Business Development Executive

Current Scenario of Semiconductor Industry in India1

In recent years, many original equipment manufacturers (OEMs) and integrated device manufacturers (IDMs) have invested in the Indian semiconductor industry.

According to data released by the Department of Industrial Policy and Promotion (DIPP), the electronics sector attracted foreign direct investment (FDI) worth US$ 1,403.74 million between April 2000 and September 2014. Also, the telecommunications sector attracted FDI worth US$ 16,628.12 million during the same period.

Future Prospects and Latest Trends in the Indian Semiconductor industry

According to the latest report by NOVONOUS, the semi conductor industry is estimated to grow from US$ 10.02 billion in 2013 to US$ 52.58 billion in 2020 at CAGR of 26.72 per cent.

The research report concludes that mobile devices are expected to grow at CAGR of 33.4 per cent from 2013 to 2020. The contribution to semiconductor revenue is expected to grow from 35.4 per cent in 2013 to 50.7 percent in 2020. Also, the telecommunication segment is expected to grow at a CAGR of 26.8 per cent from 2013 to 2020 and its contribution to total revenue will remain the same at 19.7 per cent in 2020.

Gujarat will have its first semiconductor wafer fabrication manufacturing facility by late 2017 in Prantij of Sabarkantha district. The facility, which will be set up by Hindustan Semiconductor Manufacturing Corporation (HSMC), will employ over 25,000 people including 4,000 direct employees. HSMC along with ST Microelectronics (France/Italy) and Silterra (Malaysia) will set up two manufacturing units each with capacity of producing 20,000 wafers per month.