Chip market growing at 23% | business | Hindustan Times
Today in New Delhi, India
Dec 10, 2016-Saturday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Chip market growing at 23%

business Updated: May 04, 2011 21:36 IST
Highlight Story

India’s semiconductor market grew by 28.3% in 2010, according to India Semiconductor Association (ISA), the trade body representing Indian Electronic System Design and Manufacturing (ESDM) industry.

According to ISA— Frost and Sullivan India semiconductor market update 2010-2012 — released on Wednesday, the total semiconductor market (TM) in India was at $6.6 billion in 2010 and is expected to be $9.9 billion in 2011. This is estimated to grow at a compounded annual growth rate (CAGR) of 22.7% from 2010 to 2012.

This growth showed that the global semiconductor market’s cyclical trends have minimal impact on India, ISA said.

Mobile devices, telecommunications, information technology and office automation (IT & OA) are the key drivers of the semiconductor market in India contributing around 82% to semiconductor TM in 2010.

“We need local manufacturing to reduce the import bill of electronic components and are quite optimistic about the government’s efforts to encourage local manufacturers,” said Pradip K Dutta, chairman, ISA.

“Local manufacturing of telecom equipment by OEMs and EMS companies propel related semiconductor consumption by 50% during 2010 to 2012”, it said.

“The semiconductor industry in India presents immense potential to contribute significantly to the country’s growing economy. In addition, there are strategic reasons for a country of our size and GDP to develop domestic electronics manufacturing ecosystem.”