Indian semiconductor market growing at CAGR of 22 per cent

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By Srabani Sen

In 2009, the India semiconductor market grew by 15.6 per cent while the global market shrunk by 11 per cent. This is definitely an achievement for India. The demand for wireless handsets, 3G networks, WiMax, notebooks, set top boxes and smart cards is rising to such an extent that this segment will primarily drive the semiconductor market in India. Telecommunications infrastructure development that’s related to domestic semiconductor consumption will also grow by 132.5 per cent from 2009 to 2011.

These key facts and figures were highlighted by the Indian Semiconductor Association (ISA)-Frost & Sullivan India Semiconductor Market update 2009-2011, released in Delhi by M M Pallam Raju, minister of state for defence, Government of India.

Releasing the report, Poornima Shenoy, president, ISA, said, “The semiconductor industry in India is growing at a compounded annual growth rate (CAGR) of about 22 per cent. This points to the rapidly growing domestic market, which necessitates the need to have electronics as a national agenda. It can contribute substantially to the GDP in the years to come.”

Biswadip (Bobby) Mitra, chairman, ISA, pointed out that electronic systems design and manufacturing (ESDM) is a great opportunity ahead. “The total available market (TAM) for the Indian electronics industry is anticipated to rise significantly to $37.1 billion in 2011 from $25.4 billion in 2009, with a CAGR of 21.4 per cent,” he said.

“We will drive the ESDM agenda across multiple segments such as telecom, industrial, automotive, consumer durables, healthcare, etc. ISA will work closely with electronic systems companies and OEMs across the country to take this agenda forward. The real test for ESDM starts now. A clear roadmap has to be in place to achieve the growth ahead,” Mitra added.

Commenting on the Indian semiconductor market report for 2010, Anand Rangachary, managing director, Frost & Sullivan, said, “By end of 2010, India’s share in the global semiconductor market is expected to be 2.28 per cent and will be one of the fastest growing semiconductor markets globally.” 

As per the report, the total semiconductor market (TM) revenue is poised to grow from $5.39 billion in 2009 to $8.04 billion in 2011. The corresponding period is expected to witness a phenomenal CAGR of 34.8 per cent in TAM.

According to the report, electronics hardware manufacturing holds the key to the Indian semiconductor industry’s growth.

Speaking on the occasion, Pallam Raju said, “The electronics industry has the potential to take India to the next generation of technology. Electronics can usher in an era of change in India, and can provide for inclusive growth in sectors such as healthcare and education, and leadership in energy efficiency. Going forward, domestic electronics manufacturing companies have the capability to contribute up to 20 per cent of our GDP by 2020.”

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