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Bangalore
April 23, 2008
The India Semiconductor Association (ISA) and IDC (India) launched 'India
semiconductor and embedded design service industry (2007-2010): Market,
Technology and Ecosystem Analysis'. The report was launched by EK Bharat
Bhushan, IAS-Director General, STPI in the presence of S Janakiraman,
Chairman, India Semiconductor Association; Poornima Shenoy, President, India
Semiconductor Association; and Kapil Dev Singh, Country Manager, IDC.
The key factors that determine the growth of the design sector in India are:
The growing expertise and capabilities in complex end-to-end design; strong IP
development and talent. The domestic market is one of the fastest growing in
Asia as well as globally.
Commenting on the Indian design market, Shenoy said, “The Indian semicon
design industry with over 200 companies is on a strong growth trajectory. Our
growth is nearly 22 percent, which is three times the global growth rate of
around seven percent. We are looking eastward for business and collaboration
heralding a new era in the future of the sector.”
Announcing the findings of the ISA-IDC report, Singh said, “The Indian
semiconductor and embedded design services market has grown consistently over
last five years and market is expected to cross $7.37 billion in 2008. The
domestic semiconductor and embedded design services industry is all set to enter
a new phase-Ver 2.0, following on from where Ver 1.0 left off. To achieve this
next phase of growth the industry needs to focus on availability of quality
manpower, higher productivity and more value creation.”
Key findings:
- The total design market in India for 2007 was estimated at $6 billion. 81
percent of the revenues were in the area of embedded software, followed by
VLSI design (13 percent) and hardware/board design (six percent).
- The total workforce employed in the design services industry in India was
estimated at 1,30,000 in 2007.Of this, the bulk of the jobs were in embedded
software 82 percent followed by VLSI design (11 percent) and hardware/board
(seven percent).
- The industry was estimated to grow at a CAGR of around 21.7 percent
between 2007-2010.
- The geographical focus of the industry indicates that US has a share of 70
percent; Europe at 30 percent; and the emerging economy is that of Japan.
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