India's only fully operational semiconductor assembly and test services provider SPEL Semiconductor recorded a revenue growth of 14% in its FY 2009-10 compared to same period a year ago. SPEL Semiconductor's Q3 FY 09-10 sales have reached Rs 22.09 Crores (approx 4.8 million US$).
If anyone has negative opinion about the possibility of increased semiconductor manufacturing in India, SPEL's performance suggests to review such thoughts. India is slowly heading to become semiconductor-manufacturing destination. If it may not be a 32nm or 22nm fabs, but atleast in solar seminconductor and semiconductor assembly and testing services, India is on slow path of becoming semiconductor-manufacturing region.
This Chennai based company has performed well when the global semiconductor industry was under recession.
The positive statement from the company reads, "The recession created a vacuum for new products and technologies which in turn creates a growth market. The inventory burn and lack of orders have created a huge backlog for customers and suppliers in general and they aim to attain sufficient inventory levels for all their customers as demand continues to grow."
SPEL Semiconductor said its management had introduced various cost and energy saving measures during the previous quarter. These have started producing results during this quarter itself. Due to these proactive approaches SPEL has been effective in riding the recession wave and emerge out of it with negligible impact.
With global semiconductor industry analysts predicting a growth rate around 20% in 2010 and India leading in the growth, SPEL is expecting good times in 2010.
To tap this opportunity SPEL has invested, from internal generations, Rs.7 Crores during FYQ3. This will increase the annual capacity by 27 Million units and will yield additional annual revenue of Rs. 8.5 Cr. This will soon be followed by another major capacity expansion with investment of about Rs. 26 Cr.