconductor clusters of the world with import dependence shrinking to 55% of Fab project cost and around 18% of wafer fabrication cost by 2035.
However, it warned that such steep decline in import dependence requires continuity of subsidy packages and sustained pace of execution and priority – requiring three incentive packages ISM 1.0, 2.0. 3.0 by 2030 aggregating to $40 billion subsidy across centre and states and two additional packages ISM 4.0, 5.0 with incremental subsidy across of $20 billion each.
