Smartphones, automotive components & computing to help semiconductor industry reach $55 bn by 2026: Report

Bengaluru, Feb 28 (KNN) The semiconductor industry in India will reach USD 55 billion by 2026, said Deloitte, in its latest report.

The report titled technology, telecom and media space pointed out that over 60 per cent of the market will be driven by three industries—smartphones and wearables, automotive components, and computing and data storage.

The sector will also attract investment, talent, and bi-lateral relations focusing on supply chain, resilience, and localisation in India with the advent of 5G and data storage requirements, Deloitte said.

Speaking about the report launched, P N Sudarshan, partner and TMT industry leader at Deloitte India, said, “The semiconductor chip shortage over the past two years has amplified the importance of this industry and exposed the underlying risks in the value chain, owing to geopolitical threats, fluctuating demand from original equipment manufacturers (OEMs), natural disasters, and economic sanctions.”

The report predicts that M&A activity in the software-as-a-service (SaaS) space, and in impact sectors such as agritech, is expected to emerge as key investment themes in India’s technology, media, and telecommunications industry.

SaaS verticals expected to garner interest from financial as well as strategic investors in 2023 are cloud-native, hyper intelligent automation (HIA), web 3, and verticalised SaaS solutions, it said. (KNN Bureau)