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Date: 23-04-12

The proposed India semiconductor fab partners

In a news story from Hindu Business Line, it is said GlobalFoundries, Applied Materials, TowerJazz and Jaypee Associates, Sitronics and Infineon, STMicroelectronics and HSMC, and Intel are the five (groups) semiconductor companies working with Dept of Electronics and Information Technology to invest or support in building a semiconductor fab in India.

There is simple equation to calculate the demand for semiconductor chips in India and the final revenue they can generate. The driving factor in India's population: 1.2 Billion (approximate).

Let's look at some compulsory products each individual or a household going to buy in next 2/3 years.
 1. Mobile Phone- 60% of 1.2 Billion = 720 Million
 2. Smart Meter- 200 Million+ house holds = 200 Millon
 3. UID cards - All 1.2 Billion = 1.2 Billion

The minimum number of chips India needs for this above alone is = 2.102 Billion chips (assuming one chip per device). The total revenue is nothing less than 2 Billion $s. This is just the tip of the iceberg. There is lot more electronics involved in every aspect of life. So there is tens of Billion of $s of market available in India.

To read the full news story from Hindu Business Line visit:

www.thehindubusinessline.com/industry-and-economy/info-tech/article3342845.ece

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