EY-IESA calls for Indian-designed products to build demand for domestic chips
India should pair semiconductor fabrication with locally designed and manufactured products, including consumer electronics, to capture more value domestically, according to an EY-IESA report. The report projects India could become a US$200 billion semiconductor-consumption market by 2035.
What happened
EY-IESA urges India to pair domestic chip production with locally designed and manufactured products, including consumer electronics, to increase domestic value capture and build demand for indigenous semiconductors.
Key facts
- USD 200 billion semiconductor consumption market by 2035
Why this matters
Corporate-development teams should evaluate partnerships or acquisitions across Indian chip design, component supply and electronics manufacturing to secure demand-linked advantages as the local semiconductor value chain matures.
What to watch
- New semiconductor or electronics policy linking incentives to domestically designed end products or local-content thresholds.
- Government procurement rules favoring India-designed or India-manufactured electronics.
- Announced supply agreements between Indian device brands/EMS firms and domestic chip-design, OSAT, or fab projects.
- Growth in local sourcing of PCBs, displays, camera modules, passive components, batteries, and power-management chips.
- Capital expenditure announcements by electronics manufacturing services providers and component makers in India.
- Evidence that domestic semiconductor projects secure anchor customers, technology partners, water/power infrastructure, and export commitments.
- Changes in import duties on finished electronics, components, and semiconductor inputs.
- Consumer-electronics brands increase local design, sourcing, and manufacturing commitments to qualify for incentives and government procurement.
- EMS manufacturers pursue partnerships with Indian chip-design houses, OSAT providers, display makers, battery suppliers, and component distributors.
- State and central governments broaden production-linked incentives toward component localization, design-linked rewards, and domestic-content requirements.
- Large buyers in telecom, appliances, automotive, defense, and public infrastructure seek longer-term supply agreements with locally assembled electronics suppliers.
- Global semiconductor firms expand Indian design centers and packaging/test partnerships before committing to large-scale wafer-fab capacity.