India to become world’s second-largest semiconductor consumer market: Counterpoint

The “2019-2026 India Semiconductor Market Report” jointly compiled by the Indian Electronics and Semiconductor Association (IESA) and Counterpoint was released recently. According to the report, the cumulative consumption of the Indian semiconductor market in 2021-2026 will reach 300 billion US dollars. It is expected to become the second largest semiconductor consumer market in the world.

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According to Tarun Pathak, director of consultancy Counterpoint, the mobile and wearable device industry is the largest contributor to India’s semiconductor consumption in 2021. With the popularity of cheap mobile Internet and the acceleration of smartphone penetration, high-performance processors, memory, sensors, and other semiconductors in end products The increase in the value of components will continue to drive market growth.

Neil Shah, vice president of Counterpoint, said when looking at the medium and long-term market prospects, communications and automobiles will become the key areas for India’s semiconductor consumption beyond mobile and wearable devices.

From 2021 to 2026, India’s terminal electronic equipment market will achieve a compound annual growth rate of 19%. At present, most semiconductor components still rely on imports, and domestic production can only meet 9% of the demand. The report believes that ineffective incentive measures. The development potential of India’s local semiconductor industry is expected to be released at a faster pace.

Sunil G Acharya, vice president of IESA, said that the semiconductor industry will play an important role in India’s economic growth, and the combination of demographic dividends and the influx of foreign capital will change the face of India’s semiconductor industry in the next few years.

Counterpoint analyst Shivani Parashar said that India should focus on developing the integrated circuit design industry ecology and lay a solid application foundation for chip manufacturing. The industrial policy is expected to push the domestic self-sufficiency rate of India’s semiconductors to 17% in 2026, and the scale of the local industry will increase by about 6 times.