Report Overview

The semiconductor materials market in the India region is experiencing significant growth during the projected period. One of the important factors driving the growth of the semiconductor materials market in India is the rising application of semiconductor materials in various end-use industries. Furthermore, increasing signs of the agreement for the establishment of new semiconductor units in India will likely drive market growth in the upcoming years.

India Semiconductor Materials Market - Industry Trends & Forecast Report, 2028

India Semiconductor Materials Market size was estimated at USD 40.66 billion in 2022. During the forecast period between 2023 and 2029, the India Semiconductor Materials Market size is projected to grow at a CAGR of 22.65% reaching a value of USD 167.85 billion by 2029. One of the important factors driving the growth of the semiconductor materials market in India is the rising application of semiconductor materials in various end-use industries.  Furthermore, increasing signs of the agreement for the establishment of new semiconductor units in India will likely drive market growth in the upcoming years. For instance, in September 2022, Micron Technology Inc, located in the United States, signed a Memorandum of Understanding (MoU) with the Gujarat government to establish a Rs 22,500-crore semiconductor unit in Sanand, near Ahmedabad. This is Gujarat's second Memorandum of Understanding with a semiconductor company. In September 2022, the state government signed a similar Memorandum of Understanding with the Foxconn-Vedanta joint venture to establish a Rs 1.54-lakh crore plant in Gujarat. Even though the corporation chose Dholera SIR for the unit, the project has yet to take off because formal sanction from the Central government is pending. The establishment of these semiconductor units has the potential to contribute to the growth and development of the India semiconductor materials market by creating employment opportunities, enhancing the domestic supply chain, and fostering technological advancements in the sector.

India Semiconductor Materials Market – Overview

India Semiconductor Materials Market

Semiconductor materials are substances that have unique electrical properties that allow them to control and manipulate the flow of electrical current. The most commonly used semiconductor material is silicon, which is widely used in the production of electronic components and integrated circuits. Other semiconductor materials include compounds like gallium arsenide, gallium nitride, and indium phosphide, each with specific properties suited for different applications. These materials are essential for the development of electronic devices such as transistors, diodes, LEDs, and microchips, enabling the advancement of technologies in areas such as telecommunications, computing, consumer electronics, automotive, and more. Semiconductor materials are critical in enabling the miniaturization, efficiency, and performance of electronic devices that we rely on in our daily lives.

Growth Drivers

Rising demand for consumer electronics goods

The rising demand for consumer electronics goods is indeed a significant driver for the growth of the India semiconductor materials market. According to the latest report, in 2021, the India consumer electronics industry was valued at Rs 5,363.70 billion. However, it is predicted to reach Rs 12,898.89 Bn by 2027, growing at a compound annual growth rate (CAGR) of around 15.77% between 2022 and 2027. Moreover, India has witnessed a surge in consumer electronics consumption, driven by factors such as increasing disposable income, growing urbanization, and the widespread adoption of digital technologies. Consumer electronics goods, including smartphones, tablets, laptops, televisions, and home appliances, rely heavily on semiconductors and semiconductor materials for their functioning. These materials are essential components in the manufacturing of integrated circuits, microchips, and other electronic components that power and enable the functionality of these devices. As the demand for consumer electronics goods continues to rise, the need for semiconductor materials also increases. This drives the growth of the India semiconductor materials market

Restraints

Limited domestic manufacturing capabilities

Limited domestic manufacturing capabilities in India have been a significant barrier to the growth of the semiconductor material market. The heavy reliance on imports creates several challenges that impede market expansion. Firstly, it leads to increased costs due to transportation, duties, and taxes, making semiconductor materials more expensive for businesses. This, in turn, affects the affordability and accessibility of these materials, hindering their widespread adoption across various industries. Secondly, the dependence on imports exposes the Indian market to supply chain vulnerabilities, as any disruptions in global trade or geopolitical tensions can cause shortages and delays in the availability of semiconductor materials. The COVID-19 pandemic highlighted this vulnerability, with semiconductor shortages impacting industries such as automotive and consumer electronics. Additionally, limited domestic manufacturing capabilities hinder the country's ability to control its supply chain and ensure a consistent and reliable flow of semiconductor materials. The lack of infrastructure, such as advanced fabrication facilities and clean rooms, further restricts the establishment of a robust semiconductor environment in India. These factors are likely to hamper the market growth in the coming years.

