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"India will Remain One of the Fastest Growing Regions"

Jaya Smitha Menon
Tuesday, December 1, 2009
Jaya Smitha Menon
With ongoing economic turmoil affecting the companies in the electronics sector badly, there has been direct or indirect impact to the Indian economy as well. However, India will, in particular, remain one of the fastest growing regions; there is an increasing semiconductor usage as the market for electronic products such as PCs, digital consumer appliances, and mobile communications continue to expand says Hanns Windele, Vice President, Europe, Mentor graphics in his interview with the SmartTechie.

Can you share some thoughts on the global semiconductor market in the coming year?
The current economic contraction will affect all companies in the electronics sector. Directly or indirectly that will impact the Indian economy as well. But this downturn is different from a typical semiconductor down cycle. It has its origins in an over-leveraged financial system rather than in surplus inventory, too much of fab capacity, or lower unit volumes.

The semiconductor industry is a supply-demand based industry and therefore it is one of the industry segments on which the current economic downturn will have its effect. However, the impact will be so bad as expected by many only if the financial system becomes completely unstable. For sure, the semiconductor industry will quickly enter the allocation mode again as soon as the economy picks up since there is no backlog and fab capacity has not been built up beyond need.

India will, in particular, remain one of the fastest growing regions; there is an increasing semiconductor usage as the market for electronic products such as PCs, digital consumer appliances, and mobile communications continue to expand.

What in your perspective are the focus trends and key insights for the Indian market?

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