The Indian semiconductor industry offers |
computing, thereby creating sustainable |
high growth potential areas as the |
demand for semiconductors. |
industries which source semiconductors |
India has a very fast growing electronics |
as inputs are themselves witnessing high |
system design manufacturing( ESDM) |
demand. The end-use industries such as |
industry. India also has a strong design |
mobile devices, telecommunication |
base with more than 120 units. According |
equipment, information technology, office |
to the Department of Electronics and |
automation( IT & OA), industrial |
Information Technology( DeitY), nearly |
machinery, automobiles and several other |
2,000 chips are being designed every year |
industries have applications for computing |
in India and more than 20,000 engineers |
in some form or other and thereby |
are working on various aspects of chip |
necessarily have growing demand for |
design and verification. The government |
semiconductors. Now with the concept of |
has a strong focus in developing the |
Internet of Things( IoT) picking up |
ESDM ecosystem in India. Several |
momentum, the next generation of |
subsidies and other incentives are on offer |
interconnected devices would further |
for setting up electronics manufacturing |
According to the India Electronics & |
per cent between 2013 and 2020. The |
Semiconductor Association, the Indian |
IT & OA segment is estimated to grow at a |
Electronic System Design and |
CAGR of 18.2 per cent over the next seven |
Manufacturing( ESDM) market will grow |
years. Although consumer electronics |
from US $ 76 billion in 2013 to US $ 400 |
segment is expected to grow at a CAGR of |
billion by 2020. Consumption of |
18.8 per cent, its contribution to the total |
semiconductors, in the meantime, has also |
semiconductor revenue is expected to |
steadily climbed. According to a report by |
lower to 3.5 per cent in 2020 from 5.6 per |
NOVONOUS, the semiconductor industry |
cent in 2013. Automotive electronics |
is estimated to grow from US $ 10.02 |
segment is expected to grow at a fast clip |
billion in 2013 to US $ 52.58 billion in 2020 |
of 30.5 per cent CAGR from 2013 to 2020. |
at a Compound Annual Growth Rate |
Consequently, its revenue contribution is |
( CAGR) of 26.72 per cent. |
set to rise to 3.9 per cent in 2020 from 3.2 |
The research report expects that mobile |
per cent in 2013. |
devices are expected to grow at a high |
According to the government of India Task |
CAGR of 33.4 per cent between 2013 and |
Force report( DietY), the ESDM market in |
2020. Consequently the share of mobile |
India expects the imports to come down to |
devices in semiconductor revenue is |
50 per cent by the year 2016 as compared |
expected to grow from 35.4 per cent in |
to 65 per cent in 2014-15 leading to |
2013 to 50.7 per cent in 2020. Further, the |
creation of around 27 million job |
telecommunication segment is also |
oppor tunities. |
expected to grow at a high CAGR of 26.8 | |
Over the past several years, many original |
million), while 24 are in an advanced |
equipment manufacturers( OEMs) and |
stage. The Government of India has |
integrated device manufacturers( IDMs) |
allowed 100 per cent Foreign Direct |
have invested in the Indian semiconductor |
Investment( FDI) under the automatic |
space. |
route in Electronics Systems Design and |
The Government of India expects |
Manufacturing sector. According to the |
investment proposals in electronics |
data released by the Department of |
manufacturing to increase two times in |
Industrial Policy and Promotion( DIPP), the |
the two years to 2017-18, giving a push |
electronics sector attracted foreign direct |
to the government ' s ' Make in India ' |
investment( FDI) worth US $ 1.53 billion |
initiative. Of the 54 proposals received, the |
between April 2000 and September 2015. |
Centre has approved 30 requests entailing |
Some of the notable developments in this |
investments of Rs 6,000 crore( US $ 900 |
sector are as follows: |