Impact of COVID-19 on the India Semiconductor Materials Market

The COVID-19 pandemic had an intense impact on the India semiconductor materials market, primarily through widespread supply chain disruptions. As the virus spread globally, various countries imposed lockdowns and restrictions, causing temporary closures and reduced production capacity of semiconductor manufacturing facilities. This disruption significantly affected the supply of semiconductor materials to India, leading to shortages and delays. During the pandemic, there was an upsurge in demand for electronics and digital gadgets, which worsened supply chain issues. With limited domestic manufacturing capabilities, India heavily relies on imports for semiconductor materials, making it more vulnerable to global supply chain disruptions. The shortage of materials and delayed deliveries affected multiple industries, including automotive, consumer electronics, and telecommunications, hampering their production and growth. To mitigate the impact, companies and manufacturers had to explore alternative supply sources and adjust their production schedules. The COVID-19 pandemic highlighted the importance of building resilient domestic semiconductor manufacturing capabilities in India to reduce dependency on imports and ensure a stable supply chain for the future.

 India Semiconductor Materials Market

Segmental Coverage

India Semiconductor Materials Market: By Materials

Based on materials, the market is segmented into silicon carbide, gallium manganese arsenide, copper indium gallium selenide, molybdenum disulfide, and bismuth telluride. The silicon carbide segment is expected to hold the majority shares in India semiconductor materials market. The silicon carbide segment is projected to hold the majority share in the Indian semiconductor materials market due to its superior properties and increasing demand for power electronics devices. Silicon carbide offers advantages such as high thermal conductivity, high breakdown voltage, and high-temperature operation, making it suitable for applications like electric vehicles, renewable energy systems, and industrial automation. The increasing establishment of the SiC fabrication unit in India is expected to drive segment growth. According to 2021, data provided by Electronic Media, Silicon Power Corporation, headquartered in Malvern, Pennsylvania, has established a subsidiary, the SiC fabrication unit, in Halol, Gujarat, India, creating numerous chances for the Indian electronics industry. The SiC factory, inaugurated by Mr. Saurabh Gaur, MEITY Joint Secretary, is India's first commercial fabrication unit of its sort. This establishment of the SiC fabrication unit is expected to fuel the significant growth of the silicon carbide segment in the India semiconductor materials market, leading to advancements in sectors such as power electronics, automotive, renewable energy, and more.

India Semiconductor Materials Market: By Application

Based on application, the market is segmented into fabrication and packaging. The packaging segment is likely to hold a significant market share in the India semiconductor materials market as compared to the other application segment. With the continuous advancements in technology and the increasing demand for electronic devices, efficient and reliable packaging solutions have become imperative. This segment's dominance is primarily attributed to the escalating adoption of consumer electronics like smartphones, tablets, and wearable devices, which require compact and high-performance semiconductor packages. Moreover, the rapid growth of emerging technologies such as the Internet of Things (IoT) and Artificial Intelligence (AI) further amplifies the significance of the packaging segment. The proliferation of IoT devices necessitates smaller form factor packages capable of accommodating multiple functionalities, while AI-driven applications demand efficient packaging solutions to optimize performance. These factors collectively contribute to the packaging segment's substantial market share in the Indian semiconductor materials market.

India Semiconductor Materials Market: By Country

Baes on region, the India semiconductor materials market is segmented into North India, South India, East India, and West India. South India segment is expected to grow significantly in the India semiconductor materials market during the projected period due to its emergence as a prominent hub for semiconductor manufacturing, research, and development. With cities like Bengaluru, Chennai, and Hyderabad serving as technology centers, the region attracts significant investments from semiconductor companies and fosters collaboration between academia and industry. South India's strong ecosystem, skilled talent pool, supportive government policies, and well-developed infrastructure create a favorable environment for semiconductor companies, leading to the anticipated growth of the South India segment in the semiconductor materials market.

Competitive Landscape

The India Semiconductor Materials Market is highly competitive, with all the players continually competing to gain a larger market share. The key players are Reliance Industries Limited, Tata Chemicals Limited, Wacker Metroark Chemicals Pvt. Ltd., Sumitomo Chemical India Pvt. Ltd., Merck India Pvt. Ltd., JSR Corporation India Pvt. Ltd., Dow India, Shin-Etsu Chemicals India Pvt. Ltd., Entegris India Pvt. Ltd., Huntsman International (India) Pvt. Ltd., and other prominent players.

Recent Development:

• March 2023: Purdue University announced a game-changing deal to become the government of India's flagship academic partner and collaborator. Purdue is now recognized as a key collaborator with India and the India Semiconductor Mission (ISM) in skilled workforce development as well as cooperative research and innovation in the rapidly growing sectors of semiconductors and microelectronics. Purdue signed the deal) in the presence of Honourable Minister Ashwini Vaishnaw, who is in charge of Railways, Communications, Electronics, and Information Technology in India and also manages the country's semiconductors program.

• December 2021: The government unveiled a $10 billion (about Rs 76,000 crore) program to encourage semiconductor production in India. The central government wants to grant incentives totaling 50% of the entire cost of the project under the scheme announced in 2021. More incentives are being offered by the governments of the states where the units will be built, bringing the total value of subsidies and incentives to around 70-75% of the overall project cost.

