Date: 10/04/2012

India semiconductor market 2012: revenue to grow by 20%, as per Gartner

While the analysts have tough time in predicting a 3-4% global semiconductor market for 2012, its easy for them to estimate high growth of 20% for the India semiconductor market, due to the fact that things looking positive on many fronts. Whatever way you try to see India need to buy electronic goods for nearly every market segment. India's average income is rising and electronics device cost is falling, so is the increase in shopping of electronic devices.

Though environment in India is not so conducive for high-tech manufacturing, the market demand trend suggest smart manufacturers showing interest in going for local assembly of equipments, for the benefit of saving in cost and easy reach to domestic market. China might have grown in manufacturing technology but the low cost advantage China used to offer is soon coming to end due to increase in wages and other costs in China. This gives MNCs, India as an attractive option for low cost manufacturing, if not complex manufacturing but for the easy to manage manufacturing. Board assembly, final unit assembly are growing trends in India supported by increasing number of EMS providers.

Bacause of these trends OEMs are buying semiconductor devices and other components locally.
All these is what made market research company Gartner to estimate India as fastest growing market for semiconductor chips and other devices in 2012. Gartner's India semiconductor forecast is: total India semiconductor revenue to reach total $9.2 billion in 2012, a 20 percent increase from 2011. For the size of India it is still small, global semiconductor revenue is forecasted by Gartner to reach $316 billion in 2012.

Gartner finds in India, mobile phones, PCs and LCD TVs will account for nearly three-fourths of India's semiconductor consumption in 2012. Mobile phone unit production is expected to grow 21 percent, with semiconductor revenue for mobile phones totaling $4.8 billion in 2012, and PC unit production in 2012 is projected to increase 7 percent, and semiconductor revenue from PCs will reach $1.8 billion, as per Gartner. LCD TV unit production in 2012 is projected to increase 47 percent, and semiconductor revenue from LCD TV will reach $312 million in 2012, according to Gartner.