BANGALORE, INDIA: The India Semiconductor Association (ISA), the trade body representing the Indian semiconductor driven industry and IDC (India) Ltd, launched the “India semiconductor and embedded design service industry (2007-2010): Market, technology and ecosystem analysis”.

Some of the key findings of this comprehensive report include:

* The total design market in India for 2007 was estimated at US$ 6 billion. 81 percent of the revenues were in the area of embedded software followed by VLSI design (13 percent) and hardware/board design (6 percent).

* The total workforce employed in the design services industry in India was estimated at 130,000 in 2007.Of this the bulk of the jobs were in embedded software 82 percent followed by VLSI design (11 percent) and hardware/board (7 percent).

* The industry was estimated to grow at a CAGR of  around 21.7 percent between 2007-2010.

* The geographical focus of the industry indicates that US has a share of 70 percent; Europe at 30 percent; and the emerging economy is that of Japan.

The key factors that determine the growth of the design sector in India are: The growing expertise and capabilities in complex end-to-end design; strong IP development and talent. The domestic market is one of the fastest growing in Asia as well as globally.

The report was launched by E.K. Bharat Bhushan, Director General, STPI, in the presence of S. Janakiraman, Chairman, India Semiconductor Association (ISA), Ms. Poornima Shenoy, President, ISA, and Kapil Dev Singh, Country Manager, IDC (I) Ltd.

Commenting on the Indian design market, Poornima Shenoy, President, ISA, said: “The Indian semicon design industry with over 200 companies is on a strong growth trajectory. Our growth is nearly 22 percent which is three times the global growth rate of around 7 percent. We are looking eastward for business and collaboration heralding a new era in the future of the sector."

Announcing the findings of the ISA-IDC report, Kapil Dev Singh, added: "The Indian semiconductor and embedded design services market has grown consistently over last five years and market is expected to cross the US$ 7.37 billion in 2008. The domestic semiconductor and embedded design services industry is all set to enter a new phase – Ver 2.0, following on from where Ver 1.0 left off. To achieve this next phase of growth industry need to focus on availability of quality manpower, higher productivity and more value creation.”