LONDON – India semiconductor consumption was $8 billion in 2012, a 7.4 percent increase from 2011, and it will grow to $9.6 billion in 2013, a jump of 20 percent, according to market research firm Gartner Inc. India's 2012 growth was in contrast to the global trend as worldwide semiconductor revenue declined 2.6 percent to reach $299.9 billion in 2012.
Three electronic devices – the mobile phone, the PC and the LCD TV – account for 70 percent of India's overall semiconductor consumption, according to Gartner. Of these three the LCD TV saw the biggest growth in 2012 with the value increasing by 45 percent. The consumption of chips for inclusion in mobile phones grew by 5.7 percent and the value of the market for chips for PCs declined by 0.3 percent.
Ganesh Ramamoorthy, research director at Gartner, said that high inventory levels affected semiconductor consumption in India during 2012, just as they did elsewhere in the world. "However, a relatively better domestic economic climate and growth in consumer spending helped semiconductor consumption growth in India," he said.
"With the global semiconductor industry poised for a rebound starting in the second quarter of 2013, we expect semiconductor consumption in India to also grow," said Ramamoorthy. Mobile phones, PCs and LCD TVs will account for 74 percent of India's total semiconductor consumption in 2013, he said.
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