Semiconductor revenues in India to rise to $8.2 billion

By 2015, mobile phones, PCs and LCD TVs will account for three-fourths of Indias semiconductor consumption.

According to US technology research firm Gartner, Inc, India's semiconductor consumption is projected to total $8.2 billion (Rs36,244 crore) in 2011, a 15.5-per cent increase from the 2010 revenue of $7.1 billion, according to Gartner, Inc.

Based on this forecast, India is the fastest growing market in terms of semiconductor consumption for 2011, Gartner said in a report, Forecast: Semiconductor Consumption by Electronic Equipment Type, Asia/Pacific, 2Q11 Update.

"Changing demographics, increasing consumer affluence, economic growth and favorable government policy continues to drive the electronic equipment manufacturing industry in India," said Ganesh Ramamoorthy, research director at Gartner.

Ramamoorthy says, ''Numerous global electronic equipment manufacturing companies have set up production facilities in India, to take advantage of the growing domestic market and to cater to neighboring markets in the region. As a result, semiconductor consumption is also growing at a rapid pace.''

The communications electronics segment, which includes mobile phones, wireless LAN, public switching and other communications infrastructure equipments, will account for the largest chunk of nearly 52 per cent of India's semiconductor consumption in 2011, followed by the data processing electronics segment comprising of desktop computers, laptops, monitors and storage equipments, with about 26 per cent share of the total semiconductor consumption.