Reference:

• According to a report by financial services firm UBS (Union Bank of Switzerland), India's semiconductor industry revenue is projected to double from USD 54 billion in 2025 to USD 108 billion by 2030.

Analysis:

• This growth is based on a 15% compound annual growth rate (CAGR), which is higher than the global average.
• The 15% CAGR projection exceeds UBS's estimates for the global semiconductor market, attributed to India’s favorable demographics, rising electronics demand, increased enterprise adoption of advanced semiconductors, and supportive government policies.
• The report further estimates that revenue from localization opportunities will reach around USD 13 billion by 2030.

Growth Drivers:

• Domestic Demand: India's growing digital economy and young population have significantly boosted electronics consumption, increasing semiconductor demand.
• Government Policies: Schemes like the Production-Linked Incentive (PLI) have promoted local manufacturing and attracted foreign investments.
• Localization: Local production efforts are expected to contribute USD 13 billion in revenue by 2030, creating significant opportunities for India’s semiconductor industry.

Global Position:

• India currently accounts for 0.1% of global wafer capacity and 1% of annual equipment spending, but represents 6.5% of global semiconductor demand.
• As multinational companies seek alternatives to China under the “China Plus One” strategy, India emerges as a strong contender.

India’s Strengths:

• Around 20% of global chip designers are based in India, making it a hub for semiconductor design.
• India's expertise in software and IT services positions it as a key player in the global semiconductor value chain.

Semiconductors: