Indian semiconductor addressable mkt: USD 30bn, smartphones acct USD 10bn

India Cellular & Electronics Association (ICEA) has estimated that the Indian the growing electronics manufacturing, estimated at USD 103 billion should translate to a semiconductor requirement of USD 26 to USD 31 billion.

And taking into consideration, the smartphones Bill of Materials (BoM) last year, the total semiconductor accounted for around 25-30% of a typical smartphone’s BoM, equates to approximately USD 9-10 billion in semiconductor demand just for the smartphone segment in India in FY 2022-23.

No doubt, not all of the semiconductors represent immediate opportunities for India. For e.g., Processor Chips, which are Advanced Chips specifically for High end phones, may require some time before India can produce them at a competitive level. However, there is a commercial viability in fabricating Processor Chips for entry-level smartphones in India. This could be a consideration for the New Semiconductor Fabs.

India’s smartphone consumption stood at approximately 150 million units in 2023. Industry estimates suggest that indigenizing chips for just 10% of this market i.e., 15-18 million for entry- level smartphones, makes strong commercial sense in supporting the Indian domestic fab unit. With a monthly output of around 1.5 million unit (10-14 nm) of chipsets – assuming 15,000 wafers of 300mm at 70% yield from a fab, and considering the number of die per wafer to be 148 – the annual output could be approximately 18 million chipsets.

Also read,

ICEA unveils seminal report on India’s semiconductor sector

The challenges & opportunities in Indian semiconductor industry, ICEA

CT Bureau