Global Firms Urged to Tap India's Display Manufacturing Boom
India is poised for a significant leap in local display manufacturing, offering a golden opportunity for global companies to diversify their display supply chains beyond current geographies, industry leaders announced. The Indian display market demand is expected to rise to $60 billion by 2025, with the domestic display manufacturing industry projected to grow at a remarkable 29.5 percent CAGR. This surge is driven by increased local production of mobile phones, TVs, and IT hardware products.
Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA), highlighted the substantial support from the India Semiconductor Mission (ISM), which offers a 50 percent capex support on a pari-passu basis, further bolstered by state government incentives. Despite these incentives, the industry has yet to progress beyond display assembly, which Mohindroo identifies as a major concern.
Displays constitute a significant 15-20 percent of the Bill of Materials (BoM), comparable to other critical components like logic and memory semiconductors. Despite being the world’s third-largest consumer of display products, accounting for 7 percent of global revenue, India's domestic production remains minimal. This gap presents a unique opportunity for international companies to diversify their supply chains while complementing domestic demand and enabling exports from India.
To support the development of a robust display manufacturing ecosystem, the AMOLED Research Center (ARC) has been established at IIT-Madras. The center aims to develop next-generation AMOLED displays for smartphones, tablets, watches, and wearables. Funded by the Ministry of Electronics and Information Technology (MeitY), the Defense Research and Development Organization (DRDO), and Tata Sons, the ARC represents a critical step in advancing India’s display technology capabilities.
During the ‘SID Display Week’ in the US, S Krishnan, Secretary of MeitY, addressed the forum virtually, emphasizing the government’s fiscal support of 50 percent capex on a pari-passu basis for establishing display fabs in India. Harit Doshi, Secretary of the Society of Information Display (SID) and CEO of Omniply Technologies, highlighted the conducive policy framework in India designed to attract international investors to the display manufacturing sector.
“These targeted efforts aim to cultivate tangible investment opportunities and propel India to the forefront of display technology development”, said Mohindroo. With strategic investments and policy support, India is well-positioned to become a key player in the global display manufacturing industry, meeting both domestic and international demands.
