The Indian semiconductor design industry, comprising of VLSI design, board design and embedded software companies, has design companies across Bangalore, NCR, Hyderabad, Chennai, Pune, Ahmedabad and Goa.
All the global top ten fabless design companies have India operations and 19 of the top 25 semiconductor companies are already here.
The Indian semiconductor design industry (i.e. VLSI, hardware/board, embedded software) had a turnover of USD 3.2 billion in 2005 with an engineering workforce of around 75000. It is estimated to reach US D 43 billion by the year 2015 and provide jobs to 780,000 professionals with a CAGR of around 30 % for this period.
Market for semiconductors
With its growing middle class population of nearly 400 million people which will only increase over time, India's electronic equipment consumption which was estimated at around US D 28.2 billion in 2005, is expected to reach US D 363 billion by 2015 growing at around CAGR 30%. Indian electronics equipment domestic production was US D 10.99 billion in 2005 and projects an opportunity to touch US D 155 billion in 2015.
The major end use segments are communications, information technology and consumer electronics. Together, the important product sub-categories that would drive the semiconductor market in India are mobile handsets, wireless equipment, especially BTS equipment which is gaining momentum, set top boxes, and smart card terminals.
India's total semiconductor consumption in 2005 was about US D 2.8 billion, met chiefly through imports. This demand is likely to exceed US D 36 billion by the year 2015. Electronics –whether it is office automation, consumer electronics, medical electronics, telecommunications or industrial automation will require more of the semiconductor industry in India.
|
|
2005
|
2015
|
CAGR
|
|
Electronic equipment consumption
|
$ 28.2 billion
|
$ 363 billion
|
27%
|
|
Contrbn to global electronic equipment production
|
2%
|
11%
|
|
|
Electronic equipment production
|
$ 10.99 billion
|
$ 155 billion
|
|
|
Contrbn to global electronic equipment production
|
< 1%
|
5%
|
|
|
Total market for semiconductors
|
$2.82 billion
|
$36.3 billion
|
29.8%
|
|
Total global demand
|
$235 billion
|
$558 billion
|
|
|
Share in global semiconductor revenues
|
1.2%
|
6.5%
|
|
|
|
|
|
|
ISA-Frost & Sullivan, 2006
