India Semiconductor

India Semiconductor

Semiconductors are the strategic materials found in modern technology; they form the basis of practically all electronic devices. It is made of components such as silicon, due to which it exhibits electrical conductivity between that of a conductor and an insulator thus delicately allowing control of electrical currents. This application makes semiconductors essential in most uses, from mobile phones, laptops, and home appliances, to automobiles, and manufacturing industries. Semiconductors are very competitive and continuously evolving due to trends in miniaturization and improvement of technologies. Semiconductor remains quite vital in enhancing the continuous growth of global electrical and electronic products demand.

The India Semiconductor Market is expected to grow at a steady rate of around 23.1% owing to the expanding product portfolio. For instance, in July 2024, Larsen & Toubro’s semiconductor subsidiary, L&T Semiconductor Technologies announced the acquisition of Bengaluru-based SiliConch Systems. The acquisition is expected to bolster LTSCT's engineering expertise and IP portfolio, aligning with its growth strategy in the fabless semiconductor market. Moreover, rising demand for electronics, growing government initiatives, and rapid digital transformation are anticipated to boost the Indian semiconductor market.

• Based on component, the Indian semiconductor market is segmented into memory devices, analog IC (Integrated Circuit), MPU (Microprocessor unit), MCU (Micro Controller Unit), sensors, discrete power devices, and others. The memory devices segment acquired a significant share of the Indian semiconductor market owing to the higher rate of data storage applications in consumer electronics, automobiles, and cloud robotics are higher. In the process of evolving from an emerging market to a digital market, India now requires power memory products. Local semiconductor manufacturing and research are being pursued by major technology firms due to this trend, backed by government policies that promote semiconductor production. Apart from catering to internal consumption, this growth has helped shape India into a competitive player in the global memory market thus promoting innovation and investment. Thus, memory devices held a significant share of the market in the year 2023.
• Based on application, the Indian semiconductor market is segmented into networking & communication, consumer electronics, power generation, and others. The consumer electronics segment caters significant segment of the Indian semiconductor market owing to the increasing per capita income, increasing urbanization, and changing penchant for using electronic gadgets. The immediate and proportional growth in the demand for smartphones, smart TVs, wearables, and smart home appliances has fueled the need for even smarter semiconductor components. Technological advancements in areas such as 5G connectivity, artificial intelligence, and the Internet of Things (IoT) even amplify this because consumers are interested in all-in-one systems with enhanced features. Moreover, favorable policies and funding for local semiconductor manufacturing are improving the environment for the business and helping companies to address both, domestic and global markets’ needs. India is at a strong place in playing an imperative role in the supply chain of consumer electronics and semiconductors enabling constant innovation and market development at the global level. Thus, consumer electronics held a significant share of the market in the year 2023.
• For a better understanding of the market adoption of Indian semiconductor, the market is analyzed based on its state-wise presence in India such as North India, East India, West India, and South India. The semiconductor market in South India is growing at a fast pace due the factors such as supporting Government policies, rising investment, and the presence of a research and development environment. Karnataka, Tamil Nadu, and Andhra Pradesh are becoming as prominent players, and Bengaluru city is identified as the Global Design & Engineering Centre for the semiconductor industry. The region is abundant in human resources and enhanced by the key educational institutions that are graduating with competent skills in electronics and engineering. Policies like the Electronics Policy which are experimental aim at developing the electronics manufacturing industry, and get players from other countries to invest in semiconductor manufacturing plants (fabs) and research facilities. Such trends as increased installation of advanced technologies in various industries including automotive, IoT, and smart manufacturing are also extending market growth. With ongoing advances in competency and infrastructure in South India, the region has all the trappings to become a major player in the international semiconductor market. For instance, in September 2022, Mitsubishi Electric India Power Semiconductors, entered into a Memorandum of Understanding with IIT Madras Research Park to support the programs conducted by the institute for the research and development of sustainable technologies. Rapid innovation and technological upliftment in India are the goals that Mitsubishi Electric aims to achieve for the nation’s consistent development and through this partnership with IIT Madras Research Park, the company took a step ahead to accomplish the same. Thus, south India is growing at a significant rate in the Indian semiconductor market.
• Some of the major players operating in the market include Bharat Electronics Limited (BEL); NXP Semiconductors; Renesas Electronics Corporation; Saankhya Labs; Semi-Conductor Laboratory (SCL); Mitsubishi Electric India Pvt. Ltd.; Infineon Technologies AG; Broadcom, Inc.; Chiplogic Technologies; CG Power & Industrial Solutions Ltd.