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India semiconductor industry is upbeat

Posted: 10 May 2011     Print Version  Bookmark and Share

Keywords:chip market  India's semiconductor market  domestic electronics 

Cyclical global chip market trends had little impact on India during 2010, with its semiconductor market growing by 28 per cent in 2010 to an estimated Rs.29,908.68 crore ($6.55 billion), according to the ISA—Frost & Sullivan India Semiconductor Market 2010-2012 report.

The Total Semiconductor Market (TM) is expected to be Rs.45,022.83 crore ($9.86 billion) in 2011 which is estimated to grow at a CAGR of 22.7 per cent from 2010 to 2012.

Chip content in domestic products, most of which are made by foreign-owned factories here, accounted for just under half the total value of the Indian semiconductor market.

The India Semiconductor Association, which released the estimate along with researcher Frost & Sullivan, also called on the national government to frame a policy for boosting domestic electronics manufacturing.

 ISA–Frost & Sullivan

ISA–Frost & Sullivan: (L-R) Deepa Doraiswamy-F&S, Poornima Shenoy-ISA, Ajay Kumar,IAS-DIT,Pradip K Dutta-ISA.

Pradip K. Dutta, ISA chairman said, "The semiconductor industry in India presents immense potential to contribute significantly to the country's growing economy. In addition, there are strategic reasons for a country of our size and GDP to develop domestic electronics manufacturing ecosystem. We need local manufacturing to reduce the import bill of electronic components and are quite optimistic about the government's efforts to encourage local manufacturers."

Mobile devices constituted 32 per cent of the Indian chip market, followed by computing and office automation equipment with 31 per cent. The two segments are expected to account for most of the semiconductors used in India over the next several years too, the report predicted.

Jaswinder Ahuja

Jaswinder Ahuja: The focus should be on nurturing an ecosystem that encourages local systems design.

Industry views
Cadence Design Systems (India) Pvt. Ltd corporate VP and MD, Jaswinder Ahuja said, "As affirmed in the ISA-F&S report, the growth of the Indian semiconductor market over the last one year from a 15.6 per cent in 2009 to 28.3 per cent is clearly attributed to the ever increasing consumer base as well as the demand for energy efficient products/services.

Fresh innovative opportunities in the aerospace & defence and automotive segments have also actuated the growth. The communications segment has been identified as another main revenue generator with the introduction of the national broadband plan, expansion of telecom infrastructure and enterprise.

To achieve the revenue forecast of $9.86 billion [Rs.45,022.83 crore] by 2012, the focus should be on nurturing an ecosystem that encourages local systems design. The government has to take steps to persuade companies to design and develop India centric products."

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