Indian chip design industry to reach $10.2 bn in 2012

CAGR of 17% beats world average in the sector.

ISA, the apex trade body representing the Indian semiconductor industry released the ISA-DIT Study on semiconductor design, embedded software and services industry. The study was released by Shri. Kapil Sibal, the Honorable Minister of Communications & Information Technology at ELITEX 2011.

Key highlights:

The Indian semiconductor design industry, consisting of VLSI design, embedded software development and hardware/board design is estimated at US$7.5 billion in 2010 and is expected to grow YoY at 17.3% and reach US$ 10.2 billion by 2012
The top 10 global fabless companies and the top 25 semiconductor companies have operations in India
The Indian semiconductor design industry employed workforce strength of 160,000 in 2010. Of this the largest number of jobs is in the embedded software space i.e. around 82%.
Increasing consumer electronic good sales, telecom/ networking market and growth in the use of portable/ wireless products globally, are driving the growth of the semiconductor design industry
Emergence of technologies like LED screens, 3G, Wi-Max translates into increased demand for semiconductor design
Automobile electronics in passenger and industrial vehicles are increasingly getting “smarter” with on-board computer systems used to enhance safety and customer experience

Commenting on the report, Poornima Shenoy, ISA President said, “India ranks in the top few countries in the world on the availability of relevant talent plus colleges and the ability for high end design companies to scale up. If we are able to fix the issues of sector specific skills and quality, India could become a world leader in this space. DIT’s support to this study underlines the importance that the Government of India accords to this industry.”