India's semiconductor market set to reach over USD 150 billion by 2030: Report

The report added that two third of Indian semiconductor startups operate out of Bengaluru while the half of the semiconductor manufacturing cost setup to be fulfilled by the central government.

India has over 100 semiconductor startups operating in the country while 20 per cent of global semiconductor integrated circuit design workforce is from India.

As per the report, accelerating demand for electronics and semiconductors in India is driven by rising incomes, increasing digital adoption, and a large domestic market projected to reach USD 110 billion by FY30.

According to the report India now has 100+ semiconductor design startups, growing 2.4x since 2014, with continued momentum expected.

Talking about the semiconductor manufacturing landscape, the report noted that the strong semiconductor design and talent are among a major strengh.

The report adds that the with USD 18 billion invested across five projects, India's semiconductor ambitions are taking shape. India contributes 20 per cent of the world's chip design workforce.

Growing OSAT and ATMP ecosystem is another major factor in the semiconductor growth, the report said, adding that companies like Tata, Micron, and Keynes are actively investing in advanced chip packeging and testing.

ATMP which stands for Assembly, Testing, Marking, and Packaging focus on the final assembly and packaging of chips.

The OSAT, on the other hand, involves outsourcing these processes to specialised companies.

It also highlights the incentives by the government will push the growth of the semiconductor ecosystem.

On challenges for the Indian entities, the report says that the lack of advanced founderis, supply chain dependencies and capital incentive industry will emerge as the major hurdle in the development of the ecosystem.

India lacks cutting-edge semiconductor fabs, the space is still dominated by the foreign companies such as TSMC, Samsung etc.

It adds that the heavy reliance on import for wafers, photomasks, specialty gases and chemicals present a challenge.

Another emerging hurdles in the development of the ecosystem is lack of huge investments, as the Semiconductor fabs require multi-billion-dollar investment.

India has announced Semicon India programme with a total outlay of Rs 76,000 crore for the development of semiconductor and display manufacturing ecosystem in our country.

The programme aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystem. This will serve to pave the way for India's growing presence in the global electronics value chains.

India Semiconductor Mission (ISM) has been setup as an Independent Business Division within Digital India Corporation having administrative and financial autonomy to formulate and drive India's long term strategies for developing semiconductors and display manufacturing facilities and semiconductor design ecosystem.