India Integrated Circuits Import Market -- HS 8542 Trade Data & Price Trend (Q2 2025)

India Integrated Circuits Import (HS 8542) Key Takeaways

India’s integrated circuits imports under HS Code 8542 in Q2 2025 reveal a market dominated by high-volume, low-cost processors (60% share) alongside premium-priced memories, signaling a dual-tier product structure. The trade is highly volatile, peaking at $5.43B in May before plunging 22% in June, reflecting regulatory-driven uncertainty. Supply chain risks loom as 90% of import value hinges on a few key suppliers, while China Mainland and Taiwan account for over half of shipments, exposing dependency on concentrated sourcing. This analysis is based on cleanly processed customs data from the yTrade database for Q2 2025.

India Integrated Circuits Import (HS 8542) Background

What is HS Code 8542?

HS Code 8542 covers electronic integrated circuits, including processors, controllers, memories, and amplifiers. These components are critical for industries like consumer electronics, automotive, and telecommunications, driving consistent global demand. Their role in enabling advanced technologies ensures steady trade volumes worldwide.

Current Context and Strategic Position

India’s Integrated Circuits import landscape is shaped by tightening regulations, including anti-dumping duties on HS 8542 products and licensing requirements under the PLI scheme to boost local manufacturing [FreightAmigo]. Despite these measures, India remains the 2nd largest importer of these circuits, with shipments growing 19% year-on-year, reflecting robust demand. Strategic vigilance is essential for stakeholders navigating HS Code 8542 trade data, as policy shifts and compliance requirements continue to evolve.

India Integrated Circuits Import (HS 8542) Price Trend

Key Observations

In Q2 2025, the India Integrated Circuits Import trend under HS Code 8542 showed significant volatility, with values reaching $5.43 billion in May after a rise from $5.24 billion in April, but then dropping sharply to $4.25 billion in June. This quarter's performance highlights a peak followed by a substantial decline, reflecting underlying market adjustments.

Price and Volume Dynamics

The hs code 8542 value trend exhibited a rollercoaster pattern from January to June 2025, starting with a dip to $3.69 billion in February, recovering to $4.98 billion in March, and climbing through April and May before the June slump. The sequential growth from March to May suggests potential inventory builds or anticipatory buying in the electronics sector, common ahead of policy shifts, while the abrupt June drop indicates a market correction or destocking phase. This trajectory aligns with typical industry cycles where integrated circuits demand fluctuates with manufacturing schedules and regulatory anticipation.

External Context and Outlook

This volatility is largely driven by India's intensified regulatory framework for electronics imports, including import restrictions and licensing requirements under schemes like PLI to boost domestic production [FreightAmigo], alongside customs duties of 7.5% (EximGuru). These policies, aimed at curbing dumping and encouraging local manufacturing, have created uncertainty, leading to the observed swings in import values as businesses adapt to compliance demands and sourcing strategies.

India Integrated Circuits Import (HS 8542) HS Code Breakdown

Product Specialization and Concentration

According to yTrade data for India's HS Code 8542 imports in Q2 2025, the market is heavily concentrated on processors and controllers under sub-code 85423100, which accounts for over 60% of the import value. This product, described as electronic integrated circuits including processors and controllers, has a unit price of $1.37 per unit, significantly lower than the $9.48 per unit for memories under sub-code 85423200, indicating a clear specialization in high-volume, lower-value components. The memories sub-code, with its much higher price, represents a distinct, high-grade segment isolated from the main analysis due to its price anomaly.

Value-Chain Structure and Grade Analysis

The remaining sub-codes can be grouped into two categories: standard integrated circuits like amplifiers and other circuits with unit prices below $1 per unit, and parts with a moderate price of $2.13 per unit. This structure shows that India's import of HS Code 8542 is dominated by differentiated manufactured goods rather than fungible commodities, with a clear gradation from high-value memories to more common components.

Strategic Implication and Pricing Power

For market players, the high unit price of memories suggests stronger pricing power for suppliers of these specialized products, while the bulk of imports in processors and controllers may face more competitive pricing pressures. [FreightAmigo] reports import restrictions and duties, such as a 7.5% basic customs duty plus IGST, which could increase costs and necessitate strategic focus on compliance and sourcing efficiency for India's HS Code 8542 import activities.

Check Detailed HS Code 8542 Breakdown

India Integrated Circuits Import (HS 8542) Origin Countries

Geographic Concentration and Dominant Role

In Q2 2025, India's import of Integrated Circuits under HS Code 8542 is heavily concentrated, with CHINA MAINLAND dominating in quantity (55.72% share) and frequency (53.24% share), while CHINA TAIWAN leads in value (38.23% share). The disparity shows CHINA MAINLAND's quantity share exceeds its value share, indicating imports of lower-cost or bulk variants, possibly for mass production. High frequency from CHINA MAINLAND suggests frequent, small-lot shipments, typical for just-in-time supply chains in electronics. CHINA TAIWAN's higher value share relative to quantity points to premium, high-grade Integrated Circuits, likely advanced semiconductors.

Origin Countries Clusters and Underlying Causes

The origin countries cluster into three groups based on India's Integrated Circuits import data. The High-Yield Cluster includes CHINA TAIWAN, with high value share but lower volume, driven by its expertise in high-end chip manufacturing. The Volume/Hub Cluster consists of CHINA MAINLAND, SOUTH KOREA, and JAPAN, which have significant quantity shares, reflecting their roles as major electronics manufacturing hubs with cost-efficient production. The Transactional Cluster, featuring CHINA MAINLAND, MALAYSIA, and PHILIPPINES, shows high frequency shares, indicating frequent shipments for assembly or distribution, often due to geographic proximity and integrated supply chains in Asia.

