Date: 29/01/2009

Indian semiconductor market parameters are not so common with world semiconductor market

The Semiconductor ICs and components used in Indian made electronics systems goes into product market which is not global and compete in least with other Asian made products exclusively made for developed economies. Since the present downturn of world semiconductor market is more related to economic recession faced mainly by US, Europe and economies dependent on them, India's semiconductor market will be impacted in very less margins. Even otherwise, OEMs around the world would prefer India as a better manufacturing destination due to its cost advantages.

Few reports, which have predicted a huge growth for Indian semiconductor market based on the fact that, India, might become another manufacturing hub for world markets to counter the dominance of China, along with catering to the needs of fast growing domestic market. These predictions might not need a change in the growth figure due to present downfall in semiconductor market. The reason is, the worldwide semiconductor market slump may only last for a year. It's known in the earlier years, whenever the industry has fallen, it has bounced back with high growth figures in the following years. So in long term, the Indian semiconductor may take more of a driver position rather than dependent.

The WiMAX, further penetration of cellphone usage, Laptop market, industrial Automation, Energy harvesting, Solar, hybrid/electric automotives, and lot more will only grow in this part of the world.

Even the domestic consumer market (LCD TVs to Set-top boxes) is still better opportunity in the present situation compared shrinking markets in other regions.

So nothing to worry, semiconductor world has seen dotcom burst and will bounce back.