Semiconductor consumption of India likely to cross $70 bn by 2026

New Delhi, Oct 13 (KNN) India is expected to consume roughly USD 27 billion worth semiconductors in 2022 and it’s consumption is expected to touch USD 70 billion by 2026, said India Electronics and Semiconductor Association (IESA) Chairman Vivek Tyagi on Wednesday.

Speaking at IESA Vision Summit, Tyagi said although the consumption of semiconductors may grow to USD 27 billion in 2022, but only 10 per cent of those semiconductors were actually procured in India. “That's a cause of concern and as an IESA and industry we all need to work to improve the situation. This can be improved if we focus on electronics system design and manufacturing in India," he said.

Addressing the event virtually, Minister of State for Electronics and IT, Rajeev Chandrasekhar, said that the government is likely to start approving proposals to set up electronic chip and display manufacturing plants in the country in next 30-60 days.

“There has been a tremendous progress in the development of the semiconductor ecosystem in the country in the last 8-9 months and the government has received proposals from five companies for setting up electronic chip and display manufacturing plants with investment of Rs 1.53 lakh crore,” Chandrasekhar said.

He said a great deal of interest is there in the industry and there are several proposals ranging from investment in wafer fabrication plants to silicon compounds to packaging and testing.

Vedanta Foxconn JV, IGSS Ventures, ISMC propose to set up electronic chip manufacturing plants with USD 13.6 billion investment and have sought support of USD 5.6 billion from the Centre under the Rs 76,000 crore Semicon India Programme.

"State governments have shown some tremendous amount of alacrity. State governments like Gujarat, Karnataka have shown tremendous proactive response to looking at this very new opportunity, an opportunity for growth, and job creation, investments and innovation," he added.

This year, India expects to cross over USD 15 billion. The government has set a target of USD 300 billion of manufacturing by 2025 for electronics sector.  (KNN Bureau)