Indian Semiconductor Industry To Reach $55 Billion By 2026: Deloitte The industry is poised to play an important role in enhancing the global value chain as it will expand to a market size of $85 billion and generate employability for 6,00,000 by 2030
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Deloitte's Technology, Media, and Telecommunications (TMT) Predictions report for 2023 has revealed that semiconductor industry in India will reach $55 billion by 2026 with more than 60% of the market being driven by three industries which include smartphones and wearables, automotive components, and computing and data storage.
Deloitte anticipates that 2023 could act as the pause that refreshes and allows the semi industry to consider five big things that encompasses bringing manufacturing closer to home with both entirely new fabs and the expansion of existing facilities, managing the diversification risks and challenges, digitally transforming and digitizing many parts of the process, addressing and balancing the semiconductor talent equation, establishing and accelerating the path toward achieving environmental, social, and governance (ESG) goals, particularly around sustainability as well.
"With growing demand, the industry is poised to play an important role in enhancing the global value chain as it will expand to a market size of $85 billion and generate employability for 6,00,000 by 2030," the firm said in a release on Monday, as reported by PTI.
P N Sudarshan, partner and TMT industry leader at Deloitte India, in the news report was quoted as saying, "The semiconductor chip shortage over the past two years has amplified the importance of this industry. It has exposed the underlying risks in the value chain, owing to geopolitical threats, fluctuating demand from original equipment manufacturers, natural disasters and economic sanctions. These factors, however, also present a unique opportunity for India, positioning it as the next big manufacturing destination."
Semi companies should consider assessing the various ecosystem players that are available in new locations. Those include suppliers of raw materials and components, access to equipment and tools, availability and cost of talent, and the presence of channel partners and distributors: These all likely need to be considered at once during the planning and location process, Deloitte report noted.
Driven by key factors, including an increase in semiconductor content, the advent of 5G and IoT, and data storage requirements, the sector will also attract investment, talent, and bilateral relations focusing on supply chain, resilience, and localisation setting in India," Sudarshan added in the statement.
According to McKinsey & Company, in April 2022 had reported that the global semiconductor industry is poised for a decade of growth and is projected to become a trillion-dollar industry by 2030.