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India- the next major hub of the semiconductor industry: Ken Research

With the rising domestic demand for electronic products, an increasing number of collaborations with global manufacturing players to shift in India, and the Indian government’s encouraging policies like Make in India, Production Linked Incentive Scheme (PLI), the road to India’s success as a global hub of semiconductor manufacturing industry looks promising and a near possibility.

1. India’s semiconductor market is flourishing as a result of increasing design centres, rising local demand, expansion of chip manufacturing plants, and government support

 

Key Findings

India Semiconductor Manufacturing Sales Value increased at a CAGR of ~11% from 2017 to 2022.

In India, semiconductors are designed and then sent to countries like China, Taiwan, the USA and a few European countries for manufacturing.

India also plays a role in assembling, testing, and packaging of semiconductors.

2.  However, the country still remains 100% import driven; India is only involved in designing, assembling, testing and packaging of semiconductors

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 Key Findings

  • Research & Development: Pre-production efforts to increase processing capability & speed at a reduced cost.
  • Design: Start of production. Highly skill-intensive, access to design software & IP blocks. R&D costs are high in this stage as well.
  • Manufacturing: Highly capital intensive, access to manufacturing equipment, chemicals & wafer facilities, need to constantly upgrade facilities as per technological advancement.
  • Assembly & Testing: Highly labor-intensive, less reliant on tech, high volume low margins, could be proved redundant by fabs creating wafer-level packaging.
  • Distribution: Finished semiconductors are sold to Original Equipment Manufacturers (OEMs) for use in electronic goods. Needs an efficient logistics network.

3.  The industry is poised to grow at a CAGR of ~19% in the coming years due to continued government push and rising demand from the end-user market

India Semiconductor Manufacturing Sales Value is expected to increased at a CAGR of ~19% from FY’22to FY’27


Key Takeaways

India is planning to expand chip manufacturing plants. International semiconductor consortium (ISMC), a joint venture between Abu Dhabi-based Next Orbit Ventures and Israel’s Tower Semiconductor, plans to invest Rs 22,900 crore ($3 billion) in a chip fab.

  • The 65-nanometer analog semiconductor fabrication factory is expected to provide opportunities for 1500 high-tech and high-quality jobs and at least 10,000 ancillary jobs. ISMC expects to help fund the development with the Indian government’s $10 billion semiconductor and display incentive plan.

With the growing demand by end user industries such as industrial machinery, automobiles, telecommunication equipment, and office automation, among others for computing purposes is expected to accelerate the growth of the semiconductor market in the coming years.

  • With internet penetration expected to reach 900 million users in the next few years from 622 million users in 2020, there will be an increasing adoption of smart devices, hence, contributing to the semiconductor market growth.

To Know more about this Whitepaper, Visit this link:-

India semiconductor industry

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