India Semiconductor Materials Market Overview, 2029

India semiconductor materials market is characterized by a strong culture of innovation and strategic shift towards production in advanced technologies. Traditionally established on the strength of its software development and IT services, India for the past decade has led the race in masking semiconductor manufacture and design-by itself and under the government's elaborate campaign 'Making in India' that seeks to bring in domestic production capabilities to reduce dependency on imported technologies.". In India, the penetration of the semiconductor materials in all these sectors has increased significantly. Increased use of semiconductor components like microprocessors, memory chips, and sensors had been seen in industries such as telecommunications, automotive electronics, consumer electronics, and health. The growth in pressure here was due to the wide proliferation of smartphones across the globe, including in this country. The market demand for the semiconductor technologies gets a boost through increased use of the internet, quick urbanization, and increasing middle-class people with more disposable income. Environmental sustainability has picked up in the Indian semiconductor manufacturing industry. There is a continuous drive towards green manufacturing, which basically means processing using eco-friendly protocols, energy-efficient technologies, and sustainable materials. The setup of semiconductor fabs and manufacturing facilities increasingly incorporates plant and equipment driven by renewable energy sources like solar. This will reduce the carbon footprint of the industry and be in line with the environment worldwide. India provides many attractive investment and growth opportunities in semiconductor materials. Pro-foreign investment governmental policies, such as favorable FDI and general tax laws, along with regulations and infrastructural support, proactively encourage international semiconductor firms to set up or expand their operations in the country. The venture capital firms and investors actively support the cause of semiconductor start-ups and technology ventures through funding initiatives and accelerators. The ecosystem becomes a playground for entrepreneurial innovation, particularly topping-up the ability to commercialize cutting-edge semiconductor technologies in India.

According to the research report "India Semiconductor Materials Market Overview, 2029," published by Bonafide Research, the India Semiconductor Materials market is anticipated to add to more than USD 2 Billion by 2024–29. The market for semiconductor materials in India remains vibrant with active startups, a powerful ecosystem for innovation, and an emphasis on emerging technologies. The startup ecosystem in India across semiconductor designs, testing, and manufacturing is abuzz with New Innovations. For the Indian startup ecosystem, incubation, acceleration, and technology parks are providing important support for the evolving of the niche technologies and entrepreneurship required to make a significant contribution to the semiconductor ecosystem of this country. The use of more advanced applications in the Internet of Things, Artificial Intelligence, and Electric Vehicles through different media ways is emerging in India with the aid of semiconductor technologies. Semiconductor sensors and devices are the backbones for assorted applications in this area that facilitate connectivity and analytics in applications such as smart cities, agriculture, health, and industrial automation. Artificial intelligence-driven applications in India require advanced semiconductor solutions to enable efficient processing in support of advancements in machine learning, robotics, and autonomous systems. The transition toward electric mobility is increasing the demand for more and more semiconductor technologies for EV batteries, power electronics, and charging infrastructure. number of proactive policies and initiatives of the government provide further back up to the semiconductor materials' industry. Policies like the National Policy on Electronics and the recent PLI scheme underpin the cause of increasing domestic manufacturing of semiconductors, components, and electronic products. Infrastructure-related projects in semiconductor clusters and electronic manufacturing not only boost and support the setups but also have developed a conducive atmosphere for semiconductor firms. Upskilling programs are fueling the capabilities for the workforce in semiconductor manufacturing, design, and research. India has been in collaborations with international semiconductor companies, institutions, and governments for technology transfer, collaborative research, and exchange of knowledge. Such collaborations, especially with Japan, the United States, and many European countries, enable Indian firms to source advanced technologies, get new investment, and expand their presence in international markets.

Development of the markets for semiconductor materials in India combines significant activities in fabrication, packaging, and applications. Even though traditionally the country has been strong in the area of their application, new emphasis is put on developing local capabilities in the areas of fabrication and packaging in order to meet the increasing domestic demand and to make India a name as a player on the global semiconductor stage. On the fabrication front, India is trying to develop its domestic fabrication capacity. Though semiconductors have not yet been integrated into the country, schemes like the India Semiconductor Mission- ISM shall attract investment for the setup of semiconductor fabrication plants in the country. The government's push, along with growing interest from the semiconductor players all over the world, points to a bright future for the fabrication segment of the country. Packaging is one of the up-and-coming variables of the Indian semiconductor materials market. There are a number of companies operating in the country offering semiconductor assembly, testing, and packaging work. The companies offer support related to semiconductor assembly, testing, and packaging for automotive, telecommunication, consumer electronic, and other industries. For example, Tessolve, a Bengaluru-based company, offers semiconductor packaging, testing, and engineering related services to its clients across the globe. This growth is supported by the growing demand for electronics coupled with government initiatives for promoting local manufacturing and value addition. Application of semiconductors is the leading segment of the Indian semiconductor material market. India has a large and growing electronics industry where semiconductors are used in a wide range of products. This ranges from consumer electronics like smartphones, appliances, to industrial and automotive applications. It's also a IT services and software development hub, which is again driving the demand for semiconductors. The Indian government's Digital India initiative and emerging technologies like IoT and AI are going to be key growth drivers in the application of semiconductors.

The Indian semiconductor materials industry grows fast due to a wide range of end-user sectors like consumer electronics, telecommunication, manufacturing industries, automotive, energy and utility, etc. Due to the constant acceleration of India in the areas of industrial and technological growth, semiconductors will be in higher demand in all sectors of end-user. The consumer electronics segment is a very large end-user segment in the Indian semiconductor market. This segment is propelled by the exponentially high demand for smartphones, laptops, tablets, and a plethora of other electronic gadgets within the immense and growing population of the country. Growth of the middle class and increasing disposable income act as additional drivers for this segment's growth. The telecommunications segment is equally a huge end-user. This could be due to the fact that the government of India has been focusing on digital connectivity, broadband reach, and 5G that all these need semiconductors. Consistent expansion of the telecommunications infrastructure of the country and increasing internet users are factors supporting this segment's growth. The automotive sector is actually a very emerging end-user in the Indian semiconductor market. Considering that the Indian automotive industry is showing unrelenting boom and increasing adoption of technologies such as electric vehicles, safety systems, and infotainment, demand for semiconductors is expected to grow manifold. The manufacturing sector has also emerged as a significant end-user of semiconductors with the implementation of Industry 4.o technologies such as industrial automation, robotics, machine to machine communication by the industry which was propelled by the government's "Make in India" campaign.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Semiconductor Materials market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation



By Application
• Fabrication
• Packaging

By End-User
• Consumer Electronics
• Telecommunication
• Manufacturing
• Automotive
• Energy and Utility
• Others

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Semiconductor Materials industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.