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Inept infrastructure stifles India's semiconductor

By Eureka Bharali | Monday, 26 January 2009, 02:09 Hrs | 2 Comments

Bangalore: Setting the infrastructure right can make India the most craved semiconductor market. "Due to the infrastructure problems in terms of business premises and travel, the Indian semiconductor market has lagged behind the Chinese market," said Amit Dhir, Senior Director, Business Operations and Marketing, Xilinx, a semiconductor company.

In the recent VLSI conference the industry leaders also pointed that the factors like huge investment and the high risks make many companies retract their steps from entering into the semiconductor segment in India. The companies which are renowned as tech companies have not assumed the position due to their electronics engineering capabilities but for their business application software packages and services. Contrary to the Indian scene, China boasts of a semiconductor market that managed to surge by 24.4 percent when global semiconductor revenue plunged by 28.6 percent in 2001. As per the analysis of Databeans, while China is expected to touch $19.5 billion by 2011, the Indian semiconductor market is expected to be around $2 billion.

However, "In the next ten years I expect this problem to be completely solved," said Dhir, on the sidelines of talking to siliconindia about their plans in the Indian automotive and wireless market. "Better airports and railways show that the government is realizing the importance of infrastructure," he adds. The participation of the rich firms like Wipro, Reliance, Tata and Infosys by investing in the sector will also help the semiconductor market to flourish.

The 1984 founded company, Xylinx see a huge contribution from India to their revenue. According to the company, it is the communication sector which is the strongest pillar for the growth of the semiconductor industry in India.

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Reader's comments(2)

1: The political and tax structure stability also counts. The high investment and short return periods of semiconductor projects count on these site planning and selection principles.

Posted by:Shirish - 27 Jan, 2009

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2: checkout the connectivity.. jst by improving two or three airports none will really benefit.. to reach to the core of india.. its the other mediums which has to gain momentum.

Posted by:shalini - 25 Jan, 2009

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