The newly joined President of ISA, PVG Menon shares his insights about the emerging Indian Semiconductor Industry.
Outlook for Indian Semiconductor Industry
In 2010, the combined report by ISA and analyst firm Frost & Sullivan stated that the Indian semiconductor market is expected to grow to $400 billion by 2020. Though 2011 has been slightly challenging, we are still going ahead with our earlier forecast. There has been a definite slowdown in the growth.
But things seem to be on the promising side in the year 2012 and the National Electronics Policy is the reason behind it. The moment we have national mission on the surface, pretty much all vectors of the industry begin to align. Considering the developments that followed during the 60s and later, we can be sure that the rate at which this electronics mission will progress is sure to witness the same multiplier. The policy talks about 200 companies growing to self sustaining size in four to five years time. ISA envisages that we should have at least 50 semiconductor companies from India. This would in turn leverage the talent and the IT pool that we have here because we have always believed that India is a powerhouse for talent.
The tragedy is that we do not have products from India. The hope is the lot of funds will be unlocked via the EDF and other market access which will guarantee some sort of market pull for people who are coming in would create a virtual cycle in which we can get products that are made in India.