Indian semiconductor consumption to grow 15.5 percent in 2011

by K C Krishnadas, TechOnline India - August 04, 2011

India semiconductor consumption is to total $8.2 billion in 2011, a 15.5 percent rise from the 2010 consumption of $7.1 billion, according to a Gartner forecast.

India semiconductor consumption is to total $8.2 billion in 2011, a 15.5 percent rise from the 2010 consumption of $7.1 billion, and 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.”

The communications electronics segment, including mobile phones, wireless LAN, public switching and other communications infrastructure equipments, will comprise the largest chunk of nearly 52 percent of India ’s semiconductor consumption in 2011, followed by the 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 equipment such as mobile phones, desktop and laptop computers and LCD TV’s, we believe the Indian market will be able to easily sustain high growth rates in the coming years,” Ramamoorthy said.

“Therefore, we expect 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,” Mr. Ramamoorthy said.

Additional information is available in the Gartner report "Forecast: Semiconductor Consumption by Electronic Equipment Type, Asia/Pacific, 2Q11 Update." The report is available on Gartner's website at http://www.gartner.com/resId=1727990.

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