India's Semiconductor Consumption Will More Than Double

The total electronic equipment production in India will reach US $32 billion in 2011, compared to US $14 billion in 2006, a compound annual growth rate (CAGR) of 18 percent, according to Gartner. Semiconductor consumption in India will more than double from US $2.8 billion in 2006 to US $7.2 billion in 2011. The growth in electronic equipment production is being bolstered by the rapidly growing demand for electronics equipments in India.

Gartner classifies electronic equipments across six broad categories: communications electronics, data-processing electronics equipment, consumer electronics, industrial electronics, automotive electronics and military/civil aerospace electronics.

In 2006, the consumer electronics equipment segment held the no.1 position with 39 percent share of the overall electronic equipment production in India. The communications electronics and data processing electronics segment held the no.2 and no.3 positions respectively with 38 percent and 12 percent of the overall electronic equipment production in India, during 2006.

Ganesh Ramamoorthy, principal research analyst at Gartner said, "As local manufacturing of electronics grows to keep pace with the increasing demand, semiconductor consumption will also grow at a healthy rate. Semiconductor vendors and original equipment manufacturers (OEMs) should therefore fine-tune their local sales and manufacturing strategies and better position themselves to address the needs of the domestic market."

In terms of the semiconductor total available market (TAM) in 2006, the communications electronics segment held the No.1 position with 46 percent of the TAM, driven primarily by the increased production of mobile phones."

Posted to the site on 8th August 2007