India's semi market growth triple global semi growth

By Colleen Taylor, Contributing Editor -- Electronic News, 9/3/2007

In the latest evidence of the burgeoning technical prowess within the subcontinent, India's 2007 annual growth in the semiconductor market is nearly triple the rate at which the global semiconductor market is expanding, according to report issued today by the India Semiconductor Association (ISA) and business research and consulting firm Frost & Sullivan.

"As domestic demand for all electronics products is growing, India is emerging as one of the fastest growing region in the world," Anand Rangachary, the managing director of the South Asia and Middle East regions for Frost & Sullivan, said in a statement.

According to the report, the 2007 global semiconductor total market is growing at a rate of 8 percent to 9 percent, while the 2007 total market in India is growing at a combined annual growth rate of 26.7 percent.  The report went on to say that India, which represented 1.09 percent of the global semiconductor market in 2006, will make up 1.62 percent by 2009.  Mobile handsets, desktops and notebooks, GSM base stations, set top box and energy meters are the top five end-user products that are expected to drive growth. The top four semiconductor products that are expected to drive revenues are microprocessors, analog, memory and discretes.

The report also said that the growth of total available market (TAM) revenues from $1.26 billion in 2006 to $3.18 billion in 2009 stands at 35.8 percent, in comparison to the 26.7 percent growth for total market (TM) revenues from $2.69 billion in 2006 to $5.49 billion projected in 2009. According to the ISA and Frost & Sullivan, TAM represents semiconductor usage in local manufacturing, and its faster growth than TM is "signifying increasing domestic manufacturing for different electronic products in India."