Indian semicon market update shows 28.3 percent growth in 2010!
I am a bit amused to read the latest key findings on the Indian semiconductor market from ISA-Frost & Sullivan. Never mind!
The report concludes that products demonstrating potential for explosive growth include –mobile devices, telecom base stations, LCD TV, STB, EMS, CFL, LED lights and smart cards and products with low MI – notebooks, tablets, STBs routers, digital cameras, etc. need to be given preferential treatment for indigenous manufacturing.
India is becoming the hub for small car manufacturing. Incentives and encouragement need to be provided for enhancing automotive component manufacturing in the country to keep pace with automobile industry growth.
Products enabling energy efficiency need to be incentivized through tax breaks for R&D and product development thereby promoting indigenous manufacturing. Electronics and semiconductor MI stagnate at 50 percent; the TAM growth is unlikely to match the TM growth in the near future! Continuing status quo — the electronics import bill to surpass crude import bill by 2020-21.
The need of the hour is a focused mission for local electronics manufacturing promotion. A National Electronics Development Plan is also required. As is required an electronics policy for ecosystem development; subsidies for manufacturing; funds for R&D; extended tax breaks; hardware development parks.
Otherwise, the report suggests that India’s semiconductor market grew by a phenomenal 28.3 percent in 2010.
The global semiconductor market’s cyclical trends has minimal impact on India. Mobile devices, telecom and IT/ OA contributed 82 percent to semiconductor TM in 2010.
Local manufacturing of telecom equipment by OEMs and EMS companies to propel related semiconductor consumption by a massive 50 percent during 2010 to 2012. Influenced by regulatory norms and sharpening competition, automotive segment to account for the highest growth in semiconductor demand at 31 percent from 2010 to 2012.
Sustained gulf between the semiconductor TM and TAM from 2010-2012 highlight the urgency to promote local manufacturing to drive higher growth in TAM.
The Total Semiconductor Market (TM) revenues are poised to grow from $6.55 billion in 2010to $9.86 billion in 2012. The market is expected to witness a CAGR of 22.7 percent.
During the corresponding period, the Total Semiconductor Available Market (TAM) revenues are expected to grow at a CAGR of 22.3 percent reaching revenues of $4.71 billion in 2012from $3.14 billion in 2010. Mobile devices and telecom are the key contributors to TAM while mobile devices and IT/ OA are the key contributors to TM.
Being an indispensable component in a wide range of products, the memory market leads the contribution to semiconductor revenues with 23.4 percent and 20.1 percent of TM and TAM, respectively.
One hopes that all of this is indeed correct, and the Indian semiconductor industry continues to grow in future!
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* Pradeep's Point - Winner, World's Best Blog in Electronic Hardware -- Electronics Weekly, UK (December 2008).
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Pradeep’s Point – Best Tech Blog, IndyWood Media Excellence Awards, Hyderabad, India, Sept. 2016.
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PC's Semicon Blog won once, Electronic Components four times, Electronics Blog and Telecom Blog once each. See below: :)
* PC's Semicon Blog was awarded the Top Digital Media Blog by Online IT Degree (November 2010).
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World Champion 2008! ;)
Pradeep Chakraborty's Blog was selected as the best in the world in the Electronic Hardware category for 2008-10, by Electronics Weekly, UK.
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PC’s Semicon Blog Award 2010! :)
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