India’s semiconductor revenues are expected to reach US$ 15 billion by 2015, according to research firm Gartner. Consumption of semiconductor is projected to touch US$ 8.2 billion in 2011, a 15.5 per cent increase from $ 7.1 billion in 2010, and this consumption is projected to grow at a compound annual growth rate of over 15.9 per cent to reach nearly $ 15 billion in 2015, it added.
This is due to changing demographics, increasing consumer affluence, economic growth and favorable government policy continue to drive the electronic equipment manufacturing industry in India.
Numerous global electronic equipment manufacturing companies have set up production facilities in India to take advantage of the growing domestic market and to cater to neighboring markets in the region.
The communications electronics segment, which includes mobile phones, wireless LAN, public switching and other communications infrastructure equipment, is expected to account for the largest chunk of nearly 52 per cent of India’s semiconductor consumption in 2011.
This will be followed by the data processing electronics segment comprising desktop computers, laptops, monitors and storage equipment, with about a 26 per cent share of total semiconductor consumption.