India semiconductor market to grow by 20 per cent: Gartner

A report by Gartner states that in India, mobile phones, PCs and LCD TVs will account for nearly three-fourths of India’s semiconductor consumption in 2012. Mobile phone unit production is expected to grow 21 per cent, with semiconductor revenue for mobile phones totalling $4.8 billion in 2012, and PC unit production in 2012 is projected to increase 7 per cent, and semiconductor revenue from PCs will reach $1.8 billion, as per Gartner. LCD TV unit production in 2012 is projected to increase 47 per cent, and semiconductor revenue from LCD TV will reach $312 million in 2012.
Though environment in India is not so conducive for high-tech manufacturing, the market demand trend suggest smart manufacturers showing interest in going for local assembly of equipments, for the benefit of saving in cost and easy reach to domestic market. According to the report, China might have grown in manufacturing technology but the low cost advantage China used to offer is soon coming to end due to increase in wages and other costs in China. This gives MNCs, India as an attractive option for low cost manufacturing, if not complex manufacturing but for the easy to manage manufacturing. Board assembly, final unit assembly are growing trends in India supported by increasing number of EMS providers.As a result, OEMs are buying semiconductor devices and other components locally.