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Semiconductor and IT Hardware Sector Overview

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India’s Semiconductor and IT Hardware sector, valued at ₹3.5 trillion in 2023-24, is experiencing rapid growth driven by increased demand for electronics, government initiatives, and global supply chain realignments. The sector includes the manufacturing of chips, processors, consumer electronics, and electronic components. It plays a key role in India’s digital economy, supporting industries such as telecommunications, automotive, and consumer goods.

Why Invest in the Semiconductor and IT Hardware Sector

  • Digital Transformation: With India’s increasing reliance on digital technologies, the demand for semiconductors and IT hardware is growing exponentially.
  • Government Initiatives: The government's $10 billion Production-Linked Incentive (PLI) scheme for semiconductors and electronics aims to boost manufacturing and reduce dependency on imports.
  • Global Demand: The increasing global demand for semiconductors, especially with the rise in AI, IoT, and 5G technologies, offers a large export potential for India.

Incentives & Schemes

  • PLI Scheme for Semiconductors: ₹76,000 crore allocated under the PLI scheme to boost domestic semiconductor and display manufacturing.
  • National Policy on Electronics: Encourages investment in electronics manufacturing, including assembly, testing, and packaging.
  • Atmanirbhar Bharat Abhiyan: Promotes self-reliance in semiconductor manufacturing and aims to reduce India’s dependency on foreign suppliers.

Highlights

  • Semiconductor Manufacturing: India is aiming to become a global hub for semiconductor manufacturing by 2030, supported by government policies and foreign partnerships.
  • Market Growth: The semiconductor and IT hardware sector is projected to grow at a CAGR of 12% from 2024 to 2030.
  • Foreign Investment: India has attracted over $5 billion in FDI in the semiconductor and electronics sector in the last 5 years.

Semiconductor and IT Hardware Sector Data

Category Details
Market Size (2023-24) ₹3.5 trillion
PLI Scheme Allocation ₹76,000 crore for semiconductor and electronics manufacturing
Global Semiconductor Market Growt Projected at 8% CAGR (2024-2030)
Domestic Semiconductor Production Targeted ₹1.3 trillion by 2030
Semiconductor FDI $5 billion in the last 5 years
Export Potential Projected $50 billion by 2030
Market CAGR (2024-2030) 12%
Electronics Manufacturing Expected to become a $400 billion industry by 2030
Employment Over 5 million people
National Electronics Policy Targets Focus on $100 billion electronics export by 2025

Latest Figures and Progress

  • Market Size: The semiconductor and IT hardware sector is valued at ₹3.5 trillion in 2023-24, with a significant growth trajectory.
  • FDI: The sector has attracted over $5 billion in foreign direct investment over the past five years, showcasing strong international interest.

India’s Semiconductor and IT Hardware sector is positioned for robust growth, with supportive government initiatives, global demand, and significant investment creating an environment ripe for innovation and expansion.