India semiconductor sector faces long road of steady growth, says new study

UPDATE - follow-up to India's semiconductor ecosystem likely to see gradual value creation over next 3-5 years: Report:

What Happened

India's chip manufacturing network will pass through plant setup, buyer testing, and stable output stages over the next three to five years. Local sourcing of regular supplies and advanced packaging will come later, a new study by 360 ONE Capital shows. Total chip demand in the country is set to grow from about USD 56 billion in 2025 to over USD 117 billion by 2030, which means a yearly growth rate of roughly 16 percent.

Business Scope

Twelve cleared projects under the India Semiconductor Mission bring in over USD 18 billion of funds. The wider ISM 2.0 system could pull in more than USD 35 billion in extra investment. Early money gains will likely show up in building work, utility services, electronics making, parts, engineering, factory tools, and machine support ahead of direct factory earnings.

Next Steps

The study points out that factories are coming up before proven buyer demand and local supply depth exist, so proper work matters more than simple project announcements. Investors should look at this theme over a ten to fifteen year span instead of expecting quick profit cycles. Key milestones to watch include plant construction, testing processes, better yields, buyer approval, scaling up volume, local parts content, and the final product mix.