New Delhi: India’s semiconductor market, which includes a robust chip design and engineering sector, is tipped to cross $100 billion in valuation by 2030, Union minister of state for information technology Jitin Prasada said in Parliament on Wednesday.

Initiatives that will help the domestic semiconductor market reach the milestone included production-linked incentive (PLI) schemes for setting up chip fabs (fabrication plants), display fabs, chip testing and packaging plants, a design-linked incentive (DLI) scheme to further boost local chip design, and finally, promotion of local component manufacturing and domestic manufacturing of “large scale electronics," he added.

Further, efforts to modernize the Centre-owned Semi-Conductor Laboratory in Mohali are also underway—which could further add to this milestone.

Prasada stated that from a market value of $38 billion in calendar year 2023, the semiconductor market will grow to $109 billion by 2030—suggesting a 16% compounded annual growth rate of the industry. Key to these plans will be the upcoming semiconductor fab, being set up by Tata Electronics in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) in Dholera, Gujarat—which the Centre has projected will be ready for operations by 2027, and will produce 3 billion chips annually following a net investment quantum of $10.9 billion, including Centre- and state-backed incentives.