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Share of overall revenues
2005 (%)
2015 (%)
VLSI Design
US$0.6 billion (18)
US $5.1 billion (12)
Hardware/ Board Design
US $0.1 billion (4)
US $1.6 billion(4)
Embedded Software
US$2.5 billion (78)
US$ 36.3billion (84)
Total
US $3.2 billion (100)
US $ 43 billion (100)
ISA-Frost & Sullivan, 2006
The ISA-EY Benchmarking Study 2007 benchmarks the semiconductor design sector in India with peer countries on factors of importance to the sector and identifies important high level focus areas and actions to facilitate sustainable growth. Peer countries are Canada, China, Czech Republic, India, Israel, Taiwan, UK and the USA. Some of the main findings which clearly position as India as an attractive design hub are:
• Availability and scalability of talent
• Quality of talent
• Quality of technical education
• Talent cost advantage
The increased flow of international companies setting up their offshore design and development base and the ramping up of engineering human resource in the existing set up, including the non-captive companies is expected to drive the revenues for the total design market in India.
Why are companies coming to India?
This can be attributed to a few key points.
Captive companies i.e. subsidiaries of multinational companies, making strategic investments in India are looking at the growing domestic market by 2015 and the consistency of consumption growth in the end-user markets.
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