Indian semiconductor market exceeds expectations in 2010

NEW DELHI, INDIA: ISA, the premier trade body representing the Indian Electronic System Design and Manufacturing (ESDM) industry released the ISA - Frost & Sullivan India Semiconductor Market 2010-2012. This is the fourth update of the report and was released by Dr. Ajay Kumar IAS, Joint Secretary, Department of Information Technology, Government of India.

Executive summary
* India’s semiconductor market grew by 28.3 percent in 2010; global semiconductor market’s cyclical trends has minimal impact on India.

* The Total Semiconductor Market (TM) is estimated at $6.55 billion in 2010 and is expected to be $9.86 billion in 2011. This is estimated to grow at a CAGR of 22.7 percent from 2010 to 2012.

* Mobile fevices, telecommunications, IT and office automation (IT & OA) are the key drivers of the semiconductor market in India contributing around 82 percent to the semiconductor TM in 2010.

* Local manufacturing of telecom equipment by OEMs and EMS companies propel related semiconductor cconsumption by 50% during 2010 to 2012.

* National Broadband plan has expanded the telecom infrastructure and enterprise markets which has shown a TM revenue growth of 49.4 percent from 2010 to 2012.

* Influenced by regulatory norms and sharpening competition, Automotive segment accounts for the highest growth in semiconductor demand at 31 percent from 2010 to 2012.Source: ISA, India.

Speaking on the occasion, Dr. Pradip K. Dutta, chairman, ISA 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.”