Scope of the Report

Attributes	Details
Years Considered	Historical Data – 2019–2022
	Base Year – 2022
	Estimated Year – 2023
	Forecast Period – 2023–2029
Facts Covered	Revenue in USD billion
Product/ Service Segmentation	Materials, Application, End User, Region
Key Players	Reliance Industries Limited, Tata Chemicals Limited, Wacker Metroark Chemicals Pvt. Ltd., Sumitomo Chemical India Pvt. Ltd., Merck India Pvt. Ltd., JSR Corporation India Pvt. Ltd., Dow India, Shin-Etsu Chemicals India Pvt. Ltd., Entegris India Pvt. Ltd., Huntsman International (India) Pvt. Ltd. and other prominent players.

 

By Material

• Silicon Carbide

• Gallium Manganese Arsenide

• Copper Indium Gallium Selenide

• Molybdenum Disulfide

• Bismuth Telluride

By Application

• Fabrication

1. Silicon Wafers

2. Electronic gases

3. Photomasks

4. Photoresist ancillaries

5. CMP Materials

6. Photoresists

7. Wet chemicals

8. Others

• Packaging

1. Leadframes

2. Organic Substrates

3. Ceramic Packages

4. Encapsulation Resins

5. Bonding Wires

6. Die-Attach Materials

7. Others

By End User

• Consumer Electronics

• Manufacturing

• Automotive

• Energy and Utility

• Others

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Semiconductor Materials Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising demand for consumer electronics goods
         2. Growing automotive industry
         3. Increasing semiconductor design and manufacturing activities
      2. Restraints
         1. Limited domestic manufacturing capabilities
         2. High initial investment costs
      3. Opportunity
         1. Rise in government's focus on promoting domestic manufacturing,
         2. Digital transformation and IoT adoption
      4. Challenges
         1. High dependency on imports
         2. Rapid technological advancements and obsolescence
         3. Unlicensed individuals performing surgeries
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Semiconductor Materials Market Overview
   1. Market Size & Forecast, 2019-2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Material
         1. Silicon Carbide
         2. Gallium Manganese Arsenide
         3. Copper Indium Gallium Selenide
         4. Molybdenum Disulfide
         5. Bismuth Telluride
      2. By Application
         1. Fabrication
            1. Silicon Wafers
            2. Electronic gases
            3. Photomasks
            4. Photoresist ancillaries
            5. CMP Materials
            6. Photoresists
            7. Wet chemicals
            8. Others
         2. Packaging
            1. Leadframes
            2. Organic Substrates
            3. Ceramic Packages
            4. Encapsulation Resins
            5. Bonding Wires
            6. Die-Attach Materials
            7. Others
      3. By End User
         1. Consumer Electronics
         2. Manufacturing
         3. Automotive
         4. Energy and Utility
         5. Others
      4. By Region
         1. North India
         2. South India
         3. East India
         4. West India
5. North India Semiconductor Materials Market
   1. Market Size & Forecast, 2019-2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Material
      2. By Application
      3. By End User
6. South India Semiconductor Materials Market
   1. Market Size & Forecast, 2019-2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Material
      2. By Application
      3. By End User
7. East India Semiconductor Materials Market
   1. Market Size & Forecast, 2019-2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Material
      2. By Application
      3. By End User
8. West India Semiconductor Materials Market
   1. Market Size & Forecast, 2019-2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Material
      2. By Application
      3. By End User
9. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. India Semiconductor Materials Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
10. Impact of Covid-19 on India Semiconductor Materials Market
11. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. Reliance Industries Limited
    2. Tata Chemicals Limited
    3. Wacker Metroark Chemicals Pvt. Ltd.
    4. Sumitomo Chemical India Pvt. Ltd.
    5. Merck India Pvt. Ltd.
    6. JSR Corporation India Pvt. Ltd.
    7. Dow India
    8. Shin-Etsu Chemicals India Pvt. Ltd.
    9. Entegris India Pvt. Ltd.
    10. Huntsman International (India) Pvt. Ltd.
    11. Other Prominent Players
12. Key Strategic Recommendations
13. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

 

*Financial information of case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

 

List of Figures

 

Figure 1       India Semiconductor Materials Segmentation

Figure 2       India Semiconductor Materials Market Value Chain Analysis       

Figure 3       Company Market Share Analysis, 2022

Figure 4       India Semiconductor Materials Market Size, By Value (USD Million), 2019-2029         

Figure 5       India Semiconductor Materials Market Share, By Material, By Value, 2019-2029         

Figure 6       India Semiconductor Materials Market Share, By Application, By Value, 2019-2029         

Figure 7       India Semiconductor Materials Market Share, By End User, By Value, 2019-2029         

Figure 9       North India Semiconductor Materials Market Size, By Value (USD Million), 2019-2029 

Figure 10     North India Semiconductor Materials Market Share, By Material, By Value, 2019-2029 

