Chennai: With upcoming facilities, India is expected to meet 60% of semiconductor demand through local production by 2035, from 10% at present, according to a report. This is driven by expansion of assembly, testing, marking and packing (ATMP) facilities, mature chip fabrication for automotive, power and industrial applications and launch of some advanced semiconductor fabrication, Deloitte India said in a report. India is expected to reduce its import dependency for semiconductor products and components by at least 40 percentage points by 2030 through ecosystem-led capacity and targeting localisation across key segments, it said. However, the progress depends on developing talent with skilling and organisation readiness efforts in the sector, Deloitte added. India’s semiconductor market is projected to reach $120 billion by 2030 and $300 billion by 2035, with 20% CAGR, driven by electronics and mobile phone manufacturing, automotive, data centres, and AI demand. Mobile phones and wearables will remain the largest segment, with demand increasing from $24 billion to $100 billion over a decade. The semiconductor industry in India is predicted to attract around $120 billion in investments by 2035, with $50 billion over the next five years. Out of this, $30 billion to $35 billion will be toward setting up fab and OSAT operations facilities, and $15 billion to $20 billion will be areas like input materials, gases and chemicals, and manufacturing. Between 2030 and 2035, an additional $75 billion to $80 billion investment for mature nodes, in front-end wafer fabrication and advanced display manufacturing, among other things, it noted.
