Demand for low-priced semiconductors is a real threat for the market: Report

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Research and Markets has recently released the “Semiconductor Market in India 2011-2015” report. TechNavio’s analysts forecast the semiconductor market in India to grow at a CAGR of 22 per cent over the period 2011-2015. One of the key factors contributing to this market growth is the governmental reforms encouraging private investments. The semiconductor market in India has also been witnessing heavy investments from chipmakers for capacity expansion. However, increasing low-priced semiconductor imports could pose a challenge to the growth of this market.

Key vendors dominating this market space include Intel Corp, NXP Semiconductors NV, Samsung Electronics Co Ltd, and Texas Instruments Inc.

Commenting on the report, an analyst from TechNavio’s Hardware said, “Imports have catered a lot of demand for electronics and other semiconductor based products in India. This growing demand may result in original equipment manufacturers (OEMs) and electronic manufacturing service organisations setting up manufacturing facilities in India. This will increase the market size of semiconductors.”

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According to the report, recently, it has been observed that the Consumer Electronics Goods segment has become crowded with many innovative products. Therefore, there exists a demand from end-users for more efficient products. In India, consumer electronic goods have experienced strong adoption from end-users. Hence, it is expected that the Consumer Electronics segment will grow efficiently during the forecast period, driving the semiconductor market in India.

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