$100 billion worth chips needed for India’s $300 billion electronics production goal by FY26

New Delhi: As India aims to reach $300 billion electronics production by FY26, it will trigger demand for semiconductors worth $90-$100 billion, largely driven by domestic mobile manufacturing — an opportunity the country must tap.

The current electronics manufacturing at nearly $103 billion translates to a semiconductor requirement of $26-$31 billion, considering the industry average of 25 to 30 per cent of chip components in any electronics product’s bill of material (BOM).

“With the expected rise in electronics production ($300 billion by 2026), this number is set to rise substantially to $90-$100 billion,” according to the data by the India Cellular and Electronics Association (ICEA).