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Indian Semiconductor Market

Added: (Tue Oct 09 2018)

Pressbox (Press Release) - Maximize market research forecasts the total market size of the Indian semiconductor market to reach US$ 38 Bn by 2026. Indian Semiconductor Market is segmented by Material (Silicon, Germenium, Carbon, Tin, Others)-by fabrication technologies (Metalorganic vapour phase epitaxy (MOVPE), Molecular beam epitaxy (MBE), Hydride vapour phase epitaxy (HVPE), Liquid phase epitaxy (LPE), Metal-organic molecular beam epitaxy (MOMBE), Atomic layer deposition (ALD))-by Component (IC, O-S-D) – by Organisation Type (Large Enterprises, SMEs)-by End-User Industry (Electronics, Telecommunication, Information & Technology, Data Processing, Automotive, Industrial Machinery, Consumer, Others ).

The key drivers for the semiconductor market in India include telecom infrastructure equipment, wireless handsets, notebooks, and other IT and office automation products, set-top boxes and smart cards. Growth sectors, including healthcare equipment, automotive, consumer goods and industrial goods – all of which progressively use electronics – are as well expected to encourage semiconductor consumption in India. With the location of a wafer fab in India, the country could achieve a level of independence in electronics and partly cut back the very high supply chain risks that the country is exposed to, without an alternative source for procurement.

The economic indicators are favorable for the healthy growth of the Indian semiconductor market

With 7.7% GDP growth rate in the 1st quarter of 2018, India can be termed as the most lucrative market across the globe. The impressive demographic dividend, continuous rise in the proportion of middle class, changing expenditure patterns are the distinguishing factors of the current Indian economy which are consequently attracting the global investment. The local demand is anticipated to be driven by the growth in income levels directing to the higher take-off of electronics products. The government policies and incentives as well as the electronic manufacturing cluster policy will help the industry to grow at anticipated pace. Steps are being taken to boost domestic production of electronic items and cut down dependence on imports. These include enforcement of basic customs duty on specific items falling outside the ambit of IT agreement, levy of education cess on imported electronic products for parity, etc.

India is heavily dependent on Asian countries for semiconductor imports

Although electronic manufacturing service companies in India have reached considerable maturity for final assembly, testing, packaging and distribution services, India is heavily dependent for semiconductor chip imports on Asian countries such as China, Taiwan, South Korea and Japan. Chinese and Taiwanese companies compared to western players, are making the major inroads in Indian domestic semiconductor market.

The government level paradigm shift towards electronic manufacturing will make India a lucrative market in future

According to Union Minister of Information Technology, Foreign Direct Investment (FDI) in electronic manufacturing has reached an all-time high of US$ 18.34 Bn in 2016 primarily due to government reforms and it’s Make in India initiative. The Government of India has allowed 100 percent Foreign Direct Investment (FDI) under the automatic route in Electronics Systems Design & Manufacturing sector. The Ministry of Electronics and Information Technology plans to revise its policy framework, which would involve the government taking a more active role in developing the sector by providing initial capital, with the aim to attract more private players and make India a global semiconductor hub. With the government of India’s flagship program ‘Make in India’ to push local manufacturing and with initiatives like smart cities and ‘Digital India’, the industry expects the country to reduce its dependency on electronics imports by 50 percent by the fiscal year 2016-17.

Maximize market research, a global market research firm with the dedicated team of specialists and data has carried out extensive research about the Indian semiconductor market. The report encompasses the market by different segments and region, providing the in-depth analysis of the overall industry ecosystem, useful for taking an informed strategic decision by the key stakeholders in the industry. Importantly, the report delivers forecasts and share of the market, further giving an insight into the market dynamics, and future opportunities that might exist in the Indian semiconductor Market. The driving forces, as well as considerable restraints, have been explained in depth. In addition to this, competitive landscape describing the strategic growth of the competitors have been taken into consideration for enhancing the market know-how of our clients and at the same time explain the positioning of competitors.

Browse the market data Tables and Figures spread through a comprehensive research report and in-depth TOC on” Indian Semiconductor Market”

Submitted by:Vikas Godage
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