Sectoral Capsule-Semiconductor Chips Market in India (2010-2019)
The semiconductors market in India has shown exponential growth due to its wide application invarious high growth sectors. According to the Department of Electronics and InformationTechnology (DeitY), India designs nearly 2,000 semiconductor chips every year. Chip designing andverification involves the participation of more than 20,000 engineers working across variousdepartments. The growth of the Indian semiconductor design industry may be attributed to thisphenomenon. Semiconductors are widely used in several industries such as telecommunication,mobile devices, Information Technology and Office Automation (IT&OA), automotive and otherindustries. It is projected to reach USD 41.6 billion by 2019, growing at a CAGR of 26.4 percentthrough 2015-2019.
The rapid growth of the wireless industry has directly stimulated the country’s semiconductormarket. The hardware development for the future Internet of Things (IoT) is one of the majorconcerns of the semiconductor and networking industry. The challenge would be to develop somelow energy chips for IoTs. The semiconductor chips market is strongly driven by the automotivesector. Electronics hardware production in India is increasing in sync with the semiconductor market.Development of the country’s chip designing industry is adding fillip to the semiconductor market.The sector comprises of Very Large Scale Integration (VLSI) Design, embedded softwaredevelopment and hardware design.
To set up a new semiconductor manufacturing unit involves heavy investment. India being the 2ndlargest populated country and with a high unemployment rate has the availability of cheapmanpower. However, the country lacks well educated manpower which poses a huge challenge. Thesemiconductor industry requires very specific raw materials such as silicon, germanium, gallium andmany other gases which are imported.