The Indian Semiconductor Association (ISA) has updated its India semiconductor market study report. It said India's semiconductor market grew 15.6 percent in 2009 while the global semiconductor market shrunk by close to 10 percent during same period.
The reason; penetration of mobile phones, personal and home electronic appliances into rural India and the masses, whose economy is least connected to global recession of 2009.
ISA in association with Frost and Sullivan has forecasted the Total semiconductor Market (TM) revenues to grow from $5.39 billion in 2009 to $8.04 billion in 2011 at a Compound Annual Growth Rate of (CAGR) of 22.1 percent. During the same period Total Semiconductor Available Market (TAM) is forecasted to grow at CAGR of 34.8 percent far higher than TM. TAM revenue to reach $4.84 billion in 2011 from $2.66 billion in 2009.
India Semiconductor consumption pattern is changing after once mobile phone companies such as Nokia has installed manufacturing plant in Chennai. Now there are Tens of mobile phone companies making or planning to produce phones locally by establishing factories in India. And the local brands are doing well.
Quick approximate assessment of Indian electronics and semiconductor industry market drivers.
India needs more than a billion smart cards in next 5 years
India need 100s millions of mobile computers in next 2/3 years
Biggest market for LCD TVs after China
India need atleast another 300 million mobile phones
India Automotive industry going electric as fast as rest of the world
India's medicos are adopting technology for cheaper and faster diagnosis in sync with developed world
Every middle class (India rated) family house to have a set top box and a broad band internet connection (>60% of this still not bought these things).
Government is turning more techie.
Solar market is bigger than power shortage in the Nation
1 billion + population of India can be roughly assessed in the range of 20$ to 30$ worth of per capita semiconductor consumption, resulting into India consuming 20 billion $ to 30 billion $ worth of semiconductors. Much of this lands in India in the form of ready product. To reduce the manufacturing cost and also to reap local advantage, companies like Nokia have set up manufacturing plant in Chennai. The Nokia's plant in Chennai buy much of devices/electronic components mainly semiconductor devices locally. Situations such as these resulted in major impact on increase of semiconductor sales in India.
If we look at the consumption by India based companies, the pictures is not so rosy. The major consumption is still by public sector establishments. Telecom used to consume lot of chips, but after ITI and C-DoT's failures this market has come down severely.
However things are changing with companies like Moser Baer, Tejas Networks and many such companies budding in lot, which may result in 3 digit growth in some of the semiconductor sectors. Telecom (3g and phones), netbook/notebook, smart cards, automotive, solar power, and medical are fast growing areas. Consumer and industrial and defense are also growing but at little less rate.
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