Figure 11     North India Semiconductor Materials Market Share, By Application, By Value, 2019-2029 

Figure 12     North India Semiconductor Materials Market Share, By End User, By Value, 2019-2029 

Figure 13     South India Semiconductor Materials Market Size, By Value (USD Million), 2019-2029 

Figure 14     South India Semiconductor Materials Market Share, By Material, By Value, 2019-2029 

Figure 15     South India Semiconductor Materials Market Share, By Application, By Value, 2019-2029 

Figure 16     South India Semiconductor Materials Market Share, By End User, By Value, 2019-2029 

Figure 17     East India Semiconductor Materials Market Size, By Value (USD Million), 2019-2029         

Figure 18     East India Semiconductor Materials Market Share, By Material, By Value, 2019-2029 

Figure 19     East India Semiconductor Materials Market Share, By Application, By Value, 2019-2029 

Figure 20     East India Semiconductor Materials Market Share, By End User, By Value, 2019-2029

Figure 21     West India Semiconductor Materials Market Size, By Value (USD Million), 2019-2029 

Figure 22     West India Semiconductor Materials Market Share, By Material, By Value, 2019-2029 

Figure 23     West India Semiconductor Materials Market Share, By Application, By Value, 2019-2029 

Figure 24     West India Semiconductor Materials Market Share, By End User, By Value, 2019-2029 

 

List of Tables

 

Table 1        India Semiconductor Materials Segmentation

Table 2        India Semiconductor Materials Market Value Chain Analysis       

Table 3        Company Market Share Analysis, 2022

Table 4        India Semiconductor Materials Market Size, By Value (USD Million), 2019-2029         

Table 5        India Semiconductor Materials Market Share, By Material, By Value, 2019-2029         

Table 6        India Semiconductor Materials Market Share, By Application, By Value, 2019-2029         

Table 7        India Semiconductor Materials Market Share, By End User, By Value, 2019-2029         

Table 9        North India Semiconductor Materials Market Size, By Value (USD Million), 2019-2029 

Table 10      North India Semiconductor Materials Market Share, By Material, By Value, 2019-2029 

Table 11      North India Semiconductor Materials Market Share, By Application, By Value, 2019-2029          

Table 12      North India Semiconductor Materials Market Share, By End User, By Value, 2019-2029 

Table 13     South India Semiconductor Materials Market Size, By Value (USD Million), 2019-2029 

Table 14      South India Semiconductor Materials Market Share, By Material, By Value, 2019-2029 

Table 15      South India Semiconductor Materials Market Share, By Application, By Value, 2019-2029          

Table 16      South India Semiconductor Materials Market Share, By End User, By Value, 2019-2029 

Table 17      East India Semiconductor Materials Market Size, By Value (USD Million), 2019-2029         

Table 18      East India Semiconductor Materials Market Share, By Material, By Value, 2019-2029 

Table 19      East India Semiconductor Materials Market Share, By Application, By Value, 2019-2029 

Table 20      East India Semiconductor Materials Market Share, By End User, By Value, 2019-2029 

Table 21       West India Semiconductor Materials Market Size, By Value (USD Million), 2019-2029 

Table 22      West India Semiconductor Materials Market Share, By Material, By Value, 2019-2029 

Table 23      West Semiconductor Materials Market Share, By Application, By Value, 2019-2029         

Table 24      West India Semiconductor Materials Market Share, By End User, By Value, 2019-2029 

Table 25      Reliance Industries Limited Company Overview

Table 26      Reliance Industries Limited Financial Overview

Table 27      Tata Chemicals Limited Company Overview

Table 28      Tata Chemicals Limited Financial Overview

Table 29      Wacker Metroark Chemicals Pvt. Ltd. Company Overview

Table 30      Wacker Metroark Chemicals Pvt. Ltd. Financial Overview

Table 31      Sumitomo Chemical India Pvt. Ltd. Company Overview

Table 32      Sumitomo Chemical India Pvt. Ltd. Financial Overview

Table 33      Merck India Pvt. Ltd. Company Overview

Table 34      Merck India Pvt. Ltd. Financial Overview

Table 35      JSR Corporation India Pvt. Ltd. Company Overview

Table 36      JSR Corporation India Pvt. Ltd. Financial Overview

Table 37      Dow India Company Overview

Table 38      Dow India Financial Overview

Table 39      Shin-Etsu Chemicals India Pvt. Ltd. Company Overview

Table 40      Shin-Etsu Chemicals India Pvt. Ltd. Financial Overview

Table 41      Entegris India Pvt. Ltd. Company Overview

Table 42      Entegris India Pvt. Ltd. Financial Overview

Table 43      Huntsman International (India) Pvt. Ltd. Company Overview

Table 44      Huntsman International (India) Pvt. Ltd. Financial Overview