Communications sector to drive Indian semiconductor market


The communications electronics segment, which includes
mobile phones, wireless LAN, public switching and other communications
infrastructure equipments, will account for the largest chunk of nearly 52
percent of India’s semiconductor consumption in 2011, according to Gartner.


Data processing electronics segment comprising of desktop
computers, laptops, monitors and storage equipments, with about 26 percent
share of the total semiconductor consumption.


Given the low penetration and the growing demand for key
electronic equipments such as mobile phones, desktop and laptop computers and
LCD TV’s,  the Indian market will be able to easily sustain high growth
rates in the coming years.


India semiconductor consumption is projected to total
$8.2 billion in 2011, a 15.5 percent increase from 2010 consumption of $7.1
billion, according to Gartner. Based on this forecast, India is the fastest
growing market in terms of semiconductor consumption for 2011.


Changing demographics, increasing consumer
affluence, economic growth and favorable government policy continues to drive
the electronic equipment manufacturing industry in India
said Ganesh Ramamoorthy, research director at Gartner.


Numerous global electronic equipment manufacturing
companies have set up production facilities in India, to take advantage of the
growing domestic market and to cater to neighboring markets in the region. As a
result, semiconductor consumption is also growing at a rapid pace.


Gartner expects India’s semiconductor consumption to grow the fastest across the globe through
2015 at a compound annual growth rate of 15.9 percent to reach nearly $15
billion. Through 2015, nearly three-fourths of India’s semiconductor
consumption will be accounted for by these three electronic equipment segments.


By Team
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