India’s microchip market is set for a robust compounded annual growth rate (CAGR) of 22.1 per cent, according to a report released by the India Semiconductor Association (ISA). The study said that wireless handsets, notebooks, set-top boxes, smart cards and newer technologies like 3G and WiMax are powering demand that feeds this growth.
Even as the global semiconductor market shrunk by 11 per cent in 2009, it grew by 15.6 per cent in India during the same period, the study said. The revenues are poised to grow from $5.39 billion (Rs 24,900 crore) in 2009 to $8.04 billion (Rs 37,000 crore) in 2011.
“The total available market for the Indian electronics industry is anticipated to rise significantly to $37.1 billion (Rs 1,71,600 crore) in 2011 from $25.4 billion (Rs 1,17,400 crore) in 2009,” said Biswadip Mitra, chairman, ISA. By the year-end, India’s share in the global semi-conductor market is expected to be around 2.28 per cent. At present, India’s share is close to 1.5 per cent of the total global semiconductor market.
Telecommunications infrastructure development related domestic semiconductor consumption is expected to grow by a whopping 132.5 per cent over the period from 2009 to 2011, the study said.