The Indian semiconductor market that is currently at $205.29 billion in revenue is expected to surge to $243.30 billion in 2011 and reach a revenue size of $295.8 billion in 2012, a study on Indian semiconductor by Frost & Sullaivan says.
The application segment of the study include mobile, telecommunication, IT, consumer electronics, industrial electronics, automotive electronics, and others including aersopace, defence, medical electronics and smart cards and the tablets. The Indian semiconductor industry grew by a phenomenal 28.3% in 2010 despite global semiconductor market?s cyclical trend having minimal impact. In segment-wise growth, mobile devices contributed 82% in 2010 led by the local manufacturing of telecom equipment by OEMs and EMS companies that propelled semiconductor consumption by 50% between 2010 and 2012. The semiconductor revenue from telecommunication industry is expected to grow from $124.57 billion in 2010 to $191.5 billion in 2012.
Similary, revenue from industrial electronics segment is expected to advance from $284.4 million to $415.8 million in the same period. The consumer and auto electronics industry revenues are expected to rev up to $576.9 million and $300.9 million respectively in 2012 from the current level of $386.2 million and $175.2 million.The aerospace industry is anticipated to mop up $417.9 million in 2012 from the current $330.6 million.
Some of drivers that propelled the momentum across segments like electronics are replacement of CRT TVs with LCDs and local manufacturing of LCDs and set top boxes, digitisation of control in auto industry, combined with localisation of product procurement by auto OEMs. In aerospace, growth was driven by smart card IDs and government impetus for made in India medical and defence products.
However, the future demand is expected to arise from auto sector that is projected to consume 31% of the total output in 2010-12 period.
The spike is auto sector demand is influenced by regulatory norms and sharpening competition. In its key recommendations to bolster high growth, the F&S report says it is time to shift from design-led manufacturing to demand-led manufacturing, PPP initiatives to set up integrated electronic parks and clusters, identification and promotion of killer application or product for indigenous manufacturing in telecom, mobile handsets, STB, LCD, LED, medical devices and auto identification.,etc. It further stresses on the need to announce a national electronics development plan with inputs from various industry stakeholders.