Indian semiconductor sales to touch $8.04 billion in 2011

Following global trend, the Indian semiconductor market is poised for a phenomenal growth and sales may reach $8 billion at the end of next year driven by mobile phones, telecommunications, office automation and consumer electronics.

The Indian Semiconductor Association (ISA) said yesterday that the Indian semiconductor market grew 15.6 per cent in 2009 and revenues are poised to grow from $5.39 billion in 2009 to $8.04 billion in 2011.

The market is estimated to grow at a CAGR of 22.1 per cent with wireless handsets, 3G networks, WiMax, notebooks, set-top-boxes and smart cards primarily driving the semiconductor market in India.
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It said that the corresponding period is expected to witness a phenomenal CAGR of 34.8 per cent in the Total Semiconductor Available Market (TAM). TAM revenue is anticipated to climb to $4.84 billion in 2011 from $2.66 in 2009.

But the biggest growth will occur in the telecommunications infrastructure development related domestic semiconductor, where consumption is expected to grow by a massive 132.5 per cent from 2009 to 2011.

Releasing the ISA-Frost & Sullivan India Semiconductor Market 2009 - 2011 update, Poornima Shenoy, president, ISA said, ''The semiconductor industry in India is growing at a CAGR of nearly 22 per cent. This points to the rapidly growing domestic market which necessitates the need to have electronics as a national agenda. It can contribute substantially to the GDP in the years to come.''

''Electronic Systems Design and Manufacturing, or ESDM, is a great opportunity ahead of us. The Total Available Market (TAM) for the Indian electronics industry is anticipated to rise significantly to $37.1 billion in 2011 from $25.4 billion in 2009, with a Compounded Annual Growth Rate (CAGR) of 21.4 per cent,'' said Dr. Biswadip (Bobby) Mitra, chairman, ISA.