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IT Propels Semiconductor Industry|
- By Pankaj Maru, May 26, 2008 1833 hrs IST
- Tags : IT Propels Semiconductor Industry
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Semiconductor remains the key element for various fields such as telecommunication, computers, Information Technology (IT), printing technology, mobile phones, portable electronic devices and gadgets, office automations, and consumer electronics, and many other segments. The use of semiconductors, also called as chips is extensively growing in everyday use.
Following the growing demand of semiconductors, the India Semiconductor Association along with Frost & Sullivan research had conducted a comprehensive survey in 2005. The study takes into account the growth trends and forecasts for 2005-2015. Based on it, regular annual updates are made and offered to various industries.
According to the recent update, the estimated Total Market (TM) revenue for semiconductors in 2007 was US $ 3.46 billion and the Total Available Market (TAM) was US $ 1.74 billion. Interestingly, telecommunication, information and technology, office automation, and consumer electronics segments contributed 82.6% to the total market revenue.
"Major end user segments for semiconductors and embedded systems are communications, IT and consumer electronics. Together, the important product sub-categories that would drive the semiconductor market are mobile handsets, wireless equipment, and video streaming services such as set-top boxes, and smart card terminals," says Nirav Shah, director of (Marketing) eInfochips, based in Ahmedabad. The company offers embedded system designing, turnkey solutions and product developments.
For the 2008, the estimated total market (TM) revenue is US $ 4.38 billion and TAM is US $ 2.37 billion. For 2009, TM will be about US $ 5.49 billion and the TAM will be around US $ 3.18 billion, the study says.
TAM indicates semiconductor usage in local manufacturing, while TM marks the domestic manufacturing for various electronic products in India. However, the semiconductor industry is witnessing rise in TM against TAM.
According to Niju V, deputy director (Industrial Automation) of Frost & Sullivan, South Asia and Middle East, the estimated total market of semiconductor industry in India is US $ 2.7 billion and the estimated total available market (TAM) values US $ 1.26 billion.
"Generally the IT segment is divided into IT hardware and IT Office Automation (ITOA), which includes printers, notebooks, desktops, monitors, servers and copiers. IT/ITOA contributes 32% to TM and 45% to TAM in the semiconductor industry. About 50% demand of semiconductors comprises of IT/ITOA in India," Niju informs.
Though the growth can be considered substantial from Indian market, in comparison with China, Malaysia, South Korea, Philippines and Thailand, Niju adds, "India is still far behind manufacturing as it had started off late in this area and until last year the government had no policy for semiconductor industry."
On IT's share in boosting the semiconductor industry, Shah says, "IT offers the impetus in the form of readily deployable talent poll to the semiconductor industry. Importantly, most of the end applications for semiconductor products are being developed by the IT industry."
According to him, most customers have complex end-to-end design needs that require strong Internet Protocol (IP) and customized application development. "IT industry enables in offering turnkey solutions for most of the customers, whether it's the office automation, consumer electronics, medical electronics, telecommunications or industrial automation. All of them need semiconductors and IT expertise," he adds.
Speaking about trends in semiconductor industry, Shah indicates that there's more development on effective IP, convergence, connectivity and intelligence that are driving innovation here. "There's a preference for feature rich devices and growing intelligence in a wide array of semiconductor markets like auto, digital media, consumer and wireless devices," he concludes.
The study comprised of the entire semiconductor ecosystem, including chip design, hardware design, embedded software development, use of semiconductors, and also the projected workforce for the semiconductor based industries and overall its impact on Indian economy.
Related Links:
Indian Semiconductor Industry Is Growing
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