India will be the fastest-growing semiconductor consumption market in the world with annual domestic demand expected in excess of $110 billion by the end of the decade, minister of state for IT & electronics Rajeev Chandrasekhar has said, adding that top global chipmakers have evinced “serious interest” in bringing in large-scale investments into the category.
Chandrasekhar – who recently met Intel global CEO Pat Gelsinger and top functionaries of other semiconductor giants – said that “advanced discussions” are on to attract investments for India.
“We are in advanced discussions, but please remember that this is not like instant coffee. The companies have been positive in their conversations around semiconductor investments in India, but will carry out their own feasibility and due diligence before committing confirmed investments,” Chandrasekhar told TOI.
The minister’s comments come a day before the first Semicon India conference that will be inaugurated by PM Narendra Modi and will be held in Bangalore from Friday. India had in December last year announced a $10-billion (Rs 76,000-crore) incentive package for kick-starting semiconductor production in the country. The move came at a time when shortages of chips have hit industrial production across automobiles, electronics and other technology-led sectors.
Chandrasekhar said demand for semiconductors will come from sectors such as consumer electronics & mobile phones, automobiles, computers & data centres, IoT devices and the upcoming 5G ecosystem. “India will provide a massive captive consumption market for semiconductor companies, and against the current $24 billion, local demand will be to the tune of $80 billion by 2025, and over $110 billion by 2030. Apart from domestic needs, the companies can also target exports, giving them huge economies of scale and strong business opportunities.” MSN