India Is Fastest Growing Market for Semiconductors

India's use of semiconductors is projected to total US$8.2 billion in 2011, a 15.5% increase from 2010 consumption of $7.1 billion, according to Gartner, Inc. 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," says 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, which includes mobile phones, wireless LAN, public switching and other communications infrastructure equipment, will account for the largest chunk of nearly 52% 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% 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, 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,” Ramamoorthy said.

 

 

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