Forward Strategy and Supply Chain Implications

India's heavy reliance on CHINA MAINLAND for Integrated Circuits imports creates supply chain risks, such as potential disruptions from geopolitical tensions or policy changes. Diversifying sourcing to countries like MALAYSIA or THAILAND could reduce dependency and enhance stability. According to [FreightAmigo], India imposes import duties and restrictions on electronics, which may incentivize shifting some procurement to avoid tariffs. The growth in HS Code 8542 shipments (FreightAmigo) underscores continued demand, but adapting to regulatory changes is crucial for sustainable sourcing strategies.

Table: India Integrated Circuits (HS 8542) Top Origin Countries (Source: yTrade)

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India Integrated Circuits (HS 8542) Suppliers Analysis

Supplier Concentration and Dominance

According to yTrade data, the India Integrated Circuits Import supplier market in Q2 2025 is highly concentrated. A small group of high-value, high-frequency suppliers dominates, accounting for 90.65% of the total import value. This group handles the vast majority of trade volume, making them the core of the supply chain.

Strategic Supplier Clusters and Trade Role

The profile of HS code 8542 suppliers indicates an intermediated market. The dominant cluster includes companies like RABYTE PTE LTD and NOKIA SOLUTIONS AND NETWORKS OY, which act as key traders or direct manufacturers. Other clusters include high-value, low-frequency suppliers such as FURI ENOK HONG KONG ELECTRONIC TECHNOLOGY CO, which likely represent specialized manufacturers, and low-value, high-frequency distributors like MOUSER ELECTRONICS that supply common components in bulk. A final group of low-value, low-frequency suppliers includes firms like RENESAS ELECTRONICS SINGAPORE PTE LTD, which may serve niche or custom orders.

Sourcing Strategy and Vulnerability

India's heavy reliance on a few high-value suppliers for integrated circuits creates strategic vulnerability, especially given increasing import restrictions and duties [FreightAmigo]. Diversifying sources among the lower-frequency manufacturer clusters could mitigate risks from regulatory changes or supply disruptions. The current structure favors efficiency but requires careful monitoring of policy shifts affecting electronics imports.

Table: India Integrated Circuits (HS 8542) Top Suppliers List (Source: yTrade)

Check Full Integrated Circuits Supplier lists

Action Plan for Integrated Circuits Market Operation and Expansion

Strategic Supply Chain Overview

The India Integrated Circuits Import market shows clear price drivers. Product specification is the primary factor. High-grade memories command a premium, while processors and controllers face competitive pricing. Contract volume with key suppliers also influences cost, given the high concentration of trade value among a few firms.

The Integrated Circuits supply chain implies an assembly hub role for India. Heavy reliance on CHINA MAINLAND for bulk components and CHINA TAIWAN for premium chips creates technology dependence. This structure increases vulnerability to geopolitical shifts and import policy changes, such as duties reported in hs code 8542 trade data. Supply security is a critical challenge.

Action Plan: Data-Driven Steps for Integrated Circuits Market Execution and Expansion

• Use hs code 8542 trade data to identify and qualify alternative suppliers from transactional clusters like MALAYSIA. This diversifies sourcing and reduces over-reliance on CHINA MAINLAND, mitigating supply chain disruption risks.
• Analyze unit price trends by sub-code to prioritize procurement of high-margin memories. This maximizes profitability by focusing on segments with stronger pricing power in the India Integrated Circuits Import market.
• Monitor shipment frequency data from key origins to optimize inventory cycles. This prevents overstocking of high-volume components and ensures just-in-time delivery for assembly operations.
• Track regulatory updates and duty changes via platforms like FreightAmigo. This ensures compliance and cost efficiency, avoiding unexpected expenses in the Integrated Circuits supply chain.
• Engage with low-frequency, high-value suppliers for niche components. This secures access to specialized parts and builds resilient relationships beyond the dominant trader clusters.

Take Action Now —— Explore India Integrated Circuits Import Data

Frequently Asked Questions

Q1. What is driving the recent changes in India Integrated Circuits Import 2025 Q2?

The Q2 2025 import trend showed volatility, peaking at $5.43 billion in May before dropping sharply to $4.25 billion in June. This reflects market adjustments due to regulatory uncertainty, including India's import restrictions and duties on electronics.

Q2. Who are the main origin countries of India Integrated Circuits (HS Code 8542) 2025 Q2?

CHINA MAINLAND dominates in quantity (55.72%) and frequency (53.24%), while CHINA TAIWAN leads in value (38.23%). SOUTH KOREA and JAPAN also contribute significantly as volume hubs.

Q3. Why does the unit price differ across origin countries of India Integrated Circuits Import?

The disparity stems from product specialization: CHINA TAIWAN supplies high-grade circuits (e.g., memories at $9.48/unit), while CHINA MAINLAND focuses on bulk processors/controllers ($1.37/unit).

Q4. What should importers in India focus on when buying Integrated Circuits?

Diversify sourcing beyond high-risk origins like CHINA MAINLAND and prioritize compliance with India’s 7.5% customs duty and IGST to mitigate regulatory and supply chain vulnerabilities.

Q5. What does this India Integrated Circuits import pattern mean for overseas suppliers?

Suppliers of high-value components (e.g., CHINA TAIWAN) retain pricing power, while bulk suppliers face competitive pressure. Geopolitical risks may incentivize shifts to alternative hubs like MALAYSIA.

Q6. How is Integrated Circuits typically used in this trade flow?

India imports these components primarily for electronics manufacturing, with processors/controllers (60% of value) supporting high-volume production and memories serving specialized high-end applications.

Detailed Monthly Report

India HS8542 Import Snapshot 2025 APR

India HS8542 Import Snapshot 2025 MAY

India HS8542 Import Snapshot 2025 JUN