Indian semiconductor market to touch $36.3b by 2015

NEW DELHI: The Indian semiconductor market is expected to touch $36.3 billion by 2015. This growth would be fueled by increased consumption of electronic equipment in India, which is expected rise to $363 billion by 2015 from $28.3 billion at a CAGR of 29.8 percent. The semiconductor driven industry is also expected to create over 3.4 million jobs by 2015.

These were some of the findings of the India Semiconductor Association (ISA) - Frost and Sullivan report on the Indian semiconductor industry. The report also estimated that the contribution from this sector would grow to more than 12 percent in 2015, from about two percent in 2005, creating a much larger impact on the economy of the country.

The two reports, “India Semiconductors Market, 2005-15: Growth, Trends and Forecasts” and “India Semiconductors and Embedded Design Market, 2005-15: Growth, Trends and Forecasts”, were released by Cabinet Minister for Science & Technology and Ocean Development Kapil Sibal.

The ISA- Frost and Sullivan report also outlines that the Indian electronics equipment production grew at a growth rate of 25 percent in 2005, which is expected to reach a growth rate of 50 percent in 2010 and 34 percent in 2015.

Indian electronics equipment manufacturing is expected to grow at 5.5 times the growth rate of global electronics equipment production during 2010 and 2015.

The second report reveals that the semiconductor and embedded design industry in India generated revenues of $3.25 billion in 2005, which is expected to boom to $43 billion by 2015 growing at a CAGR of 30 percent during the forecast period. The key factor driving this growth include rapidly growing local markets, a strong education infrastructure with industry participants collaborating with academics for training manpower in microelectronics, low-cost design talent, short product lead-times, reduced barriers to entry, government support and improved infrastructure.

Speaking on the occasion, ISA chairman Rajendra Khare said, “This report will be an invaluable source of data for all those who seek to understand the dynamics of the Indian semiconductor market, as they provide information for strategy formulation, including manpower challenges, future course of the market and its constituents.”

Speaking on the occasion, Sibal said that the government has not yet looked at this sector the way it should have. “This sector has tremendous potential and the government should encourage the growth of this sector by giving fiscal incentives,” he added.