Indian semi market grew 15% in 2009, says study

An ISA-commissioned study found that the Indian market was worth $5.4 billion in 2009 and is poised to grow to more than $8 billion in 2011, a 22 percent compounded annual growth rate.

According to ISA data, the Indian market in 2009 accounted for $1.3 billion worth of memory chips, $1.1 billion worth of application specific standard processors, $734 million worth of microprocessors, $581 million worth of ASICs, $338 million worth of analog power chips, $334 million worth of analog-mixed signal devices, $154 million worth of sensors, $134 million worth of logic/FPGAs, $86 million worth of microcontrollers and $30 million worth of digital signal processors.

By segment, wireless handsets accounted for 27.5 percent and telecoms for 19 percent of the Indian semiconductor market in 2009, while information technology and office automation accounted for 34 percent and consumer electronics for 8 percent, according to the ISA.

The Indian semiconductor market grew by more than 15 percent from 2008 to 2009, in contrast to the global market which shrank by 11 percent during the same period, the study, which was conducted by consultancy Frost & Sullivan.

Wireless handsets, 3G networks, WiMAX, notebook computers, set-top boxes and smart cards are slated to be the prime growth areas in the semiconductor market, said Poornima Shenoy, ISA president.

Telecommunications infrastructure development-related domestic semiconductor consumption will grow by a whopping 132 percent from 2009 to 2011, no doubt fanned by the successful completion of the 3G and broadband wireless access spectrum auctions recently, according to the report.

Electronic systems design and manufacturing (ESDM) represents a great opportunity for India, according to Biswadip Mitra, chairman of the ISA and head of Texas Instruments’ Indian arm, based here. The total available market for the Indian electronics industry is anticipated to rise from $25 billion to $37 billion in 2011.

"We will drive the ESDM agenda across multiple segments such as telecoms, industrial, automotive, consumer and healthcare," Mitra said. "The ISA will work closely with electronic systems companies and OEMs across the country to take this agenda forward."